March 5, 2026

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Why Do Some Nonprofits Give Up on Applying for Foundation Grants?

by Stephanie Wormington

Foundation grants are a significant revenue stream for many nonprofits, accounting for $104 billion, or 19% of total U.S. charitable giving, in 2023. Yet, our survey of nearly 4,000 U.S.-based nonprofits between August and October 2024 found that 9% hadn’t applied for any foundation grants between 2021 and 2023.

What barriers could prevent nonprofits from seeking foundation support, and what consequences can failed grant proposals have beyond finances? We asked 341 nonprofits that hadn’t applied for foundation grants their reasons for opting out.

Why don’t some nonprofits apply for foundation grants?

Lack of capacity was the most commonly mentioned barrier, cited by over half of nonprofits that didn’t apply for foundation grants. In comments, respondents described lacking staff, time, or resources to apply for and manage grants. “We don’t have capacity to manage grant reporting if we were awarded a grant,” one wrote.

Not knowing how to apply was the second most common reason, noted by over one-third of nonprofits. Many expressed uncertainty or intimidation around the application process. Nonprofits mentioned wanting clearer communications on whether foundations were open to unsolicited proposals, with one respondent sharing, “I called three funders and left messages but to no avail…. I wish I could simply reach out to any of the funders and simply get a ‘No.’”

Perceived ineligibility was cited by under one-third of nonprofits, citing barriers like legal structure, organizational age/size, niche focus areas, or religious affiliation. One representative shared, “Our work is such a small niche and I’m unaware of grants willing to fund a tiny nonprofit supporting a tiny village.”

Other barriers noted in comments included years of unsuccessful grant applications, poor program fit, and strategically prioritizing other fundraising approaches. Across their responses, a common thread emerged: After repeated rejections, the effort required to apply was no longer worth the potential payoff.

What happens when nonprofits are rejected for foundation grants?

Applying for, but not receiving, foundation grants created consequences that extended beyond budget shortfalls. To better understand how organizations were affected operationally, emotionally, and strategically, Read on...

PEOPLE ON THE MOVE

Since rejoining Interact for Health in 2022, Ashlee Young has stepped into a pivotal leadership role, driving the organization’s community engagement strategy.

Cincinnati Recycling & Reuse Hub names Chad Planner as its new Executive Director.

SPECIAL ANNOUNCEMENTS

The Victorian at Riverside is grateful for a $5,000 grant from the William P. Anderson Foundation to provide meals for older adults at its assisted-living facility in Covington, Kentucky.

Cincinnati Association for the Blind and Visually Impaired (CABVI) is grateful to The Unnewehr Foundation for a $20,000 grant in support of Early Childhood and Youth Services for children who are blind or visually impaired.

In partnership with the Contemporary Arts Center (CAC), Pones returns with the highly anticipated second year of “Eunoia,” a performance designed to foster community, celebrate artistic innovation, and support Pones’s ongoing mission. “Eunoia” puts the focus on joy as a powerful form of advocacy – as an act of protest – demonstrating that social justice can take the shape of resilience and celebration amid adversity. Performances will take place Saturday, March 7, 7:00pm and Sunday, March 8, 2:00pm in CAC’s Black Box Theatre.

Contemporary Arts Center (CAC) invites guests 21+ to experience “The (High) Art of Seltzer,” a guided tasting and gallery tour presented in partnership with Rhinegeist Brewery on Thursday, March 12 from 5:30pm to 7:30pm.

Just in time for Spring, ArtsWave, the region’s engine for the arts, joins Rust-Oleum and artist collective Often Seen Rarely Spoken (OSRS) to unveil Pineapple on Pizza, a new outdoor mural at The Gruff in Covington. The installation is part of Rust-Oleum’s “Spray It Forward” mural program, a national initiative that created murals across the country last year. Ribbon-cutting is Thursday, March 12, 10:00am.

Queen City Book Bank (QCBB) celebrated 40 years of literacy impact at its 4th Annual Gala for Literacy: One for the Books, held February 19th at the Hard Rock Casino Cincinnati. The milestone celebration brought together an incredible crowd of supporters from across Greater Cincinnati and raised an outstanding $525,000 to advance literacy programs throughout the community.

Square1 will host its annual NEXT Innovation Summit and Final Pitch Event on Thursday, March 12, 2026, 9:00am to 2:00p. at Thomas More University. The yearly pitch competition provides local high school students with the opportunity to share their innovations, learn from industry experts, and network with local professionals — all while competing for significant scholarships and cash prizes.

Springer School and Center expresses its gratitude to the Charles H. Dater Foundation for supporting financial aid for families at Springer Diagnostic Center. Because of this grant, more students received diagnostic evaluations and tutoring to help them navigate their learning challenges and regain confidence in the classroom and beyond.

FUNDING AND RESOURCE OPPORTUNITIES

Millstone Fund supports the Greater Cincinnati community in the areas of Health, Education, and Arts. With a strong focus on supporting the mental health of our community and increasing access to educational and art opportunities for all people, Millstone Fund is currently accepting LOIs until April 1st for their next round of funding. To learn more about Millstone Fund’s priority areas, grant types, eligibility requirements, and application process, visit here.

Zonta Club of Cincinnati is now accepting Spring 2026 Grant Applications. Greater Cincinnati based not-for-profit organizations may apply for grant awards ranging in the amount from a minimum of $500 to a maximum of $2,000 per funding cycle. The organization preferably is an IRS 501(c)3, local to the Cincinnati or Greater Cincinnati area and the majority of clients served by the organization must be women or girls. Grant Applications are due on or before April 1, 2026.

Elevar Fund's Open Call for Applications - deadline March 15, 2026. From early-stage support to established organizations facing a critical moment or looking to expand, we welcome hearing about how we can support creative solutions to today’s challenges. We invite proposals from existing 501(c)(3) organizations based in the Dayton and Cincinnati region. Our focus areas - Regenerative Agriculture & Environmental Concerns, Immigrant & Refugee Support Services, Entrepreneurship & Invention, Education & the Arts Grant awards will range from $1,000 to $10,000. To learn more and apply, visit our website: www.elevarfund.org

A Spring 2026 class at NKU will look at occupational therapy intervention and program planning for group and activity development. We are looking for community partners to help us teach our students. We would like to invite applications from nonprofits (or programs within nonprofits) that are focused on supporting psychosocial support and group opportunities towards building a stronger community. One agency will be selected by the students to receive a $2,000 grant to support the implementation of an occupational therapy-psychosocial health and wellness site objectives. Find more information here or contact Angela Boyd at boyda9@nku.edu.

PROFESSIONAL DEVELOPMENT

The Future of the Administrative Professional, March 6, 1:00pm EST. In today's fast-paced professional landscape, the role of the administrative professional is transforming rapidly. What once defined your responsibilities yesterday may no longer apply tomorrow. Digital transformation, AI integration, and automation are redefining how work gets done and the administrative field is no exception. The only constant now is change, and to thrive, administrative professionals must learn to adapt quickly, develop new competencies, and prepare for the unpredictable shifts ahead. Find more information and register here.

World Affairs Council is hosting an International Women’s Day networking event & panel discussion at Union Hall, March 10, 4:30pm - 7:30pm. Hear from Madeline Martini, the Head of Network of Cintrifuse Capital; Pam Rincones, Executive Director of the Hispanic Chamber Cincinnati USA; and Kelly Vanasse, Former Communications Officer/ SVP of P&G Beauty, Grooming & Health. Find more details and register here.

Covington Business Council Nonprofit Lunch & Learn: Navigating Capacity and Talent Strategies for Nonprofits; Tuesday, March 10, 2026 | 11:30am–1:00pm,Cincinnati, OH/Northern Kentucky. Today’s nonprofit leaders are navigating a rapidly evolving talent landscape shaped by workforce shortages, shifting expectations, and tighter budgets. Join Dean Dorton and Skillcloud HCM Solutions for a practical Lunch & Learn designed for nonprofit executive, HR, finance, and operations leaders focused on building strong, sustainable teams while remaining fiscally responsible. Attendees will have the opportunity to connect with peers and leave with actionable insights they can apply right away. Register here:

MAKE A DIFFERENCE

Passionate about civil rights and ready to make an impact? Become a Fair Housing Tester. In this flexible, part-time role, you’ll support investigations into potential housing discrimination and help ensure compliance with fair housing laws. Testers play a critical role in identifying unequal treatment of individuals in protected classes and advancing equitable access to housing. More info here.

Save the Animals Foundation is a volunteer-run, no kill shelter providing rescue and rehabilitation to alleviate the suffering of dogs and cats, while helping each animal find a loving home. We need weekly volunteers to assist in the daily care of the animals as well as other activities such as upkeep of the buildings and grounds, adoption activities, and working with community groups. Please see our website for more information and to sign up for a volunteer orientation.

When nonprofit leaders should think like creatives

Discover benefits of the creative paradigm for social impact.

Pivoting on reliance on federal funds to mission-aligned private donors Relying heavily on federal funds can feel like both a blessing and a limitation—providing stability for a time, but leaving you vulnerable when policies, priorities, or budgets shift.

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