How can my nonprofit survive (and thrive) in the 2025 grant landscape?
It’s no exaggeration to say that we’re witnessing a sea change in the grant world. And these changes are making the work of nonprofits even more difficult than they were to begin with. With cuts to Federal grant programs, economic uncertainty, and shifting funder priorities, just moving forward may feel like you’re navigating a maze through sticky mud in cement-covered boots.
But here’s the truth. Grants haven’t disappeared.
In the first quarter of 2025 alone, clients in my professional network secured over $10 million in funding. And these represent just a small slice of the nonprofit community in the United States. So the funds are definitely out there, despite all the chaos in the world.
But surviving and thriving in the current funding environment takes a strategic approach. Your nonprofit CAN move through all the uncertainty and come through these challenging times stronger than ever. Here are some suggestions to help you keep moving forward.
1. Examine (and challenge) your assumptions.
If you think that the cuts to Federal grant programs are going to result in a mad scramble to private foundation funding, foundations being inundated with applications, and competition for those funds overwhelming the amount of money available…
Well, you’re partly right.
With dramatically decreased funding from the Federal government, many nonprofits who have previously relied heavily on those funds – only to have them pulled – are looking elsewhere. And in terms of grants, private or corporate foundations are a couple of the places that people are turning to. And yes, the competition for those grant monies has unquestionably increased.
But it’s not a foregone conclusion that you will get trampled by the competition.
For one thing, the philanthropic sector is pivoting to meet the moment. The Trust-Based Philanthropy Project is an organization that was founded to advance grantmaking practices that facilitate trust and transparency between funders and nonprofits, and over 130 grantmakers have committed to support this movement. These practices include giving multiyear unrestricted funding, doing the homework, streamlining paperwork, being transparent and responsive, soliciting and acting on feedback, and offering support beyond the check — all intended to provide nonprofits with the flexibility and support they need to tackle the complexity and unpredictability of their work. Learn more at trustbasedphilanthropy.org
Also, be aware that funders see many grant applications crossing their desks that miss the mark and are denied funding. The reasons are abundant:
Lack of alignment with funder priorities.
The funder only supports projects in a specific geographic area, and your nonprofit is outside that area.
The questions on the application weren’t answered completely.
Application responses confused goals with objectives, outputs with outcomes, didn’t include a budget narrative, went over the word count, wasn’t proofread, or made any number of other common grant application mistakes.
Required documents were missing.
The application was riddled with grammatical and spelling errors.
The upshot? Don’t assume that there’s no point in applying because of the sheer numbers of applicants for a grant. Cross all your T’s and dot every last one of those I’s on your grant application. This alone will put you ahead of the competition.
And remember that there are funders who are looking to fund programs just like yours. The challenge is to find them.
2. Diversify your funding sources.
The changes in the grant world underscore a fact that most nonprofits should already be factoring into their funding approach: grants should account for no more than 10% of your revenue.
And if you’re scrambling now, chances are you were relying too heavily on grants in the first place.
But it’s not too late to make adjustments. Now is the time to build out your funding assets, from individual donors to fundraising events to memberships to merchandise to corporate sponsors. Draw heavily on your board to help you with these efforts.
And this may be a good time to look at the composition of your board and how involved they are in your fundraising. If they are not participating in this vital area of supporting your programs, replace them with board members who are invested in the success of your organization’s mission and will pull their weight to help you reach your funding goals.
In short, pivoting to alternative fundraising approaches can make all the difference in sustaining your programs.
3. Nurture relationships with existing funders.
Organizations that secure consistent grant funding don't just write better applications. They build better relationships. How do they do this? It’s not rocket science. It’s mostly common sense and connecting the dots.
They connect with program officers before submitting.
They ask questions about priorities and fit.
They seek feedback on declined proposals.
They engage with funders even when not applying – sending on their newsletters, inviting program officers to their events, sending a quick email every so often to keep them updated on activities and programs.
The short of it is that it’s important to change the way you look at grantwriting. Instead of a technical exercise, think of it as a relationship-building opportunity. Remember that grant applications are not read by algorithms, but by people.
Here’s a perspective from an actual donor. Lara Grauben, Associate Director of Grants & Awards at Atlas Network, shared this on LinkedIn:
“Of the 172 non-profits in my funding portfolio, I receive regular updates from less than 10% of them. Some organizations worry about overwhelming their donors and barely communicate outside of formal reports. Others go in the opposite direction, adding donors to weekly newsletters or sending frequent updates. Then there’s a third group of partners who share spontaneous updates when something exciting happens. Personally, I don’t mind a full inbox as long as the updates are meaningful. In fact, these updates help me feel more connected to the partners I support. They give me insight into their challenges and successes, and they help build a stronger relationship beyond the grant report. When I see their work in action, it reinforces why I support them in the first place.
That said, not every donor feels the same way. Some prefer concise updates, while others enjoy regular check-ins. The key? Ask.
A simple, “How do you prefer to receive updates?” can go a long way in strengthening your donor relationships. When done right, regular communication doesn’t overwhelm, it engages.”
4. Build relationships with potential funders.
See #3.
5. Work with The Grant Muse.
Are you still using Google to search for grant opportunities? Is your executive director spending their evenings and weekends writing grant applications – while at the same time leading programs, managing operations, and maintaining relationships with community partners?
Are you using a “spray and pray” approach with grants, applying for everything that’s out there, regardless of whether it’s a good fit? Do you feel stale, stuck and tired with the way you’re approaching grantseeking?
These methods are wasting your time and your energy, and likely not moving you closer to your goal.
At The Grant Muse, we have the training and the experience to identify the best strategies for your organization and can model best practices for increasing revenue.
If you are a small, cash-strapped nonprofit and don’t think you can afford a grantwriter, think again. What’s the cost of remaining stuck? What is it worth to you to make an investment that can move you closer to your goal? A fresh set of eyes and a new perspective can work wonders to turn things around.
When you work with The Grant Muse, our fees won’t break the bank. We work within your budget with a custom package that will help you move forward.
In addition, you only pay for the services you need—no overhead costs, salaries, or benefits. We focus on securing funding that can more than cover our fees.
In other words, working with The Grant Muse is an investment in your organization’s success.
Hit “refresh” on your grantseeking strategy! Reach out to The Grant Muse and schedule a sales discovery call. We look forward to partnering with you.
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