Does your grant request seem unreasonable to funders? A common misassumption for first time grant-seekers is that grant funding is easy money for new nonprofits. In reality, there are millions of new nonprofits approaching funders each year. It is difficult for funders to distinguish between the ones that will make it and those that will close (breaking promises along with the closure). Funders perceive new nonprofits as risky.
Grant funding is more likely to go to an organization that has a solid relationship with a funder or a clear history of proper management of past awards. Many grant consultants recommend an organization pursue grant funding after the organization's third anniversary. However, I don't hold to those rigid rules. I have seen organizations defy the odds, but I have also seen far more organizations waste time pursuing opportunities that they never had a shot at winning.
There are grant opportunities available for new nonprofits. One of my clients recently won a grant award as a new nonprofit. It is possible. When this client asked for help in pursuing funds, we first discussed their expectations about the award. It’s important to start the process in the right headspace. Having a clear understanding of what will occur and how funders operate will reduce the stress associated with the process. It will increase your chances of winning because you can tailor your strategy and make a request that is appropriate and attractive.
There is a distinct strategy for pursuing an award as a new nonprofit. You need to find the right opportunity with a funder that is open to funding newer organizations. Invest your time in research and strategy before investing time in writing proposals. Consider the funder’s goals - is it to support new nonprofits or is it to effect change and support programming? If they do not explicitly mention supporting start-ups - their duty is to invest in the program that is most likely to succeed in helping them achieve their mission. They need to place their bets on an organization that offers stability and historical proof. That knocks new nonprofits out of the running immediately if there are other programs offering the same services to the same population. That is why a lot of grant professionals recommend new nonprofits wait until they have a few years of experience in fundraising under their belt before pursuing grants.
But the reality is that many organizations have no intention of waiting three years to submit their first proposal. So what is NOT an appropriate ask? Many new nonprofits with zero historical grant experience ask for awards that exceed their annual revenue. They have raised $30k their first year and ask a foundation for $100k the next. These proposals usually receive a polite rejection letter with no insight on why it was rejected. Unless the foundation is giving an award to support startups - a request of this scale would be an automatic red flag. A red flag so big it isn’t even worth the foundation’s time in explaining why the proposal was rejected.
The funder is looking for a request that is appropriately scaled to the organization's proven abilities. They are also looking for proof of investment from others in the community, such as individual donors.
Funders do not want to award one grant that consists of the organization's primary source of funding. They want assurances that the organization will not fold when the grant ends. A funder wants to be sure of their “investment” in a program. They will look closely at the organization’s capacity to fulfill what they are promising.
Your time is valuable. You don’t want to waste time developing and submitting proposals that feel preposterous to the funders. There is no magic ask amount that is attractive to funders. The right ask will vary based on many details, including the opportunities that exist, the program design, your specific organization’s history, and the relationship with the funder.
Save yourself some heartache and have a conversation with a grant professional about the opportunities you are considering and what the right ask might be for your specific circumstances. Our grant coaching package might be the right fit for you to build a solid foundation to move toward grant funding.
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