What to Do After Grant Rejection: Turning Rejection into Opportunity

“We regret to inform you…”

That phrase can make you want to drag and drop a rejection letter into the trash bin before you finish reading. Grant rejection can be difficult to handle. This rings true for the most seasoned nonprofit workers because it feels personal. It can also give the impression that your nonprofit is “not good enough.”

However, grant rejection is normal and a potential stepping stone to bigger and better grants. It just takes a change in perspective. This post will examine why grant proposal rejection happens and how your organization can use it to succeed on your next attempt. 

Why Grant Rejections Happen

A cold, hard truth about the funding world is that rejections do (and will) happen. Funders may even decline a perfect or nearly perfect application for reasons unrelated to the applicant themselves. 

But there’s a comforting counterpart to this reality—even the most reputable nonprofit organizations face rejection. More importantly, a rejected grant is never personal but usually stems from certain factors beyond an organization’s (and even a funder’s) control. 

Limited Funding Pool

Funders often receive more qualified applications than their resources can handle. It’s not uncommon for proposals deemed “excellent” to get rejected simply because the funder’s resources are scarce. Ultimately, tapping into funding sources is a numbers game—the application can look strong, but where funds are insufficient, rejection follows. 

Highly Competitive Applicant Field

Make no mistake—the nonprofit space is highly competitive. For every successful proposal that goes on to secure funding, 8 or 9 other nonprofit organizations fail to get the green light. Only 10-20% of research and nonprofit grant schemes get approved, meaning that most applications don’t get funded in a given cycle despite the strength of their submission. Grantmakers may even receive two (or more) applications that are both “perfect” candidates but will often have to choose just one. 

Shifting Funder Priorities

What a funder prioritizes today can radically change tomorrow. It’s common for these decision-makers to shift their priorities annually, rendering last year’s applicants a poor fit for the funder’s current focus. To make matters more complicated, these changes in the agenda can happen suddenly and silently.

Minor Technical Errors or Misunderstandings

Mistakes can happen when filing a grant application; even minor errors can disqualify eligible candidates. Missing attachments, formatting mishaps, and budget inconsistencies can all lead to rejection.

Weak Alignment with Funder Mission (Even if a Good Project)

Sometimes, the proposal isn’t what gets declined, but rather, the core values it represents. Many nonprofits submit grant applications to grantmakers that don’t align with their mission or funding priorities, resulting in rejection. 

Rejection Doesn’t Necessarily Mean Your Project Wasn’t Worthy

Remember, though, that despite the real possibility of an application rejection, it’s usually not a reflection of your organization. The best-crafted proposals from the most impactful or groundbreaking nonprofit organizations can be rejected for one (or more) of the above factors. So if your proposal has been declined in the past, don’t take it personally—there was likely something bigger at play. More importantly, a rejected grant application can open doors elsewhere. 

Next Steps to Take After a Grant Rejection

A rejection letter can feel demoralizing, but it’s crucial to use a denial as an opportunity to improve your approach and find more suitable funders. If you implement the right post-rejection strategy, your organization can quickly bounce back from that rejection. 

Stay Professional and Positive

Disappointment can change your disposition and make you feel somewhat ill-tempered. However, always and only respond to rejection with gratitude. After your application is declined, let any negative emotions fizzle out, and then craft a reply that expresses your appreciation for their consideration. These types of responses may smooth things out and make the funder consider you in the future if you resubmit your proposal. 

Ask for Feedback 

This feedback can strengthen your grant writing skills and improve your clarity. Some fundraising sources may provide direct feedback. If they do, take notes. If they don’t offer feedback, politely request comments and scoring details from grant reviewers—they’ll serve as mentors to help get you on the right track. Receiving (and incorporating) these tips first-hand can help you nail your application in the next submission cycle. 

Review the Rejection 

Immediately after rejection, make sure to reflect on your proposal writing. After that cool-down period, where you let go of frustration, review your grant application to find signs of what may have gone wrong. Look for things like:

• Errors in formatting or inconsistencies
• Misalignment between your mission and the funder’s priorities
• Unclear information 

If you notice any of these, then the good news is that you can amend these changes. 

Document Everything 

Don’t forget to keep detailed and thorough records of everything related to your application process. The reason is that documentation helps you track and avoid repeating mistakes that could lead to future disqualifications. Make sure to track items such as the grant opportunity and supporting materials, any feedback you have received, and collected notes on what worked and what didn’t.

Analyzing Feedback

If you receive feedback, see it as a gift (even if the comments feel harsh). Much of what you need to know to prevent future rejection lives in those notes, so take them to heart. Organizations that apply feedback greatly increase their success rate.

If You Receive Formal Feedback 

• Look for Patterns— Carefully read through reviewer comments and scoring sheets to find recurring patterns and themes. For example, if you see multiple comments mentioning a vague budget or the absence of measurable outcomes, these elements likely need adjusting.
• Identify What You Can Realistically Fix—Pinpoint issues you can easily address in-house (i.e., fixing budgeting details), then label the ones that may require significant reworking or external support. Then, focus on addressing the simpler fixes first. 

If No Feedback is Given

• Re-read Your Proposal Objectively or Have a Colleague/Consultant Review It—Take your eyes and mind off your application during that cool-down period. Once a brief period has passed, ask a colleague or professional grant consultant to review it. Their critique may identify issues you didn’t see. Ask a colleague or professional grant consultant to review your grant proposal thoroughly.
• Compare Your Application to the Funder’s Stated Priorities More Critically—Reinvestigate the funder’s grant writing criteria and current focus areas. A second glance at these guidelines may reveal some disconnects between your grant application and the funder’s vision. 

Common Improvement Areas

A well-crafted grant proposal presents your goals, outcomes, and support needs.

• Stronger Needs Statement—State your proposal clearly and convincingly, including data and storytelling, so a funder can see why your project is essential.
• More precise Alignment with the Fundraising Mission— Demonstrate how your project spearheads your funder’s objectives, using their language and referencing their priorities.
• More Detailed Project Design or Evaluation Plan—Include more specifics about activities, timelines, desired outcomes, and how you plan to measure success.
• Tighter, More Persuasive Writing— Edit your proposal ruthlessly for clarity, concision, and persuasiveness. The more precise your language, the better your arguments stand out. 

Strategies for Revising and Strengthening Future Applications

If there’s one takeaway you need to remember from this post, it should be that you can turn a grant rejection into future success. That means looking at what went wrong, what you could have done differently, and more importantly, using these observations to inform your future grant applications. 

Refine Your Core Materials

Restructure your grant templates based on feedback the funder provides (if given). Update budgets, bios, logic models, evaluation plans, and more. Updating these components guarantees you’re always ready to respond quickly if new funding opportunities arise. 

Deepen Your Funder Research 

Look at their past grant funding choices to better align your goals. Do a deep dive on your funder to uncover whether you’re truly a good fit (or not). For example, if your target funder has annual reports, lists of funded projects, or strategic plans you can access, review them carefully.

Strengthen Your Storytelling

Craft a compelling narrative that supports your cause. Go beyond stating the obvious (i.e., “our cause improves lives”), and insert case studies, testimonials, and stories that can make your proposal more persuasive and “human.” Assume the program officer reading your proposal needs convincing that your cause is truly worth the funds you’re seeking. 

Show Scalability and Sustainability

Outline how the grant funding will be allocated and maintained in the long term. You may also mention other fundraising methods to support the project once the grant concludes.

Funders prefer investing in projects and initiatives that can have a lasting impact. That’s why it’s in your best interest to outline how your project will do so, and what steps you’ll take to sustain it after the grant finishes. 

Invest in Peer Review

Consider bringing in a grant writing expert to help refine your narrative. Recruit additional staff members or talent to critique your proposal drafts. You can bring on colleagues, consultants, or past reviewers to catch mistakes, identify unclear sections, and spot missed funding opportunities. Having an extra set of eyes to pore over the details can help boost the quality of your application. 

Pro Tip: Create a “Lessons Learned” Document

Consider keeping a document that contains notes or lessons you’ve acquired on rejected applications. That may include feedback, internal ponderings, and completed revisions. The purpose of this document is to serve as a roadmap that can help you improve your future proposals.

How to Stay on a Funder's Radar

The key to getting funded is not to give up in the face of rejection. Remember, applying for a particular grant isn’t a one-shot-only proposition, so you can likely apply for any funding in the next cycle. That said, the likelihood of getting approved on your next grant cycle increases if you maintain strong partnerships with key decision-makers. So you should do what you can to stay on a funder’s radar. 

Tips to Leave a Lasting Impression With Funders

• Stay Gracious— A “Thank you” goes a long way in funding. That rings true especially after rejection. Always leave a straightforward and sincere appreciation note—doing so can make you stand out from nonprofits that don’t.
• Stay in Touch— According to one LinkedIn article, organizations that stay in contact with funders after a rejection are 40% more likely to secure future funding. That’s why it’s crucial to keep the lines of communication open and active after submitting an application.
• Apply Again— Remember, you can almost always apply for a grant after a rejection. It’s quite typical for grantees to get turned down once or twice before successfully securing funding. The key is to use your collected feedback and observations to strengthen your proposal for the next cycle.

Turn Grant Rejection into Your Secret Weapon

Legendary baseball player Babe Ruth once said, “Every strike brings me closer to a home run.” Athletes in various sports have echoed that mentality, highlighting an important truth: rejection is not the end but rather the beginning of success. 

This truth resonates in the nonprofit world, too. A rejected grant proposal simply informs your organization that you were either not the right fit for a funder or that certain aspects of your grant application can be improved. Once you learn what to change in the next round, your application can only get stronger, and as you learn to match your nonprofit with the right funders, your grant opportunities can only improve.

Continue revising and come back stronger. Improvement and persistence will significantly increase your chances of success.