What to Do After a Grant Rejection

We’ve talked about what happens to your grant application after you submit it. But what happens when the answer comes back and it’s a no?

We’ve all been there, and it hurts. It hurts the ego, and it can certainly hurt the budget.

Before you start rewriting your proposal or crossing that funder off your prospect list, take some time to understand what the rejection actually tells you. What can you learn from it? And more importantly, what should you do with that information?

Step 1: Don’t assume the grant rejection means you did something wrong

A rejection is an outcome, not necessarily an explanation.

If you are the grant writer

Take a step back and remember that there are lots of reasons your application could have been declined. It doesn’t mean your application was poorly written. You may not know how many applications were submitted, who was on the grant panel, how much funding was available, or any of the other factors that influenced the decision.

Resist the urge to immediately re-open the application and start looking for everything you could have done differently. Instead, think about the rejection as another data point. Just like with the grant decision matrix you built, ask whether anything you learn from this rejection would affect how you’d evaluate the opportunity next time.

If you are the executive or development director

This is the time to support your grant professional! They are probably feeling discouraged. 

Rather than immediately focusing on the application itself, examine the strategy behind it. Did you understand the funder’s intent? Do you need to develop a stronger relationship before applying again? If this was a recurring grant that wasn’t renewed, is there a reason (non-compliance, change in funder priorities, increased competition) that might explain the change?

And, of course, consider the practical implications. Will this decline impact your budget? Do you need to re-examine program expenses now that anticipated grant revenue isn’t coming in?

Step 2: Read the rejection decision. Then read between the lines.

Start with exactly what the funder told you. Sometimes, the rejection letter itself says quite a bit. Other times, it says nothing, really. But the best step here is to mine what you can.

• Are there time-sensitive pieces of information you need to address, like scheduling a follow-up conversation the funder offered?

• Did they tell you how many applications they received and/or funded, or how much total funding they awarded in this cycle?

• Have they provided you with reviewer scores or comments? Can you request written or verbal feedback?

• Is there a list of funded awards you can review to better understand what was successful in this cycle? If that list won’t be published until later, mark the date on your calendar so you can follow up.

What you receive will vary. Government funders may share scores and panel comments, while private funders may not provide individualized feedback at all. Especially as grantseeking becomes more competitive, some foundations simply don’t have the capacity to respond to every unsuccessful applicant.

Don’t manufacture an explanation where one doesn’t exist. Consider whether the information you have points to a problem with the application, an issue with fit, a competitiveness problem, a weak relationship, a change in funding priorities, or simply something you cannot know.

Is this rejection part of a larger trend? If you’ve had multiple funders decline your requests, what do those requests have in common? For example, if your nonprofit is forecasting a significant deficit in the current fiscal year, have you provided enough detail in the organizational budget to explain how that deficit would be financed? Or, if this application was for a new program, is it possible that the program isn’t developed enough for grant support?

Step 3: Determine how to move forward

Gather your team together so you can discuss what you’ve learned. Ask the question that really matters: What, if anything, should change? Should you reapply? Cultivate the funder before approaching them again? Revise the proposal and submit in the next cycle? Reconsider the prospect? Or stop pursuing this funder altogether?

Unfortunately, there isn’t a one-size-fits-all answer here. (I know, you’re probably tired of me saying this. But it’s true!) Your next step depends on what you learned from the rejection and where you stand with the funder. A recurring funder that unexpectedly declined your request might warrant a conversation before the next cycle. A strong-fit funder that encouraged you to apply again might stay high on your prospect list. A first-time application to a funder where you have no relationship and little to no feedback might simply be something to monitor. (I’ve heard of some grant pros who have a “three strikes” rule for these types of funders: apply three times, then move on.) And new information about the funder’s priorities or giving could tell you that the opportunity isn’t as strong a fit as you originally thought.

When possible, contact the funder. Even if they can’t provide detailed feedback, the conversation itself may help you better understand the opportunity and continue developing the relationship.

For extra credit, take what you learned and run the opportunity back through your grant decision process. Would you make the same decision to pursue this opportunity today? Why or why not?

What happens if the decision date passes with no word?

Sometimes you don’t actually receive a rejection. Particularly in the case of LOIs (letters of interest or intent), a funder may advertise a certain decision date, like “4-6 weeks after submission” or even a specific calendar date. You diligently mark that notification date in your grant calendar. The date comes and goes. You wait a week, two weeks, a month, with no word. What’s next?

If the funder provides a contact for questions, reach out. Keep the message brief: explain that you submitted an application or LOI, reference the anticipated notification date, and ask whether decisions have been announced. It’s always possible the decision ended up in an aggressive junk filter.

If there’s no appropriate way to contact the funder, document what happened and move forward. Silence is frustrating, but repeatedly chasing a funder that doesn’t invite applicant communication probably isn’t a great use of your time.

Step 4: Turn the rejection into institutional knowledge

It’s easy to just think about a rejection as something tanking your grant program KPIs. But there’s more useful information here than simply stamping “declined” on the application.

Save the funder’s correspondence in your application folder. In addition to recording the outcome in your CRM, note the exact reason for the decline, if one was provided, and save any reviewer scores or comments. (Even better if your system allows you to upload the original feedback documentation.)

Then document what you decided: your internal assessment of the decline, any follow-up with the funder, whether you plan to apply again, and anything you want the team to reconsider before the next cycle.

This institutional knowledge becomes incredibly valuable over time. When a new grant professional and executive director are running your nonprofit’s grant program ten years from now, they shouldn’t have to guess why you stopped applying to a funder, or make the same discovery all over again. They’ll thank you for saving that information.

A “no” may not tell you exactly what went wrong. But, when handled thoughtfully, it can still become a useful data point for the next decision.

And, if you really want to know what someone else thinks of your proposal, consider submitting it to the Unfunded List! Panelists like me (or you!) will review your proposal and provide feedback that can help you strengthen future submissions.

Ready to decide whether that funder belongs on your future grant calendar? Download my Grant Decision Framework to evaluate the opportunity again based on what you know now.

The Grant Decision Framework is one of the customizable tools included in Increase Your Mileage, my package designed to help nonprofits build stronger, more sustainable grant systems. Learn more about the service and book a discovery call.

Cover photo by Sol Cid on Dupe.