They SHOULD Fund Us!
- Michelle Crim, CFRE
- Apr 4
- 2 min read
They SHOULD Fund Us!
Nonprofit leaders pour their hearts and energy into their missions. They see firsthand the impact of their work and naturally believe that funders should support them. After all, the need is real, and the programs change lives. But the hard truth is, just because a nonprofit believes a foundation, trust, or corporate donor should fund them doesn’t mean they will—or even can.
Take this common grant denial response: "We are very involved in programs similar to yours and have fully allocated our budget for the year."
On the surface, this might sound like a polite brush-off, but this statement highlights a fundamental disconnect between how nonprofits see funders and how funders operate.
Why Funders Say No (Even When They Love Your Work)
Nonprofits often think funding decisions are based primarily on merit—if the work is solid and the impact clear, funding should follow. But funders have their own constraints and priorities. Here’s what’s happening behind the scenes:
Limited Funds, Hard Choices
Funders receive far more requests than they can possibly fund. A foundation that gives out $1 million annually might receive $10 million in requests. Even strong, mission-aligned organizations won’t all make the cut.
Pre-Set Funding Priorities
Many funders focus on specific areas—education, healthcare, the arts—sometimes even within strict geographic boundaries. If a nonprofit falls outside these priorities, no amount of great work will change the outcome.
Long-Term Commitments
Some funders allocate a large percentage of their budget to multi-year commitments. A grant that seemed “available” may already be earmarked for ongoing support to past recipients.
Portfolio Balance
Funders often aim for a diverse mix of grantees. If they’re already supporting similar programs, adding another could limit impact elsewhere.
Internal and External Pressures
Foundations answer to boards, investment returns, and strategic goals. Corporate funders consider branding, employee engagement, and even customer appeal. These factors shape decisions in ways nonprofits may not see.
Shifting from “Should” to Strategy
Instead of assuming funders should fund them, nonprofits must align their approach to funders’ realities. Here’s how:
Research Before Applying: Know a funder’s priorities and past giving patterns before submitting a request.
Build Relationships: Funders are more likely to invest in organizations they know and trust. Engage with them beyond the grant cycle.
Diversify Funding: Relying on one funder—or one type of funder—is risky. A strong mix of grants, individual giving, and earned revenue builds sustainability.
Follow Up and Stay in Touch: A “no” today doesn’t mean a “no” forever. Keep past applicants updated and look for new opportunities.
Successful fundraising isn’t about whether a funder should support a nonprofit. It’s about finding the right funders, making the right case, and understanding that funding decisions are rarely personal—they’re strategic.
Cheers,
Michelle Crim, CFRE
Dynamic Development Strategies can help. We offer coaching, grant writing, and fundraising services for our nonprofit clients. We specialize in small to mid-size organizations because we understand your challenges. Please contact us for more information.
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