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What Are the Six Common Reasons Projects Get Rejected for Funding?

Two hands grabbing a $100 bill.
The pursuit of grant funding is highly competitive. (Photo by Adobe Stock)

A prevalent misunderstanding is that securing grant funding is easy and there are countless pots of money waiting to be claimed. You’ve got a great mission, vision, and plans to make your piece of the world better. You, or the grant writer you hired, have developed and submitted a grant application you’re proud of so who wouldn’t want to fund your project?

Then, a couple of months later, you learn your project wasn’t selected for funding. Why?!


Because the pursuit of grant money is a highly competitive process regardless of the type of funding – foundation, state, or federal – you’re seeking. Let’s take a closer look at six variables that may result in your project not being selected for funding, some of which is beyond your control.


  1. Data is King: Funders expect well-written, detailed, and data-driven proposals. Nonprofits must not only demonstrate a significant need (backed by data from credible sources) but also prove their capacity to deliver impactful results (ex., number of people served, percentage of successful outcomes, etc.).

  2. Limited Funding Availability: Grant makers receive hundreds, sometimes thousands, of applications for a limited pool of funds. This means that only a small percentage of applications are awarded, making it highly competitive. In most cases, state and federal grant announcements will indicate the expected number of awards to be issued. Although there is no standardized tracking for the ratio of grants awarded to the total number of requests submitted, the Grant Professionals Association indicates the national average for win rates to be between 10%-30%.

  3. Competing with Similar Organizations: Many nonprofits share similar missions and are often competing for the same limited resources to fund similar programs. This is more prevalent when competing for state and federal programs that are seeking to fund organizations addressing specific needs. One example is the Substance Abuse and Mental Health Services Administration (SAMHSA), a federal agency within the U.S. Department of Health and Human Services, with grant programs focusing on advancing behavioral health across the nation.

  4. Strict Eligibility Criteria: Many grant programs have very specific requirements and eligibility criteria. Nonprofits must ensure that their projects align with the funder's priorities and objectives, and even when they do, other organizations may have similar qualifications.

  5. Repeat Applicants: Some organizations may have already established relationships with funders, making it harder for new applicants to stand out, even if their program is equally deserving.

  6. Application Reviewers: A group of individuals, whether it's the foundation board or peer reviewers, will evaluate and score the proposals. It's important to remember that they are people with their own individual experiences, interests, and pet causes, that may influence their scoring. For example, a reviewer who benefitted from an after-school program in their youth may favor projects that support similar programs. That personal connection could be the deciding factor when considering other strongly competitive proposals.


In conclusion, the significance of thorough research and thoughtful preparation in creating a standout grant application cannot be overstated. By focusing on these variables, you can elevate your proposal above the competition and increase your chances of securing the funding you need.


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