Grant Fundraising 101 – Strategies in 2025

Securing grant funding is a cornerstone of many nonprofits' growth strategies. In the United States, grants can finance new programs, support capital projects, and add stability to budgets. However, winning grants is highly competitive and influenced by evolving political priorities. This guide provides a comprehensive overview of how grants work for nonprofits, a step-by-step approach to accessing and applying for grants, strategies for successful grant writing (and pitfalls to avoid), real-world case studies of grant success, and insight into how U.S. political changes in 2025 are shaping the grant landscape.

Understanding Nonprofit Grants

What are grants? Grants are financial awards given to organizations (often nonprofits) by governments, foundations, or corporations to fund specific projects or purposes. Unlike loans, grants don't need to be repaid; instead, the grantee is expected to use the funds according to the grant's terms and report on outcomes. Grants are typically sizable enough to be considered major gifts and are awarded through a formal application or proposal process. They often come with restrictions on use – funders may stipulate that money be spent on a particular program or initiative, or require adherence to certain conditions and reporting requirements.

Types of grantmakers: Nonprofits can pursue grants from several sources:

• Foundations: These include private foundations (funded by individuals or families) and public foundations that aggregate public donations. Foundations exist to support charitable causes and often focus on specific issue areas (education, health, etc.). For example, the Bill & Melinda Gates Foundation awards grants targeting poverty, disease, and inequity worldwide. Foundations must distribute a minimum of 5% of their assets annually by law, which for large foundations means substantial grant funding each year.
• Government: Federal, state, and local agencies offer grants to nonprofits for public services, research, community development, and more. Federal grants (listed on Grants.gov) support a wide array of causes, from the arts to security. In 2024, for instance, the Federal Emergency Management Agency's Nonprofit Security Grant Program made $454.5 million available to help nonprofits protect against terrorist threats.
• Corporate: Many corporations have philanthropic arms or grant programs supporting communities or causes aligned with their business values. Examples include tech companies funding STEM education and banks funding economic mobility programs. In 2024, TD Bank awarded ten $1 million grants to nonprofits through its TD Ready Challenge, supporting solutions for underserved small businesses (Grants for Nonprofits: How to Get Free Funding in 2025 - NerdWallet).

How grants function for nonprofits: When a nonprofit receives a grant, it's usually restricted to a particular use or project. Unlike general donations that can fund overhead or any need, grant funds must be applied as proposed (e.g., running a specific program or building a facility) and carefully tracked. Nonprofits often must meet conditions before accessing funds (for example, raising a matching amount or achieving certain milestones). They also must report back to the funder on how the money was spent and what outcomes were achieved, ensuring accountability.

Grants offer significant benefits to nonprofits: they inject interest-free capital without diluting ownership or incurring debt, confer credibility (a grant signals to other donors that your organization has been vetted and deemed worthy), and can raise public awareness through announcements and media coverage. A grant award can even lead to more funding, as many foundations view previous grants as a sign of trustworthiness and impact.

However, it's important to recognize that grants are not "free money" or a quick fix. They are highly competitive – only about 1 in 10 grant proposals is accepted on average. The process of securing a grant is challenging and time-consuming, often requiring weeks or months of preparation and writing for each proposal. According to industry data, a typical foundation grant proposal takes 15–20 hours to prepare, and a federal grant can take over 100 hours. Especially for newer or smaller nonprofits, it can take over two years to secure a first grant award. Even then, the grant amounts might be relatively modest: nearly two-thirds of nonprofits receive only about $5,000 to $15,000 per grant on average, and get just a few grants per year. Grants also usually cover specific programs, so they seldom fund all operating costs.

In fact, grants typically comprise a minority of a nonprofit's funding. Studies show that roughly 20–25% of the average U.S. nonprofit's revenue comes from grants (combined foundation and government), whereas over half comes from individual donors. Grants should therefore be one pillar of a diversified fundraising strategy – a valuable boost for mission-critical projects – but not the sole source of income. Nonprofits must invest effort into grant seeking strategically, balancing it with other funding streams.

Finding Grant Opportunities in 2025

Identifying the right grants to pursue is the first critical step in grant fundraising. With thousands of grant programs out there, nonprofits need to target opportunities that fit their mission, programs, and capacity. Here's how to find and access grant funding:

• Grant databases and search platforms: Take advantage of online tools that aggregate grant listings. The official federal grants database is Grants.gov, which lists all U.S. federal government grant opportunities and allows filtering for nonprofit-eligible grants. For foundation and corporate grants, databases like Candid's Foundation Directory Online, GrantWatch, and others compile grantmaker profiles and current funding opportunities. These resources save you from scouring dozens of individual websites. One standout resource is GrantGet, a platform specifically designed to help nonprofits discover relevant grant opportunities across public and private sources. GrantGet allows organizations to filter grants by focus area, location, funding amount, and eligibility, all in one place – making it easier to find "best-fit" grants without hours of research. By using such tools, nonprofits can streamline their grant search and ensure they don't miss opportunities that align with their work.

• Local and state resources: Don't overlook regional funding opportunities. Many community foundations and state agencies offer grants to local nonprofits. State nonprofit associations often provide links to state-specific grant databases or newsletters with grant alerts. For example, your state arts council might have grants for cultural organizations, or a city's community development office might run grants for local service providers. Regularly check the websites of relevant agencies or join local nonprofit networks to hear about these opportunities.

• Prospect research strategy: Be specific in your search. Look for funders whose interests align closely with your mission and programs. A useful tactic is to combine your cause and location in search queries (e.g., "youth education grants in Texas"). This can reveal regional foundations or corporate programs targeting your community. As you identify prospects, vet the opportunity to ensure it's a good fit. Read the grant guidelines and ask: Does the funder's purpose align with our mission? Are we in the right geographic area? Is the funding amount appropriate for our project size? Will this grant cover what we need (e.g. program costs) without excessive restrictions? Carefully evaluating fit saves time by focusing your efforts on grants you have a strong chance of winning.

• Eligibility and registrations: Before you can apply, make sure your nonprofit meets all eligibility requirements. Common prerequisites include 501(c)(3) tax-exempt status, a certain length of operation or budget size, or specific community ties. For federal grants, your organization must have a Unique Entity ID and be registered in the System for Award Management (SAM) and on Grants.gov. It can take weeks to complete these registrations, so handle them early. Likewise, some foundations may only fund organizations in certain states or with certain demographics – verify these criteria upfront.

• Grant calendars and alerts: Grants often have fixed application cycles (annual or quarterly deadlines). Create a grant calendar to track when to prepare and submit each application. Many platforms (including GrantGet) allow you to set up email alerts for new grants in your category. Staying organized with deadlines ensures you don't miss out simply because of timing.

In summary, cast a wide but targeted net when searching for grants. Utilize centralized databases (Grants.gov for federal, and platforms like GrantGet for foundations and others) to efficiently find opportunities. Then focus on those grants that best match your nonprofit's focus and capacity – this alignment is crucial for success.

Step-by-Step: Applying for a Grant

(Concentrated female entrepreneur typing on laptop in workplace · Free Stock Photo)Applying for grants involves multiple stages – from gathering information to writing and submission – and each step must be executed carefully. Here is a step-by-step guide for nonprofits on how to access and apply for grant funding:

1. Research and Identify Grants: Begin with the prospect research described above. Using grant databases and searches, list out potential grants that fit your project and organization. For each opportunity, read the full guidelines or Request for Proposal (RFP) document. Pay attention to the grant's purpose, eligibility rules, funding range, deadline, and required materials. Ensure your project meets the funder's priorities and that the timeline works for you. It's better to focus on a few well-suited grants than to apply scattershot. Tip: Organize prospects in a spreadsheet or tracking tool with key details and dates.

2. Confirm Eligibility and Register: Once you've picked a grant to pursue, double-check that your nonprofit qualifies. Common checks: Do you have the necessary nonprofit status or documentation? Does the funder require a certain operating history or any pre-application screening (like a letter of intent)? For government grants, register early on the required portals. For example, federal grants require a Grants.gov account and current SAM registration. These registration processes (obtaining login credentials, DUNS/UEI numbers, etc.) can be time-consuming. Complete them well before the grant deadline – you cannot submit most federal grant applications until these are done. Similarly, some foundations use online application systems; set up your account in advance.

3. Prepare Documentation: Successful grant applications are backed by a lot of supporting documents. As soon as you decide to apply, start assembling the required paperwork. Common documents include:

   • Proof of nonprofit status: IRS 501(c)(3) determination letter.
   • Financial statements: recent Form 990, audited financials or budget reports.
   • Project budget: a detailed breakdown of how grant funds (and any matching funds) will be used.
   • Organizational information: mission statement, history, list of board members and key staff (often with brief bios or resumes).
   • Letters of support or MOUs: if partners or community leaders are involved in your project, letters endorsing your work can strengthen your proposal.
   • Strategic plan or needs assessment: sometimes requested to show long-term planning or the community need your project addresses.

   Create a checklist from the application guidelines and ensure everything is obtained and up-to-date. If anything is missing, reach out to relevant parties early (for example, ask your auditor for financial docs or partners for letters). Gathering documents can take longer than expected, so allow plenty of lead time. Submitting a complete application package (with all attachments in the correct format) is essential – proposals are often rejected outright for missing pieces.

4. Write a Compelling Proposal: This is the heart of your grant application – the narrative that convinces the funder to invest in your work. Follow the funder's instructions meticulously regarding format and content. Most grant proposals include similar core elements:

   • Executive Summary: A concise overview of your project and the amount requested.
   • Organizational Background: Your nonprofit's mission, track record, and why it's well-positioned to do the project.
   • Needs Statement: The problem or need your project addresses, backed by evidence. Clearly explain why this issue matters and who is affected.
   • Project Description: The what, how, who, and when of your plan. State your goals and objectives (use the SMART format – Specific, Measurable, Achievable, Relevant, Time-bound – for clarity), describe activities and timeline, and highlight your staff/partners' expertise to implement it.
   • Outcomes and Evaluation: Detail the results you expect to achieve and how you will measure success. Funders want to see specific metrics and evaluation methods, not vague statements. For example, instead of saying "we will improve literacy," specify "at least 100 children will improve their reading level by one grade, as measured by pre- and post-program testing."
   • Budget and Sustainability: Present a clear budget for the project, showing how grant funds will be spent. Ensure it matches any forms provided and that the numbers add up correctly – an unclear or imbalanced budget is a common reason for rejection. If required, include narrative justification for expenses. Also address how you will sustain the program or maintain impact beyond the grant period (funders often want to know the project isn't entirely dependent on their single grant).
   • Conclusion: A brief, compelling closing that summarizes the opportunity the funder has to make a difference by supporting your project.

   Throughout the proposal, keep the funder's perspective in mind. Tie your project to the funder's stated mission or interests – make it clear that funding your project advances their goals. Avoid simply elaborating how great your organization is or how badly you need funds; instead, frame it as how you will partner with the funder to achieve a shared objective. Use a professional yet passionate tone, and support claims with data where possible. Be realistic and specific: propose a project that is feasible and within the scale of the grant. Funders can spot over-ambitious proposals that don't match an organization's capacity (for example, a tiny nonprofit attempting a huge project just to fit a big grant opportunity can be a red flag). It's often better to scale your request appropriately and demonstrate you have the know-how to deliver.

5. Review and Submit: Before hitting "submit," proofread and edit the entire application thoroughly. Typos, grammatical errors, or inconsistent information can undermine an otherwise strong proposal. Ensure you answered every question or prompt in the application guidelines. Double-check that all required attachments are included, labeled correctly, and in the right format. It's helpful to have a colleague or an external reviewer read the proposal – a fresh set of eyes might catch unclear explanations or mistakes you overlooked. Many grant writers also read proposals out loud to catch errors or awkward phrasing.

   Never wait until the last minute to submit. Aim to complete your proposal a few days before the deadline, if possible. This cushion allows for last-minute corrections and avoids technical crises. Remember that online grant portals can crash or your internet could go down on the due date. Submitting even a day or two early can prevent a missed deadline due to unforeseen glitches (10 Common Grant Writing Mistakes and How to Avoid Them). Late submissions are almost never accepted, so build in time to overcome any hiccups. After submission, save a copy of everything for your records (including the final narrative and confirmation of submission).

6. Follow Up and Compliance: Post-submission, there's usually a waiting period of weeks or months before decisions are announced. During this time, you generally should not pester the funder (unless they invite communication or updates). However, if any changes occur (for example, another funder commits funding to the project, or a key staff member changes), you can inform the funder as an update to your application.

   If you win the grant – congratulations! Be sure to acknowledge the funder promptly and formally (often funders will require a signed grant agreement). Begin your project work as proposed and fulfill all reporting requirements. Mark report due dates on your calendar. Good grant stewardship (meeting timelines, delivering results, proper accounting) will set you up for potential renewals or future grants. If your proposal is declined, don't be discouraged. It's common to apply multiple times before success. If possible, ask the funder (with a polite email) if they have any feedback on your proposal. Even if feedback isn't available, review your submission critically or seek input from experienced grant writers to improve. Remember, even strong proposals can be turned down due to limited funding. Treat it as a learning experience and refine your approach for the next opportunity.

By following these steps, you establish a solid grant application process. Being organized and attentive to detail at each stage greatly improves your chances of producing a winning proposal.

Strategies for Successful Grant Applications

(19 Grants for Nonprofits to Explore in 2025 | Classy)Securing grants in 2025 requires not only following the right process but also adopting smart strategies to make your application stand out. Below are key strategies for success, along with common mistakes to avoid:

1. Align with funder priorities and values. A winning proposal is tailored to the funder. Research each grantmaker's mission, past grants, and stated priorities. Then reflect that understanding in your application. Clearly draw connections between what you do and what they care about. For example, if a foundation's focus is community health, emphasize the health outcomes of your program. Speak the funder's language – use terminology from their guidelines and address the goals they mention. This shows respect for their vision and signals that partnering with your organization will advance their objectives. Pro Tip: If allowed, contact the program officer with thoughtful questions before writing the proposal. Building a relationship or getting clarification can sometimes give you an edge and ensure you're on the right track.

2. Plan and polish your proposal carefully. Treat grant writing like a project in itself. Start early and create an outline of the proposal narrative before writing. This outline should mirror the application instructions, ensuring you cover every required section. Gather relevant data and testimonials to support your statements. As you write, maintain clear and concise language – grant reviewers may be reading dozens of proposals, so clarity is crucial. Avoid jargon or overly technical details unless necessary; a compelling story often resonates more than dry terminology. Once drafted, revise multiple times. Scrub out any errors and have colleagues review it. A well-structured, error-free proposal signals professionalism and instills confidence in your organization's abilities. Remember, your proposal is a reflection of your work – if it's sloppy or disorganized, funders might assume your project will be too.

3. Demonstrate capacity and readiness. Funders invest in organizations they believe can deliver. Use the proposal to showcase your nonprofit's strengths. Highlight the expertise of your team (briefly cite staff qualifications and relevant successes), the governance and support of your board, and any infrastructure that supports project execution. If your organization has managed similar programs or handled grants before, emphasize that track record. Newer nonprofits can compensate by noting related experience or partnerships that bolster capacity. Also be honest about challenges and how you'll mitigate them. Many grant proposals fail because the funder doubts the organization's ability to follow through – whether due to an inexperienced team, an underdeveloped board, or insufficient financial stability. Don't give them a reason to doubt: include a brief section on your preparedness, and consider attaching policies or strategic plans if appropriate to show you're organized and forward-thinking.

4. Focus on impact and outcomes. Grants are an investment in change. Make sure your application is outcome-driven. Clearly articulate what success looks like with this funding. Use concrete numbers or results (e.g., "provide 500 meals per week to homeless individuals" or "achieve a 20% improvement in test scores among 100 students"). Explain how you will measure these outcomes – whether through surveys, data tracking, or independent evaluation. Grantmakers want assurance that their funds will make a tangible difference and that you have a system to track that difference. Where possible, connect outcomes to a larger impact or societal benefit ("this project will not only help our 100 students, but also develop a replicable model for improving literacy in the district"). By painting a clear picture of impact, you help reviewers visualize the return on their grant.

5. Avoid common grant application mistakes. Many proposal rejections are preventable. Here are some frequent mistakes that nonprofits should sidestep:

• Chasing funds outside your mission: Don't contort your project to fit a grant that isn't aligned. Applying for a grant that pushes you away from your core mission or expertise is a red flag for funders – and even if you win, it could strain your organization. Stay mission-focused.
• Ignoring guidelines or instructions: Failure to follow directions (such as page limits, font size, or required format) can get your proposal tossed. Likewise, missing a question or a section will count against you. Always comply fully with the RFP instructions.
• Weak needs case: Some proposals fall flat by not convincingly answering "Why does this project matter?" Support your needs statement with data and compelling evidence. Don't assume reviewers know the problem intimately – spell it out.
• Unclear or unrealistic budget: Asking for an amount that doesn't match your project scope, or presenting a budget that doesn't add up, is a common mistake. Ensure your ask is proportional to the impact, and provide a logical, complete budget. Include other funding sources if the grant won't cover all costs, to show the project is financially feasible.
• Lack of stakeholder buy-in: If it seems like only the grant writer cares about the project, that's a problem. Funders want to know your leadership and partners are committed. Have your board, key staff, or community partners involved in planning and explicitly mention their support (10 Common Grant Writing Mistakes and How to Avoid Them). This demonstrates that if funded, the project will be embraced and implemented by the whole organization and its stakeholders.
• Procrastinating: Rushed proposals are easy to spot – they have more errors and weaker narratives. Starting writing a day before the deadline is a recipe for mistakes (or missing the deadline entirely, which sadly happens often). Give yourself enough time to do quality work.

6. Build relationships and stay informed. Successful grant seeking isn't purely transactional. Whenever possible, build relationships with funders and the broader funding community. Attend nonprofit conferences or webinars where funders speak. If you receive a grant, maintain communication with the funder beyond just formal reports – share periodic updates or successes. This can lay the groundwork for renewal grants or future opportunities. Also, stay informed about trends in philanthropy and government funding. For instance, there's a growing movement toward "trust-based philanthropy" that emphasizes simpler applications and fewer restrictions; being aware of such trends can help you adapt your approach. Subscribe to nonprofit newsletters or join your state nonprofit association to keep tabs on new funding programs and policy changes that could open (or shut) doors to grants.

Finally, remember that grant funding is one part of a healthy funding mix. When funders see that you have support from individual donors, events, or other sources, it gives them confidence that your project is sustainable. Grants can provide the boost for specific projects, but they are most effective when leveraged alongside other revenue.

By implementing these strategies – aligning with funders, writing strong outcome-focused proposals, avoiding pitfalls, and cultivating relationships – your nonprofit can significantly improve its grant success rate, even in a competitive environment.

Real-World Grant Success Stories

To illustrate how grant fundraising can empower nonprofits, here are some factual examples of successful grant applications in recent years:

• Major Philanthropic Grant – $22 Million: In late 2024, the Nonprofit Finance Fund (NFF) received a $22 million grant from philanthropist MacKenzie Scott. This transformative grant (one of many large unsolicited grants Scott has given) is helping NFF expand its programs that provide loans and financial guidance to other nonprofits. The case underscores how a compelling track record and clear impact focus can attract significant funding from major donors.

• Corporate Community Grants – $2.5 Million: The NBCUniversal Local Impact Grants program awarded nearly $2.5 million in grants in 2024 to nonprofits across 11 U.S. cities. Eligible organizations were mid-sized nonprofits working in youth education, emerging storytellers in media, or community engagement. Dozens of nonprofits received grants (typically around $100,000 each) to amplify their community programs. One recipient, for example, used the grant to launch a youth media training program, aligning with NBCUniversal's focus on next-generation storytellers.

• Foundation Capacity-Building Grants – $150,000: In spring 2024, the Quad Cities Community Foundation in Illinois/Iowa announced capacity-building grants for nine local nonprofits, totaling $150,000 in funding. Each grant – up to $20,000 – helped these organizations invest in strengthening their operations, such as upgrading technology, staff development, or strategic planning. For instance, EveryChild, a regional child welfare nonprofit, received a $20,000 grant to modernize its technology for program delivery. This case shows how even modest grants targeted at capacity improvements can have a big impact on nonprofit effectiveness.

• Competitive Corporate Challenge – $1 Million Awards: Through its 2024 TD Ready Challenge, TD Bank awarded 10 nonprofits grants of $1 million each (Grants for Nonprofits: How to Get Free Funding in 2025 - NerdWallet). Nonprofits had to submit proposals addressing challenges faced by underserved small businesses. Winners included organizations providing training and capital to minority-owned businesses. This competitive grant program demonstrates how a strong, innovative project concept – aligned with a corporation's community goals – can secure a large grant. The winners stood out by presenting data-driven solutions and clear business impact in their proposals.

• Federal Arts Grant – $10,000: The National Endowment for the Arts (NEA) runs an annual Challenge America grant offering $10,000 to small nonprofits to bring arts programs to underserved communities. These grants require a matching contribution and an application on Grants.gov. A recent example is a rural arts council that won a $10,000 NEA grant to fund a mobile arts workshop series for youth in remote areas, matching it with local donations. This highlights that even smaller grants, when used creatively, can launch impactful programs.

Each of these case studies – from multi-million-dollar gifts to small targeted grants – shares a common thread: the nonprofits had a clear mission impact and presented a compelling case for support. They knew the interests of their funders (be it an individual, corporation, foundation, or government agency) and crafted their proposals accordingly. Importantly, these grants have enabled the organizations to scale up services, proving how pivotal grant funding can be in driving nonprofit missions forward.

The U.S. Political Landscape in 2025: Impacts on Grant Funding

(United States Capitol Photos, Download The BEST Free United States Capitol Stock Photos & HD Images)Recent political shifts in the United States are influencing the grant funding environment for nonprofits in 2025. Changes in federal leadership, policies, and budget priorities trickle down to affect what funding is available and what strings might be attached. Nonprofit organizations should be aware of these developments to navigate opportunities and compliance requirements effectively:

• Federal grant policy changes: With the new administration in 2025, there was an initial upheaval in federal funding programs. In late January 2025, the Office of Management and Budget issued a memorandum temporarily pausing all federal grants and other financial assistance for a review to ensure alignment with the President's policies. Although this pause was rescinded after two days (easing fears of a prolonged freeze), it signaled an aggressive approach to scrutinizing federal grant programs. Nonprofits dependent on federal grants held their breath during this period, and the incident served as a reminder that political decisions can rapidly and unexpectedly impact funding flows. Going forward, there is no guarantee a similar freeze won't be tried again, so nonprofits are advised to have contingency plans for key programs in case of sudden funding delays.

• Shifting funding priorities: The administration change has brought different policy priorities, which in turn affect grant availability. Areas that enjoyed expanded funding in the previous administration, such as climate change initiatives or certain social programs, may face cuts or restructured programs under the current leadership. Conversely, priorities like national security, infrastructure, or vocational training might see new grant programs or increased funds. For example, Congress authorized supplemental appropriations in 2024 for the Nonprofit Security Grant Program (due to rising security concerns), boosting its funding to new highs. Nonprofits focusing on security, emergency preparedness, or related areas can capitalize on such increases. On the other hand, nonprofits working on diversity, equity, and inclusion (DEI) initiatives have encountered headwinds. In early 2025, a federal executive order was issued to restrict DEI-related programs in federal grants, effectively requiring grantees to certify compliance with anti-discrimination laws and not run afoul of the administration's ban on certain DEI practices. This order was controversial and was soon blocked nationwide by a federal judge for being potentially vague and discriminatory. The legal back-and-forth creates uncertainty – while the block means DEI-focused nonprofits can continue to receive federal funds for now, the issue is evolving. Nonprofits should stay vigilant about grant terms and be prepared to demonstrate how their programs comply with any new federal rules.

• New restrictions and oversight: Along with shifting priorities, there are legislative efforts that could impose new restrictions on who can receive grants. For instance, bills have been introduced in Congress to strip certain nonprofits of eligibility for funding if they are perceived as not aligning with law enforcement goals (such as immigration-related nonprofits being required to certify they are not abetting illegal activity). While these bills may or may not become law, they reflect a climate where some nonprofits could face additional scrutiny or certification requirements to obtain federal grants. This trend means organizations should pay extra attention to compliance – ensuring all their programs are above board with regard to federal laws – and be ready to provide certifications or documentation if new rules come into effect. Nonprofits may also consider focusing on maintaining bipartisan support for their work to avoid being caught in political crossfires that threaten funding.

• Congressional earmarks and community funding: On a positive note, one revived aspect of the federal landscape is the return of Congressionally Directed Spending (earmarks) for community projects. Lawmakers in 2025 are once again able to direct federal funds to projects in their districts (within certain limits). These are often referred to as "community project funding." Nonprofits that cultivate relationships with their U.S. representatives and senators have a chance to tap into these funds for local projects. Typically, the window for such requests is early in the year (e.g., Feb/March when appropriation discussions start). Nonprofits should engage their local officials, as building those relationships can raise your organization's profile when Congress is deciding on earmarks. A small community nonprofit, for example, might receive a direct federal allocation for a new community center if their congressperson champions it. The process is competitive and requires advocacy, but it's a notable opportunity that has re-emerged in the current landscape.

• State-level funding and reforms: Not all changes are at the federal level. Many state governments are running surpluses or new budgets that include nonprofit grant programs (especially those flush with federal passthrough funds or higher tax revenues). States like California, New York, and others have issued one-time grants for pandemic recovery or economic development that nonprofits can access. Additionally, nonprofits continue to advocate for grants and contracting reforms at the state level. For instance, legislation in states like Illinois and New Jersey is being considered to streamline grant application processes, ensure prompt payments, and cover more of nonprofits' indirect costs with government grants. Maryland is debating a "Nonprofit Navigator" office to assist nonprofits in finding and applying for state grants. These reforms, if enacted, could make it easier for nonprofits to work with government funding. It's worth keeping an eye on your state's policies – via your state nonprofit association – to leverage any new grant initiatives or improved processes.

• Foundation funding dynamics: Political uncertainty often affects foundation behavior too. In 2025, many foundations are aware that government funding in certain areas might recede, so they could pivot their grantmaking to fill gaps. Moreover, as noted earlier, the strong stock market performance in 2024 increased foundation endowments, leading to higher grant budgets in 2025 for many funders. Foundations must pay out a percentage of assets, so windfalls in their portfolios mean more money available for grants. This is good news for nonprofits: even if some federal programs are in flux, private philanthropy has an incentive (and obligation) to maintain or raise its giving. Trends like trust-based philanthropy are also encouraging foundations to give more general operating grants and simplify applications, which could ease the burden on grantees. Nonprofits should stay connected with their foundation funders, communicate their needs, and highlight any shortfalls caused by public funding changes – foundations often respond to the demonstrated needs of the sector.

Key takeaways: The 2025 political landscape is a mix of challenges and opportunities for grant funding. Nonprofits may face stricter oversight and shifting priorities in federal grants, requiring diligence in compliance and perhaps recalibrating which programs to emphasize for government funding. At the same time, new funding avenues like earmarks and increased foundation giving can be tapped with the right approach. To succeed, nonprofits should remain adaptable: closely monitor policy developments, advocate for their causes, and diversify their funding to be resilient against political swings. By understanding the landscape, organizations can proactively adjust their grant fundraising strategies – whether that means seeking more private grants, aligning proposals with emerging priorities, or engaging in policy advocacy to protect nonprofit interests.

Conclusion

Grant fundraising in 2025 demands both mastery of the fundamentals and awareness of the evolving context. Nonprofits that thoroughly prepare grant applications – researching opportunities, following a disciplined step-by-step process, and crafting compelling, outcome-focused proposals – put themselves in the best position to win funding. By learning from common mistakes and adopting best practices, even small organizations can improve the odds of success in the highly competitive grant arena.

Equally important is staying attuned to the external environment. The grant landscape is not static; political and economic shifts influence which funds are available and under what conditions. Nonprofits should keep an eye on policy changes that affect grant programs and be ready to adjust their strategies accordingly. The examples of recent grant wins show that despite challenges, significant funding is out there – from government agencies, corporations, foundations, and individual philanthropists – for organizations that can persuasively demonstrate their impact.

For nonprofits seeking grants this year, leveraging the right resources can make all the difference. Online tools like GrantGet offer a powerful way to discover funding opportunities tailored to your mission, saving time and casting a wider net. Combining such tools with careful planning and relationship-building will amplify your grant-seeking efforts.

In summary, grant fundraising is part art and part science: it requires storytelling that touches on a funder's goals, backed by data and diligent planning. With a solid understanding of how grants work, a strategic approach to finding and applying for them, and an eye on the current funding climate, your nonprofit can navigate the world of grants more effectively. Whether you are aiming for a modest local grant or a multi-million dollar federal award, the principles remain the same – align with the funder, prove your capability, and illustrate the change you will create. By doing so, you can secure vital grant funding to fuel your mission and make an even greater impact in 2025 and beyond.

References:

• Grant proposals account for roughly one-fifth of U.S. nonprofit income on average, highlighting the need to diversify funding.
• Only about 10% of grant proposals are accepted, making preparation and fit critical.
• Use grant search tools (e.g., Grants.gov, Candid, GrantWatch) to find opportunities that match your mission.
• Before applying, evaluate if a grant aligns with your organization's purpose, geographic service area, and capacity.
• Gather all required documents (IRS letter, financials, resumes, etc.) well ahead of deadlines to ensure a complete application.
• Tailor each proposal to the funder's interests and include specific, measurable outcomes to track success.
• Common reasons for rejection include poor fit, lack of organizational readiness, not following directions, or unclear budgets.
• Always meet grant deadlines – submitting early can prevent technical issues from causing a missed opportunity (10 Common Grant Writing Mistakes and How to Avoid Them).
• In 2024, MacKenzie Scott's philanthropy provided a $22M grant to NFF, boosting its capacity, and NBCUniversal's grants delivered $2.5M to local nonprofits, showcasing the range of grant funding available.
• Early 2025 policies aimed to restrict DEI programs in federal grants were halted by the courts, but nonprofits should remain alert to new compliance requirements.
• A temporary freeze on federal aid in Jan 2025 (quickly lifted) demonstrated the new administration's willingness to recalibrate funding programs, urging nonprofits to stay prepared for shifts in grant landscapes.