Tips for seeking foundation grants in a time of crisis

As federal funding cuts, freezes, and executive actions create uncertainty across the sector, many nonprofits are struggling to find the resources they need to serve their communities. Roughly 30% of U.S. nonprofits report receiving government grants. Some are learning, with no advance notice, that this funding has been revoked or eliminated going forward. Some nonprofits anticipating reimbursement from such grants may have already spent funds from this year’s budget. In other words, many organizations are facing a funding crisis.

For some—though not all—nonprofits, foundation funding could be an option to help fill the funding gap, at least in the short term. Seeking foundation grants require a different approach from applying for government grants: one that is grounded in relationship building and trust. Whether you currently have foundation funding or are exploring it for the first time, here are some tips to refine your strategy.

If your nonprofit already has foundation funding

Leverage your nonprofit’s established relationships with funders. Connect with your program officer or foundation contact and clearly articulate the needs of your organization and the communities you serve:

1. Seek new funding initiatives. Many foundations are “meeting this moment” by providing increased and/or more flexible funding. Make sure you’re scanning news sources, email lists, and social media to stay up to date on new initiatives or grant programs from funders in your geographic or issue area.

2. Ask for multiyear, general operating support. You may not yet know the extent of the long-term impact of federal funding cuts on your organization. When appealing to your funders, however, you should frame your need at the organizational sustainability level, not just the acute, program-level gap left by the cuts. Whenever possible, lead with a request for multiyear, general operating support. Factor in cost increases (i.e., inflation) of 3% to 5% for future-year budgets.

3. Seek advice as you finesse your grant request. If restricted funding is the only option per the foundation’s guidelines, work with your contact or program officer to shape your proposal and budget so potential funding is budget relieving—meaning it will support work your organization is already doing or has committed to. You shouldn’t be creating a new program just to secure a grant.

If you’re new to seeking foundation funding

Getting “grant-ready” is important preparation, but making the effort to secure new relationships with foundations is just as critical. Work with your organization’s leadership and board to leverage existing connections and secure introductory meetings. These conversations can happen concurrently as you build your lists of prospective funders and sharpen your proposal writing skills. If you’re new to the process of applying for foundation grants, Candid offers free tools and resources that can help you get up to speed.

1. Update your nonprofit’s Candid profile and earn a Seal of Transparency.

2. See if you’re eligible for Candid’s Go for Gold program. If your nonprofit has annual revenue or expenses of less than $1 million, you can receive a free year of access to Foundation Directory Professional when you earn a Gold Seal of Transparency or higher. This tool enables nonprofits to search for potential sources of foundation funding using multiple criteria.

Candid will also extend complimentary access to Foundation Directory Professional to organizations with under $10 million in annual revenue that have lost federal funding and have earned a 2025 Gold Seal of Transparency. Learn more.

In searching for and approaching funders who may be a good fit, start local. You may not always be a perfect match on paper, but in this moment of crisis, your local funders may have launched special or flexible opportunities to better meet the needs of your shared community.

3. Search for a Candid community location in your area. Candid partners with hundreds of organizations such as libraries, community foundations, and other nonprofit resource centers to offer free public access to Foundation Directory and GuideStar. Often the staff at these locations—librarians or other knowledgeable local professionals—are well informed about your area’s funders or can facilitate connections with other resources.

4. Get up to speed on grantseeking and proposal writing. From proposal to stewardship, foundation funding differs in many ways from federal funding. Candid Learning offers free training, webinars, knowledge-based articles, and other resources to help you and your team improve funder prospecting, proposal writing, and budgeting skills.

As a nonprofit ourselves, we understand the serious threat posed by losing an entire revenue stream. In these challenging times, Candid is working to be responsive to the sector’s needs and currently working on expanded ways to provide support. We’ll continue to share tips and resources to help nonprofits affected by ongoing challenges in the coming weeks.