When a revenue source dries up, it’s natural to look at grants as a lifeline. And sometimes, they can be. But let’s be clear: grants are not an instant plug-and-play fix for a budget shortfall.
As grant strategists, we’ve seen organizations successfully use grants to stabilize during uncertainty. We’ve also seen leaders place quiet expectations on grant funders—counting on a grant to fill a gap the funder didn’t know existed and never intended to solve.
If you’re staring down a funding gap, here’s how to approach grants with strategy—not desperation.
1. A Grant Might Be the Bridge – Not the Solution
When you lose major support, your instinct may be to rush into grant seeking. But not all funding gaps are created equal—and neither are grants.
There may be an opportunity to bring in short-term funding from a past funder who already believes in you. Community foundations, in particular, are often positioned well to step back in at moments like these. If your mission is at risk without this funding, and you can show a long-term plan including the impact to the community of this lost funding, that can be a powerful case for a near-term grant.
But make no mistake: a grant is rarely the full solution. What it can be is one piece of a broader funding mix—a bridge that gives your organization time to activate a longer-term strategy.
2. The Riskiest Assumption? That Grants Will Just Keep Coming
Too many leaders assume grant renewals are automatic. They’re not.
Grants require tending. Private funders don’t want to be “updated”—they want to be included. That means one-to-one engagement, not just newsletters or annual reports. Without that, the first time you hear about a change in their funding priorities may be when your support disappears.
And when it does, you’ll wish you had spent more time listening and building the relationship
3. How to Use Grants Strategically in a Shortfall
If you’re navigating a funding gap, here’s a more resilient playbook:
- Re-engage your closest funders. Don’t assume they know what you’re facing. Be proactive and transparent—many funders are willing to step up when they understand the stakes and see a viable path forward.
- Pursue new grants with precision. If you seek new funders, be specific. Align your request directly with their priorities, and frame it as a way to help your organization move toward stability—not just survive a moment of crisis.
- Sequence your outreach intentionally. Think of your funding strategy like ripples in a pond: start at the center with those who know you best, then expand outward. Prioritize relationships over reach.
4. Ask Yourself: Is This an Inflection Point?
Some revenue gaps are more than temporary—they reveal structural issues or shifting realities. If this moment is an inflection point, you may need to rethink your entire grant strategy. That’s not a weakness—it’s a leadership move.
We help organizations set realistic grant goals that align with their whole fundraising strategy. That includes knowing when to lean into grants—and when to strengthen other pillars.
Ready to Talk It Through? If you’re facing a funding shortfall and wondering whether grants can help, we’re here to talk. Whether you need a short-term bridge or a long-term plan, we can help you see your options clearly.
