Too Many Requests, Not Enough Funds
Jul 26, 2025
We've all seen this lately, maybe now more so than ever, because of the executive orders and decreased federal funding. More funders are reporting receiving hundreds of applications and only disbursing 20-30 awards, or fewer. Recently, one funder we applied to mentioned they received over 800 applications and would only be able to fund 25 organizations. In the increasingly competitive grant landscape where the common refrain is "too many requests, not enough funds," building strong relationships with potential grantmakers transforms an organization from an unknown applicant into a trusted partner. Rather than being just another proposal in a pile, a nonprofit with a pre-existing relationship gains an invaluable advantage. These relationships allow grantmakers to understand the organization's mission, impact, and unique strengths beyond the confines of a written application. Through ongoing communication, informal meetings, and invitations to see programs at work firsthand, funders develop a deeper understanding of the organization's needs and capacity, fostering a sense of familiarity and trust that can be a deciding factor when resources are scarce.
So, Do Relationships Really Matter?
The answer to this question is: Yes! As Grant Professionals, we know in our hearts that funder relationships matter. In the United States, there are more than 1.8 million registered non-profits. Because it's so competitive to obtain funding, organizations have to stand out from the crowd. One way to do that is by building a relationship with potential funders. Getting to know a funder helps you to understand their mission, goals, and vision for giving. Critical to long-term strategies is allowing a prospective grantmaker to understand the work that your organization does. From the feasibility study to compliance, each step in our Grantegy Process tangibly or intangibly affects relationships with funders.
Furthermore, a cultivated relationship provides opportunities for dialogue that can help a nonprofit tailor its requests to a funder's evolving priorities and specific interests. When a funder understands the nuanced challenges an organization faces and the innovative solutions it proposes, they are more likely to see the value in investing. This two-way street of communication enables nonprofits to gain insights into a funder's strategic goals, allowing them to frame their proposals in a way that resonates more deeply than a generic application. Ultimately, in a crowded funding environment, it's these established connections and shared understanding that can elevate a request from being simply one of many to becoming a preferred investment for a grantmaker.
Where Do You Start?
When reaching out to potential grantmakers, you must do your research to make an effective introduction. Funders want to know that you took some kind of effort to identify and understand their mission and the role their funding will play in your organization if awarded. Here are 9 introduction strategies to help you get started!
- Look for common connections through LinkedIn and other social media tools.
- Be proactive but not annoying. Contact the funders when possible. Some will not accept phone calls or emails. What do you do then? Send one-pagers, which are brief, visually pleasing introductory messages about your organization.
- When you do connect with someone, listen to the funder's feedback.
- Ask clarifying questions, lots of questions.
- Respect their time and don't become needy.
- Try having program staff present during the conversation to speak to the program specifics in the meeting.
- Send a thank you note/email
- Put them on your mailing list, and invite them to your social media sites, where you will eventually brag about their gift endlessly. Invite them to your special events, NOT your annual gala, but another event/meeting that might resonate with the funder. Find out what else matters to the grantmaker.
- Ask grantmakers for feedback when the grant is awarded. Find out what was strong (Why they gave the award) and what could be improved upon. This could become a repeatable process.
Building relationships with grantmakers is paramount for potential grantees because it moves beyond the transactional nature of an application process and fosters a deeper understanding between both parties. Grantmakers are more likely to invest in organizations they know and trust, and these relationships provide invaluable opportunities for grantees to demonstrate their mission, impact, and capacity firsthand. This familiarity can lead to tailored advice on proposal development, insights into funding priorities, and even direct invitations to apply for specific initiatives. Ultimately, a strong relationship can transform a potential grantee from an unknown applicant into a recognized partner, significantly increasing their chances of securing vital funding and fostering long-term collaborations.
If we're going to progress with some of the deeply ingrained, systemic inequities in our society and make an impact in the communities we serve, we must adapt to the current funding landscape. That's where relationships and building trust come in. "By engaging foundation funders in this way, you'll increase the likelihood that your organization will get funding, and keep them better informed about what their grants make possible, and you'll secure valuable feedback about your project" (Instrumentl, 2023). When funders consider giving to an organization, they want to make sure projects are worthy and they can actually see that impact within the targeted community. Communication and investing in building sustainable relationships can prove to be fruitful for all parties involved and ultimately help many more people in need.
Resources
https://www.instrumentl.com/blog/how-to-build-grant-funder-relationships