Recently, we discussed the importance of trust-based philanthropy on our blog. As foundations with access to a plethora of resources, we must recognize the power dynamic inherent between foundations and grantees. In order to remedy any feelings of distrust, we must base our relationships in trust. At the basis of a trust-based relationship is communication.

Throughout the entire grant process, we must communicate with our grantees surrounding deadlines and grant requirements. After weeks or even months of back and forth, the grant cycle closes, and you must communicate grant approvals and declinations. It’s easy to communicate an approval, but how do you communicate a declination in a way that instills trust? Here are our tips…

Communicate the decision quickly. 

No one likes the waiting game. After exerting much effort in completing what can be a lengthy application, nonprofits are eager to hear the news. A “no” is never a good thing; however, it’s made easier if the nonprofit learns of this news sooner rather than later. This gives the organization time to focus on other funding opportunities.

Reiterate your focus areas.

Within the rejection letter, reiterate your focus areas. This ensures the nonprofit understands your mission and vision and where their work aligns or does not align with your work.

Share the reason why you declined. 

If possible, it’s better to share the reasoning behind the declination rather than a generic response. The reason may be due to a variety of factors including:

  1. The applicant’s organization did not serve the population your foundation serves.
  2. The organization’s work did not align with your focus areas.
  3. The applicant provided incomplete documentation.

Providing this information to the applicant demonstrates goodwill and allows the organization to make the appropriate edits and adjustments to its next application.

Offer support in completing the next application. 

Now, this tip may be a stretch; however, many organizations may be new to the grant application process. Consider offering a luncheon, meet-up, or webinar in which your team offers advice to applicants. This type of event will demonstrate your commitment to the nonprofit community. 

Share the names of other foundations who may have capacity to give a grant.

Foundations not only have access to financial resources but also human resources. If your organization cannot support a particular organization, turn to your rolodex and brainstorm a foundation that can support them. By sharing this information with the applicant, you work towards building a community of supportive philanthropic leaders.

Communicate the next upcoming deadline. 

If the applicant need only make a few adjustments to his or her organization’s application to qualify, share the next upcoming deadline with him or her. With advanced notice, the applicant can make the necessary adjustments and have a better chance of securing a grant the second time.

Thank them for applying.

Most importantly, thank the applicant for applying. There are a multitude of worthy organizations, and it’s impossible to fund them all. By recognizing the organization’s contributions to society, you encourage them to continue with their worthy mission and work.

The grant application process is time and resource intensive for both the grant-maker and grant-seeker. Foundations must remain sensitive to this strain on an organization. In order to ensure that each nonprofit that applies for a grant from your organization is qualified, consider adding a Letter Of Intent (LOI) process. This step provides the nonprofit the opportunity to describe their mission and their funding request prior to completing an entire application. If the organization does not qualify for a grant from your organization, the development team can focus on grants they can obtain.

Another qualification step to consider is a questionnaire at the beginning of the application process. The Jungle Lasers’ {g}grants software provides functionality to question applicants prior to beginning the application. This ensures that only qualified applicants complete the application process.

There are many incredible causes and organizations creating significant impact within the communities in which they operate. Unfortunately, you can’t fund them all nor should you. Grant declinations offer you the opportunity to build relationships with organizations, share your mission, and encourage trust-based partnerships with grantees.  

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