When Not to Request the Biggest Grant

As a nonprofit, it’s natural to dream of landing a large grant to fuel your mission and expand your impact. The appeal of a million-dollar grant is undeniable – it seems like the ultimate solution to funding your organization’s projects and initiatives. But what if applying for the biggest grant isn't always the best strategy?

It may seem counterintuitive, but there are times when it’s actually smarter to start with smaller grants. Here's why:

The Paradox of Funding: Proving You Can Manage Money

You might be thinking, “If we need the funding to carry out our work, why wouldn’t we go for the biggest opportunity available?” The answer lies in the paradox that many grant seekers face: funders want to see that you can successfully manage money before they entrust you with a large sum.

Just like the old job-hunting dilemma – you need work experience to get a job, but need a job to get experience – grantors often require evidence that you can handle smaller amounts before considering you for larger investments. If you’re a newer nonprofit or haven’t secured many grants before, it’s especially important to build a track record of successfully managing smaller funding.

Building Credibility with Smaller Grants

When you apply for smaller grants, you have the opportunity to demonstrate to larger funders that you can effectively execute projects with limited resources. By successfully managing smaller amounts, you can show your capacity to handle the rigorous responsibilities that come with larger funding.

For example, if you’ve effectively used a $50,000 grant for a specific program, funders will be more likely to trust you with a $500,000 or $1 million grant because they can see you’ve already had experience managing a smaller budget and delivering results.

The Infrastructure Challenge: Do You Have the Capacity?

Another important consideration is whether your organization is equipped to handle a large grant. Does your nonprofit have the staffing, systems, and infrastructure to manage a substantial influx of funds?

With a larger grant, there are added responsibilities – you’ll need systems in place to track spending, monitor the project’s progress, ensure compliance with reporting requirements, and potentially hire additional staff. If you don’t have these systems set up yet, a large grant could overwhelm your organization rather than help it grow.

Also, consider how a large grant might affect your operations. If securing this large funding would double your annual budget, you may suddenly need to hire more staff, secure additional office space, or implement new financial management systems. The added complexity could divert your attention from your core mission and cause strain on your resources.

The Bottom Line: Grow Gradually

While the temptation to apply for large grants is understandable, it’s important to assess your nonprofit’s readiness. Starting small allows you to build experience, credibility, and infrastructure at a manageable pace. By working your way up, you’ll be better positioned to handle larger grants when the time comes.

When to Go Big

That said, there are times when applying for a larger grant might make sense – for instance, if your organization has reached a point where it’s confident in its ability to manage the additional resources, or if you’ve demonstrated success with smaller grants and are now prepared for more responsibility.

But unless you have a proven track record, it’s usually a safer bet to start with smaller amounts, prove your effectiveness, and then build up to larger, more impactful funding.

Takeaway: Start with grants that align with your nonprofit’s current capacity. As you build your organization’s ability to manage funds, you’ll be ready to take on larger opportunities with confidence, and funders will be more likely to trust you with their investment.

If you'd like personalized assistance with your grant writing, feel free to schedule a discovery call with me. I'd be happy to help you develop a compelling proposal and effective grant strategy.