What to know about seeking foundation grants right now

This year is proving to be a deeply challenging time for nearly all nonprofits, and the situation is particularly urgent for organizations that abruptly lost their federal funding. In a recent Candid webinar, Funding Beyond Federal: How to Diversify Funding to Ensure Stability in Uncertain Times, we asked participants to share one word to describe how the current funding environment felt, and the top three responses stood out loud and clear: “scary,” “chaotic,” “uncertain.”  

With a vital funding stream unexpectedly taken away, many nonprofits hope to pivot to seeking foundation grants. But what does the foundation funding landscape look like today? And how can nonprofits best adapt to the current situation?  

What’s different about seeking foundation grants today? 

According to the Council on Foundations’ (COF) March member survey, 80% of funders were considering making at least one change to its work, including 27% planning to increase their grantmaking budgets. Meanwhile, the possibility of higher taxes on foundation investment income is adding to the uncertain outlook. Here’s what to keep in mind when seeking foundation grants:  

1. Foundations are beginning to provide more, and more flexible, funding: 39% of COF survey respondents planned to increase flexibility in their grantmaking processes, which may mean more unrestricted grants and less onerous reporting requirements.  

2. At the same time, competition for grant dollars will get even fiercer as more organizations pivot into the foundation grants space. Also, the fact that 44% of funders in the COF survey said they were considering shifting their giving priorities to fill urgent gaps is a mixed blessing. While this means a lot of money will be moving toward the greatest needs, it also means some organizations could lose support from foundations they’ve long relied upon.  

3. How nonprofits frame their messaging is more critical than ever, given the higher stakes and heavy competition for foundation grants.  

How can my nonprofit adapt its messaging for seeking foundation grants in the current landscape?  

Now is the time to update your organization’s messaging so funders instantly understand the importance of your work—and the urgency of supporting it right now. Instead of taking the compliance- and output-focused approach required for federal grant applications, you’ll want to focus on rich storytelling when seeking foundation grants. Weave a compelling narrative that melds data and outcomes with a clear, logical, and ultimately readable story of how your organization’s programs create change. Aim to address the following questions:  

What are the most crucial pieces of the work you do? Start by focusing on your top priorities. Of everything your organization does, which elements are the heart and soul of your mission? The ones that donors and funders get most excited about?  

What impact does this work have on those you serve? Funders making difficult choices will be looking for programs with the greatest impact. How deep is the need in the community for the services you provide, and how powerful is the effect of your work on that community? While federal grants prioritize data and outcomes, foundations like to see that data coupled with stories that bring the outcomes to life in a vibrant way. Telling a clear and logical story of change enables funders to “see” the lives of those you serve, what their real needs are, and how your programs meet those needs, transforming communities. Keep the jargon and buzzwords to a minimum, so funders can easily understand your story regardless of their experience level in the subject area. The story you tell in seeking foundation grants should not only be persuasive and data driven; it should also be personally compelling.  

How is the current situation affecting your work? What’s keeping you and your staff awake at night? The loss of federal, state, or local funding or a potential future loss of those funding streams? The effects of electoral, judicial, or legislative decisions; or political divisions within your community or nationwide? What problems do these issues pose to your programs and/or mission? Open, honest communication is the most straightforward way to help funders understand what you’re wrestling with on a daily basis.  

What’s at stake? Looking at the big picture, if the most crucial pieces of your work fall victim to funding cuts, who suffers? What will the community look like without your programs or services? Tailor your approach to different funders, leaning into specific shared values. This way you’re not only explicitly communicating an urgent situation, you’re also homing in on an issue of specific interest to the funder.  

Is my messaging urgent but forward looking—or just desperate? This can be tricky, because maybe you do feel desperate! But if a funder senses that your organization is about to shut down, they’ll be reluctant to provide support. Try to emphasize that in spite of everything you’re up against, your organization has weathered challenges in the past and emerged stronger. Yes, you expect a hard struggle ahead, but you intend to weather these challenges as well and continue to serve your community for many years to come.  

These questions should help you make your case to foundations in this competitive environment. We know this guidance can’t solve all the problems nonprofits are grappling with in 2025. But organizations taking a tailored approach to funders with a compelling narrative and open lines of communication may be better positioned to secure foundation grants through the difficulties ahead.