Connections 2.0: How and Why You Need to Make Them
Mar 29, 2025
The Changing Funding Landscape
Funding for organizations has seen its ups and downs, and 2025 is no different! During the past few years, Covid-19 destroyed families and communities, the new administration is wreaking havoc on federal funding affecting millions of people, and at the same time, people began to have a more in-depth understanding of the realities of systemic injustice. These three co-morbid realities have changed the funding landscape for organizations. There is a noticeable shift in available funding resources as COVID-19 funding has dried up, Executive orders, DOGE, and tariffs are changing the economic landscape in ways we have never seen before.
Changing systemic barriers from the inside out takes time and organizational capacity. Through national medical scares, inflation, and multiple variants, it might mean that continued funding and support for multiple communities may not happen. These changes for very real needs mean that funding will be shifted from organizations that worked well prior to 2020 to new initiatives. A higher percentage of funding is expected to address more diverse and complex issues in society including the health of the nation.
In our 28 years in the grant profession, we have seen four Presidents come and go. The Great Recession and the 9/11 terrorist attacks. COVID-19. We have crossed some pretty rough terrain. We have the experience and know-how to help you take the steps you need to ensure that your organization is grant optimized. One step is to get to know your funder/potential funder(s).
So, how do I approach a Funder?
Approaching a funder effectively requires careful preparation and respectful communication. Begin by thoroughly researching potential funders to ensure alignment between their priorities and your organization's mission. Tailor your initial contact, whether it's a letter of inquiry or a Zoom meeting, to demonstrate a clear understanding of their funding goals. It’s imperative that you emphasize the impact of your proposed project, providing concise and compelling evidence of its potential outcomes. Then, you can focus on building a relationship, fostering open communication, and demonstrating your organization's commitment to accountability and transparency.
According to a source at CalNonprofits only 24% of funders accept uninvited (unsolicited) proposals. Only 10% of Government contracts are available for an open bidding process. Additionally, many funding organizations are understaffed; or have no staff. Recently we sent a short description of an organization to a potential funder and they responded with their standard “We think your program is great, but we receive many more grant applications than we can possibly fund.” We did not ask for funding or submit a grant application. Many people are already burned out, on different fiscal schedules, and the year is just getting started! Funders are people too. So how can we go about making meaningful connections with these people?
5 Ways to Make Connections
- Use your social media.
- Join networking groups.
- Ask potential funders if you can add them to your email list so that they receive consistent information about how you are meeting needs in the community.
- Invite funders to your in-person or virtual events (Not your annual gala, though).
- Find out who knows who in your networks
Why Are Connections So Important?
Simply put, funding connections make a huge difference. People who know and understand your mission and have the ear of a decision-maker can be the sole reason your funding request receives a yes or no. Ask your connection to champion your request for the funding organization you are applying to. Cultivate meaningful relationships with funders. Don't be like the friend that only texts when they need something. Building trusting relationships takes courage. Your investment of time can really pay off!
Connections with grantmakers are vital for nonprofits for several key reasons:
- Securing Funding:
- The most obvious reason is financial support. Grantmakers provide the funds that allow nonprofits to carry out their missions and programs.
- Building Trust and Credibility:
- A grant from a reputable funder adds credibility to a nonprofit's work. It signals that the organization has been vetted and deemed worthy of investment.
- Accessing Expertise and Resources:
- Many grantmakers offer more than just financial support. They may provide access to valuable expertise, training, and networking opportunities.
- Fostering Long-Term Partnerships:
- Strong relationships with grantmakers can lead to long-term partnerships, providing a stable source of funding and support over time.
- Increasing Impact:
- Grantmakers often have a broad view of the nonprofit sector and can help nonprofits connect with other organizations and resources, increasing their overall impact.
- Enhanced organizational capacity:
- Grantmakers can provide resources and support that help nonprofits to improve their infrastructure, governance, and strategic planning.
In essence, cultivating connections with grantmakers are crucial pathways for nonprofits to sustain their operations, expand their reach, and maximize their impact on the communities they serve. Beyond mere financial support, these connections provide access to valuable resources, expertise, and strategic partnerships. By fostering open communication and demonstrating accountability, nonprofits can build trust, enhance their credibility, and secure long-term funding, ultimately enabling them to more effectively serve their communities and achieve their missions.