More Funding Isn't Falling From the Sky

I'm about to say something that might make a few nonprofit leaders roll their eyes, close this tab, or send me a strongly worded email, but I'm going to say it anyway:

Not every funding problem is solved by finding bigger grants.

One of the most common things I hear from organizations is that they want "more funding." No shit. I don't know a single nonprofit leader who has ever looked at their budget and thought, "You know what? We have enough money."

The problem is that many organizations define "more funding" as "more large grants," and that's where things start to get messy.

A handful of the nonprofits I work with are already funded by the largest foundations and corporations in their communities. They've built relationships with the major players, secured significant local investments, and established themselves as organizations funders know and trust.

Then comes the inevitable question: What's next?

The answer many organizations want to hear is that there's another list of six or seven-figure foundations waiting to be uncovered. They assume that if their grant writer digs a little deeper, attends a few more conferences, or buys access to the right database, suddenly dozens of new major funding opportunities will appear.

I hate to break it to you, but that's not how any of this works.

The reality is that most communities have a relatively small pool of foundations and corporations making substantial investments. Once you've identified and cultivated relationships with those funders, there often aren't 20+ more hiding around the corner waiting to be discovered.

Yet this is where I see organizations get stuck.

Instead of broadening their funding strategy, they become increasingly focused on finding the next large opportunity. A $10,000 grant suddenly feels too small. A $25,000 award doesn't seem worth the effort. Even a $50,000 opportunity gets dismissed because leadership is focused on finding the next six-figure win.

Before long, the organization has convinced itself that growth can only come from larger grants, and I don't think that's true. In fact, I think that mindset causes nonprofits to overlook a tremendous number of opportunities that could strengthen their funding portfolio.

Not every worthwhile grant comes from a major local foundation. There are regional funders, statewide opportunities, family foundations, corporate giving programs, and national funders making investments at a variety of levels. Are they always writing six-figure checks? Hell no… but that doesn't mean they aren't valuable.

Sometimes, 10 grants of $25,000 each will generate more revenue than a single six-figure opportunity everyone is chasing. Sometimes a smaller grant opens the door to a long-term relationship that grows over time. More often than not, diversification is also far more valuable than putting all your energy into finding one giant award.

What I really find ironic is that organizations will spend months searching for another major funder while simultaneously telling me there aren't enough opportunities available, when there actually are! The issue is that many nonprofits have become so focused on finding bigger grants that they've stopped recognizing other grants as meaningful opportunities.

To be clear, I'm not suggesting organizations should stop pursuing large awards. Growth is important, and ambitious goals are healthy. However, at a certain point, you've probably already identified most of the major funders in your community. Therefore, the challenge isn't finding another one; it’s building a funding strategy that doesn't depend on them.

Why? Because more funding isn't falling from the sky and it probably isn't hiding in a secret grant database, either.

More often than not, it's sitting in opportunities you've overlooked because they didn't seem big enough to matter.

If you're feeling stuck because you've already tapped into the major funders in your community, let's talk. At JAC, we help nonprofits build diversified grant strategies that support long-term growth instead of relying on a handful of large funders to carry the entire load.