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What to Do If Your NGO is Declined Funding

Filed in Relationship Advancement — February 23, 2025

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Turning a Funder Denial into Future Success

A denial letter or email from a funder can be disheartening, but it also presents an opportunity to understand the “why” behind the decision. The most valuable step your NGO can take after being declined funding is to seek feedback and guidance that can increase your chances in the next round. Many funders are open to sharing their rationale, as everyone in this sector aims to create sustainable change.

When requesting feedback, consider asking specific, thoughtful questions. You can select those most relevant to you from the following list, but be mindful of selecting the appropriate number of questions so that the meeting flow is dynamic, fruitful, and respects the time boundaries of everyone involved.

  • What was the original inspiration behind inviting us to submit a proposal?
  • What was the most compelling aspect of our submission?
  • What aspects of our organization set us apart from other organizations you’ve funded?
  • What areas could we improve upon?
  • What did you perceive as the weakest link in our submission?
  • What would have made that weak link stronger?
  • On a scale from 1 to 10, how well did we align with the _____ Foundation’s mission?
  • What would have made us a 10?
  • What is the largest funding amount you’ve granted to organizations in our issue area, and what aspects of their work inspired that level of investment?
  • What would it need to look like for you invite us to reapply?
  • How did our application compare to the average submission you receive?
  • What factors most influence your final funding decisions?
  • Are there specific metrics or outcomes you prioritize when selecting grantees?
  • How can we better demonstrate our impact and scalability in future applications?
  • Would you recommend any adjustments to our budget or funding request?
  • How do you assess the long-term sustainability of organizations you fund?
  • Did any external factors, such as economic conditions or strategic shifts, affect this funding cycle?
  • Would you consider supporting a different project or program within our organization?
  • Based on your knowledge of our work and theory of change, are there other funding partners who should know about our organization?
  • Would you be open to making introductions to those potential partners?
  • Is there anything else you can share that would strengthen our organization or our relationship with you?

Tips for Seeking Feedback

  • Choose the Right Format: While a video call can foster a more personal connection, not all funders have the time for a 30-minute conversation. Seek permission to submit questions via email if a call isn’t feasible.
  • Respect Their Time: Be concise, respectful, and appreciative in your communication. Funders are more likely to offer thoughtful feedback when approached with openness, curiosity, and professionalism.

Additional Resources

If direct feedback from the funder isn’t possible, consider alternative sources such as The Unfunded List. Their evaluation committee provides candid, constructive feedback on grant proposals and fundraising materials. For eligibility inquiries, contact help@unfundedlist.com.

Reflecting upon the Feedback

After receiving feedback, assess your organization’s next steps by asking:

  1. Is this something I can change? For example, if the denial was due to the funder shifting focus away from your geographic area, that’s beyond your control.
  2. Is this change aligned with our mission? Avoid “mission drift” by ensuring any changes align with your core mission, not just a single funding opportunity.
  3. Should we reapply? If the feedback suggests areas you can improve, discuss the possibility of reapplying with the funder. Many organizations secure funding after multiple attempts.

Learning from Peer Organizations

If direct feedback isn’t available, connect with peer organizations that have applied to the same funder. Understanding what set successful applicants apart can offer valuable insights. Additionally, review the funder’s website and recent Form 990 filings to identify patterns in their funding decisions. Look for common themes among grantees and ask:

  • Is this something we can change?
  • Should we change it?

Turning a “No” into a Future “Yes”

While a denial can be discouraging, it’s also an opportunity for growth. By seeking and applying constructive feedback, you can strengthen your future proposals and build lasting relationships with funders. At Black Fox Global, we believe that the best funding experiences advance both the funder’s and grantee’s shared mission and vision. Use that alignment as your guiding principle, and you’ll find the right relationships to help you achieve your goals.

Updated with the latest advice and additional questions to help your NGO turn funding denials into future successes.

By Natalie Rekstad, Founder, Black Fox Global