02 Dec Did You Know: The Importance of Researching Funders Before Applying by Roxanne Jensen, Ed.S., GPC

Several years ago, I worked with a nonprofit client who had received funding from a particular foundation many times in the past. The client felt confident putting the funder on their own grant calendar for the upcoming year, allowing me to focus my time on another funding priority because they were sure that the foundation would continue its support. Despite my recommendation, the client did not want to approve any research time for current funders. However, when the rejection letter came, they were surprised. After reviewing the foundation’s recent priorities, it became clear that their focus had shifted, and the grant proposal they submitted no longer aligned with their new direction. That experience was a costly lesson for the client, reinforcing how critical it is to research every funder, even returning ones, before applying. This extra step can make the difference between receiving funding and being rejected.

Aligning Priorities: The First Step to Success

Every funder has a set of priorities, broad or narrow, that guide their giving. These may be focused on a certain population, geographic region, or type of programming. One of the most common reasons applications are rejected is due to a lack of alignment with a funder’s current priorities. As grant professionals, we must ensure that our clients’ projects match the funder’s goals. That means reviewing the funder’s guidelines, mission statement, and recent funding history to see if there is a clear connection between their interests and our clients’ work.

For example, if your nonprofit is focused on educational programs for youth, and the funder with which you have a strong history recently shifted to prioritizing healthcare initiatives, it is likely that this funder is no longer a good fit. You have two options – schedule a call with the program officer to discuss whether your organization is still fit for their priorities or redirect your grant writing efforts to funders who have priorities that more clearly align with your organization’s mission.

Tailoring Your Approach

Some funders seek innovative, cutting-edge programs. Other funders want to support programs with a long history of success and proven outcomes. By researching funders, you can discover the information you need to tailor your grant application to the funder. When you understand what a funder truly values, whether it is collaboration with other organizations, building the self-sufficiency of the individuals served, or demonstrating measurable outcomes, you can highlight those in your application.

Understanding the Application Process

Not all funders have the same application process. Some funders require a letter of inquiry (short or detailed) before inviting full proposals. Other funders have an open call for applications. Some funders send invitations to nonprofit organizations with whom they have a personal working relationship. Deadlines for applications vary as well, with some funders accepting applications year-round, while others may only accept them during certain funding cycles. By researching all these details ahead of time, you can create a well-balanced grant calendar and avoid missing deadlines.

Building Relationships with Funders

Many funders like to create and maintain a long-term relationship with the organizations they support. By researching a funder’s giving history, you can get clues that help you determine the best way to approach them, a letter of inquiry, a phone call to discuss a project, or an introductory meeting. It is important to connect with funders early in the grant-writing process. A well-established relationship can significantly increase your odds of being awarded a grant. Funders are far more likely to support organizations they know and trust. Some funder cultivation strategies may include:

• Sharing concept papers and the meaningful impact your organization has in its community outside the normal funding cycle without expecting an invitation to apply.
• Serving on boards of other organizations funded by the funder.
• Collaborating on a funded project with another organization, where the other organization is the primary recipient of funding.
• If relevant (and appropriate), invite representatives of the funder to participate in your organization’s events, such as open houses, community gatherings, and award ceremonies.

Key Takeaways:

Here are some key points to remember when researching funders:

• Make sure that your project matches the funder’s goals before you apply.
• Understand what a funder prioritizes so you can tailor your application to the funder’s interests and preferences.
• Understand the funder’s application process and requirements to avoid missing deadlines.
• A strong relationship with funders can greatly increase your odds of being awarded a grant (as the grant professional, you are likely NOT the person at the organization who is best suited to build a strong relationship with the funder over time).

While some clients may resist the “extra work,” the time spent on research can prevent wasted effort on grant applications that do not match funder priorities and ultimately increase the chances of securing funding. It is not just about applying for every grant. It is about applying for the right grants – the best grants for your organization.

You can find other blog posts in this series here. AGS also offers several on-demand webinars on a variety of topics to support the full grant cycle, including fundraising, research, and building relationships with funders. Check out our website to learn more and sign up for our training newsletter.

If you are interested in grant services, training, or federal review services, or are interested in our career opportunities,  Julie Assel, CGMS, GPC, President/CEO will be happy to talk with you about this opportunity and provide you with a quote for grant services.

AGS blogs, funding alerts, and trainings are aligned with the Grant Professional Certification Institute’s Competencies and Skills.

• Competency #2: Knowledge of organizational development as it pertains to grant readiness; Skill 2.1: Assess organizational readiness to seek grants, including alignment with funder priorities.
• Competency #3: Knowledge of strategies for effective program and project design and development; Skill 3.2: Identify funding sources that align with organizational needs and goals.
• Competency #8: Knowledge of methods and strategies that cultivate and maintain relationships between fund-seeking and recipient organizations and funders; Skill 8.1: Develop relationships with funders to enhance funding opportunities.