Tired of bad news about nonprofit funding? While everyone’s focused on public spending cuts and declining donor numbers, there are bright spots in foundation giving.
Private grants are a growing and evolving slice of the philanthropy pie, so this is no time to slow your momentum. Yet, outdated assumptions can hamper success:
Myth #1: Foundation funding is modest. Our sector focuses on the intergenerational wealth transfer and its implications on major and planned gifts. Foundations also benefit from this shift.
Myth #2: Writing fuels grants success. Grant Seeking 101 emphasizes the written word as though it drives all success. Reality is more nuanced. Writing fuels smaller grants, but your most significant awards rely on relationships.
Myth #3: Bold proposals are tone-deaf in uncertain times. You might be tempted to retreat to safe, incremental initiatives right now. But, in a sea of cautious requests, your ambitious vision may be precisely what catches a funder’s attention.
Here are the extended versions of reality:
Massive Potential
It’s true that public funding and individual giving still make up the bulk of nonprofit revenue. But as those sources suffer, trends point to strong foundation giving, even amid economic uncertainty. As of this writing, few funders have committed to bold new policies this year, and yet:
Foundations surpassed $100 billion in giving for the first time in 2024 (FoundationMark).
Giving to foundations was up 15% in 2023, 11% adjusted for inflation, making foundations the fastest-growing charitable recipient type (Giving USA).
Fully 39% of funders are either actively spending down their assets or seriously considering it (National Center for Family Philanthropy).
That last statistic signals that the transfer of wealth won’t sit in endowments for generations. It may be spent during the course of your career.
Modest Grants
If that data inspires you to compose an epic proposal, here’s what I’ve learned: Writing undergirds modest grants. Relationships drive major ones.
Many smaller foundations operate with minimal staff, often just one administrator. That person relies on the efficiency of written materials to make decisions.
When it’s your job to secure the routine awards that sustain operations, craft succinct, powerful communications that convey credibility. Repeat those messages wherever you can:
Introductory emails
Letters of intent
White papers
Infographics
Updates
Social media
Website content
If you happen to know the recipient of your message, you will have an edge. Otherwise, strong written materials can lead to conversations that build rapport.
Major Grants
The most memorable awards of my career saw a mid-sized grant turn major, or a major grant turn transformative. Regardless, you birth these grants through relationships.
Conversations are the best vehicle for next-order ambitions. People who care about an issue need space to dream. Both parties decide they are willing to go to new heights. Together.
Mega grants bloom when an aspirational plan meets an inspired investor. It’s your job to introduce the two.
When your organization’s journey is well-defined, you can take other travelers with you. So, be prepared to discuss the things that make funders eager to take the trip:
An ambitious destination
Priority goals and steps
Top-line financials
Track record, expertise, and/or capacity managing significant initiatives
There will be writing to do along the way, but it won’t move the needle much. Most of your written words will have been shaped by prior discussions.
The bigger the stakes, the more likely your foundation contact will guide your next steps. Both your reputations are on the line, so this becomes a partnership in an increasing sense of the word.
Meaningful Conversations
You can’t have these discussions with just anyone. Reserve them for those at the top of your foundations portfolio.
Contrary to this unpredictable period, this is the time to go big. Let funders know what your organization needs. Let them be the ones to narrow the conversation. Then, advocate once more for unrestricted, multi-year, emergency, or exponentially more funding.
Some of the most ambitious grants I've secured came during tumultuous times.
They were not casual conversations. They were informed by my questions about funders’ current events. They moved into carefully scripted messages about community conditions and a nonprofit’s bold plans to address them. They revolved around two parties’ desire to harness their superpowers for good.
The proposal merely captured the conversation.
Partners in Bold Plans
The largest foundations are under scrutiny by this administration. Their employees are feeling the strain. It’s okay to show empathy. You can also be bold. Your nonprofit is under its own strain.
The most successful major grant professionals allow funders to dream alongside them before diving into budgets and timelines.
Change is everywhere, but this truth remains: Success lies in bold plans and deep partnerships. Our chaotic world keeps many from tackling this core work. Those who maintain focus will benefit from the record wealth flowing into and out of foundations.
I'm forwarding this to my nonprofit clients. It's the most useful (and eminently tactical) piece I've read in a long time, a veritable playbook for nonprofit fundraising -- with a whole lot of much-needed optimism thrown in.