When nonprofits think about foundation prospect research, the usual approach is to go big: search for the wealthiest, most well-known foundations that align with their mission and start planning the ask. But here’s the truth—bigger isn’t always better, and simply aligning on mission isn’t enough.
If you’ve ever spent hours compiling a list of prospective funders only to get a stack of rejection letters or radio silence in return, you might be approaching your research the wrong way. Let’s fix that.
The Biggest Foundation Isn’t Always the Best Fit
It’s tempting to go after the heavy hitters—Ford Foundation, Gates Foundation, MacArthur Foundation. They’re making transformational six- and seven-figure grants, so why not go after them? Because for many small and mid-sized nonprofits, these foundations are an impossible reach, at least for now.
Even if a large foundation funds work in your issue area, consider:
- Do you have the capacity to write a competitive proposal? Some large foundations require extensive pre-qualification, LOIs, and highly detailed proposals—efforts that can drain your team’s limited resources.
- Can you meet their reporting and compliance requirements? Receiving a six-figure grant may sound exciting, but if your organization lacks the infrastructure to track impact and financial reporting at the level they require, you could struggle to manage the grant.
- Does your budget align with their average grant size? If a foundation typically gives grants of $250,000 or more but your annual budget is $800,000, they may see you as too small to manage that level of funding responsibly.
Instead of chasing the biggest funders, look for right-sized foundations—those that give grants in a range that makes sense for your budget and capacity.
Look Beyond the Issue Area—Focus on Giving Patterns
It’s not enough to identify a foundation that gives to organizations working in your field. You need to look at how many gifts they make in your sector.
Consider this scenario:
- Foundation A gives large grants ($200,000+) to organizations working in education—but they awarded only two education-related grants last year.
- Foundation B gives smaller grants ($25,000–$50,000) but awarded 30 education-related grants last year.
Which foundation is more likely to fund your work? Foundation B.
A foundation’s giving history can tell you:
- How frequently they support your issue area (a few selective grants vs. broad, ongoing support).
- What types of organizations they fund (universities, hospitals, grassroots organizations?).
- The range of grant sizes they provide (is a first-time grant more likely to be $10,000 or $100,000?).
Pro Tip: Look at the foundation’s IRS Form 990 filings (available on sites like Candid/GuideStar) or their website’s grants database to analyze past giving.
How Much Do Personal Connections Actually Help?
A board member says, “I know someone on the foundation’s board!” That’s great—but does it actually matter?
It depends on how the foundation makes decisions:
- Some foundations have a strong relationship-driven approach. Knowing a trustee or program officer can significantly boost your chances of getting noticed.
- Others operate through a committee-based, highly structured review process. In these cases, even a strong personal connection may not override the formal selection criteria.
Before you rely on a personal connection, do your homework:
- Research whether the foundation has an open application process or only funds invited organizations.
- Look at who serves on the foundation’s review committee—are decisions made by a small group of trustees or a broader panel?
- Ask your contact about their experience with the foundation—do they feel their influence can meaningfully impact the review process?
If a foundation’s process is rigid and formalized, your connection might help you get a meeting—but it won’t necessarily get your proposal funded.
The Right Approach: A Holistic View of a Foundation’s Giving
Successful prospect research means looking beyond mission alignment to assess:
✅ Gift size – Does the foundation give in a range that makes sense for your nonprofit?
✅ Gift frequency – How often do they fund organizations like yours?
✅ Decision-making process – Is funding based on relationships, an open application, or a competitive process?
✅ Reporting requirements – Do you have the capacity to meet them?
By taking a strategic, right-sized approach to prospect research, you’ll spend less time chasing impossible funding opportunities and more time securing grants that are a great fit for your nonprofit.
What’s Next?
Instead of searching for the wealthiest foundation in your space, dig deeper. Analyze how they give, not just what they support. And if you need to refine your research process, start by looking at your most recent grant rejections—were you targeting funders that were never a true match to begin with?
Your Turn: What’s Been Your Biggest Prospect Research Mistake?
Have you ever chased a grant opportunity that turned out to be a bad fit? What did you learn from the experience? Share in the comments!
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