How to Decide Which Grant Opportunities Are Worth Pursuing

There’s a common dilemma that comes up for nonprofits: everybody needs more grant funding, and there appears to be no shortage of grant opportunities out there.

But when your organization applies for everything, the funding still doesn’t appear!

One of the first things I do when I work with a new client is not only to identify the need for grant funding, but also the right place to look for grants. Applying for everything - and putting time into too many long-shot opportunities - is an easy way to burn out a development team and fall short of your fundraising goals.

I sometimes call this my Prince Harry problem. Years ago, a well-meaning volunteer at a mental health organization I worked with excitedly told me that Prince Harry was giving money to support mental health organizations. That’s great, but there’s one problem - I don’t have a contact with the royal family! I could spend days pursuing that lead and likely end up with nothing to show for it.

Those rabbit holes are common and risky. Spend too much time going after the big fish and you may not catch anything at all.

Below is a practical framework for making that call. It works whether you have a full development team or one person wearing several hats.

1. Check mission and program alignment

Start with fit. Ask whether the funder's priorities match the work you already do, not work you could stretch to describe. Read the funder's mission, recent grant announcements, and guidelines before you read anything else. 

If you have to reshape a program to fit a funding opportunity, you risk mission drift, and the application tends to read as forced. A strong opportunity lets you describe your real work in your own words, including how the community you serve shapes it.

2. Confirm eligibility and funder priorities

Eligibility is a pass-or-fail gate, so check it early and read the guidelines all the way through. Restrictions often sit in the fine print. Confirm each of the following:

• Geographic area the funder serves

• Organization type and tax status

• Any budget size or years-in-operation requirements

• Populations and program areas the funder supports

• Whether the funder accepts unsolicited applications or requires an invitation or letter of inquiry first

• Restrictions on how funds can be used

If you fail any one of these, stop there. No amount of strong writing will fix an ineligible application.

3. Weigh the effort against the likely return

Estimate the full cost of applying, including research, writing, budget development, attachments, letters of support, internal approvals, and the reporting that follows an award. Then compare that effort with the size of the award and how realistic your chances are.

The funder's own materials can help you judge this. Look at recent grantee lists and typical award sizes. Private foundations file Form 990-PF with the IRS, which lists the grants they have paid, so you can see who they fund and at what level.

A smaller grant with a short application and a funder who already knows your work can be a better use of time than a large, highly competitive one. The goal is a good return on your team's hours, not the biggest number.

4. Look at the funder relationship and giving history

Ask what connection you already have with the funder. Have they funded you before? Do they fund peer organizations you know? Does a program officer or board member know your work?

Then look at their giving pattern. If a funder mostly renews the same grantees year after year, a cold application may be a long shot. If they regularly fund new organizations at your size, the odds may look better.

When a funder welcomes conversations, a short call before you apply can clarify priorities and save weeks of effort. Always follow the funder's stated guidelines on contact. Some funders invite questions, and others ask applicants not to reach out.

5. Assess capacity, timing, and reporting requirements

A grant is only worth pursuing if you can apply well and deliver well. Before you commit, ask:

• Do we have the staff time to write a strong proposal before the deadline?

• Are the budget, financials, board list, and evaluation data we need already on hand?

• Can we deliver the program as proposed if we are funded?

• Can we meet the reporting requirements, including how often and in what format?

• How are funds paid, and do the payment terms work for our cash flow?

• Does the grant require a multi-year commitment we are prepared to make?

An award you cannot manage well can strain your team and your relationship with the funder.

Focus on the grants that fit

Saying no to the wrong grants frees your time and energy for the right ones. A consistent way to evaluate opportunities also helps your team make decisions faster and explain those decisions to your board and leadership.

If you would like help researching funders, building a grant calendar, or deciding where to focus your grant efforts, we would love to talk. Contact Team Kat & Mouse to start the conversation.