Why do my grant applications keep getting rejected?
So you’re a small to medium-sized nonprofit applying for your first few grants. You’ve done all the things. Jumped through all the hoops.
You’ve researched grant opportunities that match the mission and vision of your organization. You’ve filled out the applications, following all the instructions to the letter. – dotted your i’s, crossed your T’s, created 1-inch margins, and never deviated from Times New Roman font.
You’ve submitted your applications well before the deadlines.
And waited.
And waited.
And waited some more.
Only to get... a slew of polite rejection letters.
If you’re like most disappointed applicants, you’re probably asking yourself what you did wrong.
And the answer will surprise you.
Most likely, you did absolutely nothing wrong.
I can almost feel your disbelieving stare.
Nothing wrong? How can that be?
Grantwriting is like dating
Grantwriting is a long game, and often requires a long runway before funds start to flow in. It’s normal to receive three or four rejections in a row from a funding source, especially if your organization is new and has not applied to that funder before.
The reason? It’s about relationships.
I find it useful to compare grantwriting to dating.
When meeting a prospective romantic partner, you have questions. What are their values? Are they a serial dater or do they want to settle down? Who have they dated in the past?
When it comes to foundations who have funds to disburse, their questions will be surprisingly similar. Is the nonprofit diligent about the way it manages money, implements programs, and serves the community? Does it intend to stick around long enough to make an impact, or is it a fly-by-night?
And in any relationship, the getting-to-know-you process takes time.
That’s why a nonprofit’s first few attempts at applying for funding may not yield fruit.
However, the key is to persevere, rather than give up or try to reinvent your strategy. (Unless, of course, there’s a problem with your strategy. That’s a different subject.)
Strategizing for grant funding success
But if you continue applying to the same funder for several cycles, chances are that you will break through when they see that you aren’t going away. And in the meantime, be sure to familiarize the funder with your nonprofit and its programs. Keep in touch with them. Send them your newsletter. Invite the program officers to visit. Tag them on social media when you hold a community event or hit a goal. And so forth.
And it’s a two-way street. Do the work of getting to know the foundation. Find their annual reports. Learn about the board members. Determine which groups have received funding from them in the past. Make sure you’re well-acquainted with their mission, so you know whether your program is a good fit.
There are other reasons that grant applications may be rejected. In no particular order, here are some of the top ones.
Reason #1. The funder ran out of money.
It happens. There’s only so much to go around. And most funders have certain target causes that they prioritize, so there may have been other applicants whose proposals were higher on their list – and there were no funds left in the cycle after those grants were awarded.
Reason #2. Your nonprofit applied to that funder before, and the funder is seeking to help organizations that have never received funding. Many foundations want to make their grantmaking process more equitable. To this end, they may require that an organization sit out one or more grant cycles if they have recently received funding from them. This enables the foundation to make a broader impact with their grants.
Reason #3. Your organization doesn’t have enough experience in that program area. Insufficient experience in a program area can prevent a nonprofit from meeting the benchmarks that were outlined in their application. When a foundation puts their money behind a nonprofit, they are lending their reputation to the project, and their name becomes associated with the project’s success (or failure). This is why they want to ensure that grant applicants are prepared to execute the project outlined in their grant application, and that their money will be used effectively by a nonprofit with a track record in the type of project it’s proposing.
Reason #4. Your organization doesn’t demonstrate sufficient community support. Having deep relationships within the community is an indication of a nonprofit’s resilience, preparedness to serve, and ability to create lasting change. Volunteers are often a nonprofit’s most enthusiastic cheerleaders and ambassadors, and offer significant support with advancing a nonprofit’s mission. Local governments, businesses and community organizations can step in and leverage one another’s strengths and resources in times of crisis. Community partnerships with other nonprofits help engage volunteers in deeper and more meaningful ways, strengthening their connection to the organization and its mission. And these partnerships can help nonprofits tap into new donor pools, enabling them to extend their reach by securing additional funding.
Community support is also crucial for demonstrating the need for the project. As such, it’s a factor that funders look at very closely.
Reason #5 Your nonprofit hasn’t raised matching or in-kind funds. A matching grant or in-kind funds are indications of a nonprofit’s base of support. Without this support, the organization is unlikely to be able to sustain its efforts into the future.
Reason #6. The budget narrative didn’t align with the budget. The watchword for grant application budgets is SMART: Specific, Measurable, Achievable, Relevant and Time-bound. Make sure that your budget is all of these things. The budget also needs to line up with the budget narrative. Having items on the budget that are not explained in the narrative will be interpreted as not doing your due diligence (or careless editing, which is almost as bad). Go through your budget with a fine tooth comb before submitting it. Collaborating with your financial officer or bookkeeper on the budget is highly recommended.
Reason #7. The application didn’t outline the problem or need in a compelling way. Read your grant narrative from the standpoint of someone who would be funding your project. Does this sound like an initiative worthy of support? Is the need really as great as you think it is? If so, is the problem with the quality of the writing? Did you use passive voice or active voice? Was the problem portrayed in a way that grabbed the reader’s attention? If you’re not a good writer, did you have someone with excellent writing skills look over the application before you submitted it? Engaging a skilled grantwriter can make all the difference in the quality (and outcome) of your applications.
Taking the long view
So if you're facing grant rejections, take a step back and look at the big picture, keeping these recommendations in mind. Your nonprofit's prospects are likely better than you think. Get in touch with the program officer of the foundation or government agency and ask if they can give you feedback about why your application was declined. Put their suggestions into action and plan on resubmitting in the next grant cycle. In the meantime, focus on building relationships. Invite program officers to visit your site. Send them your newsletter. Tag them on social media when you highlight program successes or hit a goal. Most important, keep at it. Before long, the tide will begin to turn on your application outcomes, and you'll start to see a steady flow of grant funding coming your way
Need help with grant writing? Let’s talk.
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