September 23, 2019

We’ve begun to notice a pattern among foundations. Whether it’s a real trend or a pattern we observed because of the particular funders we’ve been researching recently, we’re not sure.

The pattern is this: We’re noticing that foundations increasingly appear to be moving from an open process—where they solicit grant applications through a published funding opportunity announcement (FOA)—to a closed one, where the foundation screens organizations and then invites a select group to apply for funding.

We first noticed this pattern as we started to research funding sources for inclusion in our new targeted funder lists.

While researching potential funders for the first three lists, we discovered that many of the funders we had initially identified for inclusion had since moved to an invitation-only application model. Our goal with the funder lists is to include only those funders that meet two criteria: 1) they accept applications from organizations based in the country in question; and 2) they post open calls for proposals (i.e., they solicit proposals through a publicly posted FOA). Because we kept coming across foundations that no longer post FOAs or accept unsolicited applications, developing the funder lists has taken much longer than we initially anticipated.

Perhaps you’ve observed a similar pattern of foundations moving to an invitation-only application process through your own research. If so, please let us know in the comments below. We’re curious whether others have also seen this pattern among funders.

While it’s discouraging to find that many foundations are no longer publishing solicitations or inviting grant applications from new organizations, their change in approach is understandable. Many foundations are overwhelmed by the sheer number of grant applications they receive, and being inundated with applications makes their work to identify the strongest applications—already a difficult and presumably tedious job—that much harder.

WHY A FOUNDATION MAY CHOOSE TO IMPLEMENT AN INVITATION-ONLY GRANT PROGRAM

Because foundations vary considerably from one another with regard to size, mission, and philanthropic approach, the reasons why one foundation chooses to adopt an invitation-only grant program can be very different from the reasons why another foundation has chosen to do so.

However, a common theme we’ve seen articulated by several foundations is the desire to reduce the administrative burden of reviewing applications. And it is a burden.

One of the foundations we came across recently—not even a particularly large or well-known foundation—said it regularly received more than 300 grant applications in response to a single call for proposals for one of its programs. This foundation has decided to move to an invitation-only application process to make their grantmaking process more manageable and to give their staff more time to build relationships with current grantees.

Several foundations said the main reason they no longer post solicitations is that they wish to foster long-term relationships with their existing grantees. Instead of making relatively small grants with project periods of 1–2 years to a large number of organizations, the foundations have chosen instead to fund a select group of grantees for longer project periods at higher dollar amounts.

If your organization happens to be one of the chosen grantees, this trend is could be welcomed news because it means your grant application will face less competition and already has favored status. The invitation-only system does present challenges though, particularly for nonprofits that lack established relationships with the donor community.

HOW CAN AN ORGANIZATION MEET THE CHALLENGES OF A “NO UNSOLICITED PROPOSALS" ENVIRONMENT?

When a foundation moves to an invitation-only model of grantmaking, it’s not all bad news. As we mentioned above, the invitation-only model can benefit organizations. If your organization is fortunate enough to be a current grantee when a foundation transitions to a closed-application model, you may not only receive an invitation to apply for continued funding but may also be eligible to receive a larger award than you’ve received previously.

The challenge for established and new nonprofits alike comes when an organization identifies a foundation that seems like a perfect fit, but the nonprofit has no connections it can leverage to secure an invitation from the funder. While not all of your attempts at gaining access to a funder will work out, there are a few things you can do to increase your chances of being noticed by a foundation.

Below we outline three strategies you can employ to raise your organization’s profile. You’ll see familiar themes in this list because the strategies to attract the attention of a specific donor are essentially the same ones we’ve frequently mentioned for marketing your organization’s work in general.

• Networking: If you want to connect to a new funder or to a funder that has moved to an invitation-only application process, look for potential ties to the funder that you can leverage. Do you know staff members at an organization that is a current or past grantee of the foundation? If so, these individuals can be a good source of information about the foundation's interests. They also may be willing to introduce you to the target foundation’s staff.

  • Partnerships: Partnering on a project with a current grantee of the funder is another way to gain access to the foundation. Partnerships can bring many advantages, especially to organizations that are attempting to make inroads with new donors. You can learn about several of these advantages in our post Focus on Partnerships to Increase Funding Options.

  • Connections through foundations: You can also look for personal connections to the foundation. For example, you could learn that a program officer based at a foundation where you have an active grant has close ties to someone at the target foundation, or that the two foundations share a board member. Working your connections is not a guaranteed way to gain access to a funder, but the donor community is a fairly close-knit group. Within specific program areas (e.g., climate change, reproductive health and rights, etc.), the foundations actively grantmaking in the area tend to know each other. If you have a positive relationship with one foundation, it can lead the foundation to recommend your organization to other funders.

• Publicizing Your Work: Making your local community, government representatives, and potential partners aware of your work is always a good idea.

  • Invest in communication activities: If you are trying to get an invitation to apply for a grant opportunity, publicizing your work is a necessary activity, not an optional one. If a funder doesn’t know your organization exists, they’ll never consider your organization as a potential grant recipient. Share your organization’s work in ways and in places that will make it easy for funders to find you. Examples include maintaining high-quality content on your website, posting on social media, and participating in relevant professional associations.

  • Leverage conferences: In addition to using all the standard outlets to share news about your organization such as social media accounts and an up-to-date website, if you’re planning to attend a conference that is frequently attended by foundations, try to find out if the foundation you’re interested in will have representatives at the conference. Many conferences include a list of conference attendees in the registration packet. If the foundation staff will be at the conference, you can seek openings to talk to them. Additionally, you might be able to showcase your organization’s work by participating in a poster session at the conference.

• Establishing Yourself as an Expert and Delivering High-Quality Projects: Funders want to invest in organizations that have the skills, knowledge, and experience to get things done.

  • Knowing the right people: When a foundation moves to an invitation-only application process, sometimes securing an invitation to apply for a grant depends more on who you know than what you know. For some foundations that use an invitation-only process, the only way an organization can receive an invitation is if a member of the foundation’s board nominates them. Fortunately, this does not seem to be the prevailing method. Most foundations appear to identify potential grantees through research conducted by foundation staff or through referrals from colleagues.

  • Establishing a reputation of excellence: In compiling a list of potential grantees, foundation staff may evaluate the organization’s reputation as a leader in its field and its success as a project implementer. If your organization is known for delivering high-quality, high-impact projects, your organization will be better placed to make it through this vetting process and receive an invitation to apply for funding. Likewise, if your organization is widely recognized for its technical expertise or specialized knowledge on a topic—perhaps serving as a “go-to” resource for the media—you stand a better chance of being noticed.

  • Finding a niche: If you think it would be difficult to position your organization as a go-to resource because your organization’s work is not unique, you might be able to position your organization as a resource on a niche topic.

    • For example, if your organization runs an animal shelter in a community where there are several similar shelters, you could attempt to separate yourself from the crowd by seeking to be an authority on the issue of rehabilitation of abused animals.

    • Once you’ve identified your topic, the next task is to make your expertise known. You can do this by writing op-eds, by giving presentations to local groups or at conferences, or by educating the broader public on the issue through social media and your website.

    Your goal through these activities is to establish your organization as an authoritative resource. When a foundation thinks about how it can move its mission forward in a given area (in our example, rehabilitating abused animals), you want the foundation to think immediately of your organization because your organization’s name has become inseparably linked to this issue.

WHAT NOT TO DO WHEN A FOUNDATION HAS MOVED TO AN INVITATION-ONLY MODEL

If a foundation explicitly states on its website that it does not accept unsolicited proposals and is not funding new grantees, respect the foundation’s policy. Even if you think a foundation should be funding you because you’re such a great match with their mission, do not send them a proposal outlining project ideas or your organization’s needs on the off chance they might read it.

There is one exception to this rule.

When a foundation states that it does not accept unsolicited proposals, but it leaves the door open a crack by posting an email address where organizations can send their project ideas for the foundation to consider, it may be worth submitting an email. The worst thing that can happen is that you won’t hear back from the foundation.

On the flip side, there is a chance, albeit a small one, that the foundation will be intrigued by your idea and invite your organization to submit a full proposal. However, note that if you’re seeking help with your organization’s general operating expenses, it’s highly unlikely you’ll be invited to submit a proposal through this type of opening. This is not only because funders are usually on the lookout for novel projects through this mechanism (essentially a suggestion box), but also because grants are not the best funding source to cover ongoing operating expenses. You can read more on the topic of grants and general operating expenses elsewhere on our blog.

The reality is that it takes time to build a relationship with a potential funder.

This is especially true if the funder is not actively soliciting proposals and appears to have limited its funding to a preselected group of organizations. You should always follow the funder’s lead. Do not submit a proposal if the funder has said they do not accept them, but do be proactive and look for opportunities to connect with the funder and the wider donor community to share your expertise and successes. The connections you form today may help you to secure access to new funding opportunities in the future.