Funder Relations

Funder relations can sometimes feel tricky to navigate. Is it okay to reach out? What’s an appropriate amount of time to wait? It’s important to remember that funders are people, too. Even though they hold the purse strings, you can approach them respectfully unless the opportunity prohibits them from talking individually with applicants. Let’s discuss timing, communication strategies, and what to do if you get ghosted.

Too often, there is confusion between grants and donations in nonprofit organizations. When it comes to nonprofit funding, these two terms are often used interchangeably. Additional confusion can be found when major individual donors begin making donations in amounts similar to what an organization can expect to receive as a grant from a foundation. Nonprofit professionals know that both funding streams mean revenue for their organization but may only have a vague understanding of the distinct characteristics and requirements of each. Understanding the key differences between the two helps nonprofit professionals make informed decisions on funding strategies.

Before I began working as a grant consultant, I did not understand all the details and intricacies of grant budgets, including the difference between restricted and unrestricted funds. I remember working with one nonprofit that was thrilled to receive a significant grant for program staff salaries, only to realize later that they could not move those funds elsewhere when a staff member unexpectedly left the position, and it took three months to find a replacement. They could not use any of that money for other programming or general operating expenses, which made the organization feel they had missed out on money on which they previously budgeted. This experience taught both me and the nonprofit the benefits and challenges of having restricted funding in their budgets. If you are working with grants as a consultant, or even working as a grant professional within a nonprofit, getting a handle on the differences between restricted and unrestricted grants is going to make a big impact on how you approach funding and budget development.

It’s not news that grant professionals are often underrecognized for their vast knowledge, technical and subject matter expertise, and contributions to organizational success. It’s also not infrequent that grant professionals are excluded from project planning or meetings with potential funders until late in project development when they are asked to “just” find funding or write a grant. For many individuals, that lack of validation can often be internalized as a lack of acceptance or value. For others, the recognition received is passed on to others they believe are more worthy than themselves. This is especially true for women, BIPOC professionals, and those who have been subjected to microaggressions in their community and workplace (but that’s an entirely separate subject worthy of its own time and space). When highly qualified, high-achieving professionals question their value, competence, or adequacy to successfully perform work that they are 100% capable of performing, it leads to self-doubt, negative self-image, burnout, and workplace toxicity. While not a recognized mental health disorder – you won’t find this in the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders – the common term for these unfounded feelings of inadequacy is imposter syndrome.

In grant seeking, fundraising professionals sometimes refer to low-hanging fruit as the donors who give year after year with little effort, synonymous with “easy money.” While the term is often tossed around, it can be frustrating to funders and grant professionals. Funders may have fewer requirements to increase accessibility to nonprofits or value the longevity of relationships. The funder is still striving to make an impact in the community. Grant professionals understand the nuances of grant seeking and can see the industry landscape increase in competitiveness as more organizations apply for funding and foundations give conservatively in response to volatile markets. Fundraising strategies that rely on these dollars without stewardship may find themselves in the midst of a drought.

Denial can be challenging, especially when your grant proposals seem to be on a losing streak. Before you start rethinking your grant strategy or wondering if you’re doing something wrong, there may be other proactive steps and factors to take into consideration. Grant funding is complex. There are a multitude of funding streams, networks and relationships, and preferences involved—most of which are beyond your control. And while you can do your best to present an aligned, impactful proposal, sometimes you will never know the reason a proposal is denied. Sometimes, a string of denials prompts a self-evaluation to evaluate how you could do better, or you take the rejection personally. While self-awareness is important, so is understanding the factors that are beyond your control in an application.

Congratulations! You have received notice that a local foundation will gladly support your organization and/or program during the coming year. The foundation board or staff are excited about your mission, your plans, and helping serve your community. You record the amount in your donor and accounting software, generate a letter acknowledging the gift, and move on to managing the implementation of program activities. Right? Well, no.

  I recently attended a webinar through the Grant Professionals Association entitled “Pet Peeves of Funders.” The trainer had conducted extensive surveys with grant making entity officers in her area to assess their biggest pet peeves with the organizations they fund. One program officer surveyed shared that...

This time of year starts to get a little strange between projects wrapping up for the year, the time change I still have not adjusted to, and differing work schedules for holiday plans and using up vacation time. While some like to bank their paid time off to have a full holiday break (which is fully respectable), I like to use this quieter time to work on projects that get pushed to the side during busy seasons. Here are some ways I like to use downtime to my advantage.