Grant-Seeking Smarter, Not Harder: What Nonprofits Must Know About Funder Success Rates

When chasing grants, it’s tempting to aim for the most visible or seemingly lucrative opportunities—federal agencies or major private foundations. But what if the best opportunities lie elsewhere? All that glitters may not be gold after all.

Analyzing data from Instrumentl, here's what nonprofits should know to refine their grant-seeking strategies and secure better results:

Note - We released a full report on funder success rates and what that means for your grant strategy. ?? Find it here.

Key Insights From the Data

1?? State/Local Government Funders: The Unsung Heroes

• 52% Success Rate: The highest among all funders.
• 50% of Requested Amounts Awarded: More than any other category.
• Ideal for Community-Based Projects: These funders prioritize local initiatives, aligning well with nonprofits working on smaller geographic scales.

2?? Private Funders: The Popular Choice

• 30% Success Rate: A moderate success rate but still a common target.
• 26% of Requested Amounts Awarded: Higher than corporate or federal funders.
• Why So Popular? They’re perceived as accessible, with fewer regulatory hurdles and more approachable application processes.

3?? Corporate Funders: A Tougher Landscape

• 22% Success Rate: The lowest success rate.
• 11% of Requested Amounts Awarded: A significant drop compared to other funders.
• Takeaway: These funders are best suited for niche or highly targeted projects aligned with their corporate priorities.

4?? Federal Funders: Big Potential, Big Challenges

• 25% Success Rate: Lower than private and state/local funders.
• 15% of Requested Amounts Awarded: Despite offering large funding pools, awards often fall short of expectations.
• Pro Tip: Federal grants work best for large-scale projects and nonprofits with the infrastructure to manage complex requirements.

Actionable Steps for Smarter Grant Seeking

?? 1. Align Goals With the Right Funders: Evaluate whether your project goals fit local priorities (state/local funders) or broader national objectives (federal/private funders).

?? 2. Tailor Applications to Each Funder: Customize your narrative to demonstrate how your project aligns with their mission. For competitive grants, emphasize community need and proven impact.

?? 3. Diversify Your Portfolio: Relying too heavily on one type of funder (e.g., private or federal) can limit your options. Explore lesser-known but high-potential funders, such as associations or societies.

The numbers reveal that state and local government funders are statistically your best bet for higher success rates and better returns. However, these kinds of grants aren’t always accessible or relevant for your nonprofit. For that reason, don’t overlook private and federal funders for broader projects, provided you can manage the complexity.

Finding Relevant Grants by Investigating Peers

When looking for grants, the easiest way to find relevant funders is by looking at who's funding nonprofits similar to yours. Normally, you'd need to find your peer nonprofits, dig through their 990 filings to find who awarded them grants, and then research those funders to see if they're relevant to your nonprofit.

However, Instrumentl has made this process so much easier. Using Peer Prospecting, you can automatically source peer nonprofits and see who's funding them. This makes it 10x faster to find new potential funders.

Which funders are you focusing on—and is it time to diversify? Let’s discuss below! ??

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