The Gems in Your Backyard: Why Nonprofits Should Prioritize Local and Relational Grantseeking
Most nonprofits want to apply to the big-name national grantmakers, but here’s why keeping it close to home is a stronger strategy
There's often an overwhelming allure towards big, well-known national grants (raise your hand if you, or someone on your leadership team or Board has asked why you don’t “just apply for a MacKenzie Scott grant”).
Understandably, these grants seem like the ultimate jackpot, promising significant funding and widespread recognition. But amidst the glittering allure of national grants from big name grantmakers, there lies a quieter, often overlooked treasure trove:
local and subject-matter aligned donors, particularly those with whom nonprofits share personal connections.
In this blog post, we'll explore why nonprofits should shift their focus towards these hidden gems for sustainable growth and impact.
1. Community connections
Local donors are more than just funders; they are integral members of the community. When nonprofits engage with local donors, they foster a sense of ownership and pride in the community's well-being, and they’re more likely to actually win grants!
These donors are often passionate about supporting causes that directly impact their cities or regions, making them more likely to offer meaningful support. It’s also much easier to seek and find direction connections with the people running these organizations if they’re based in your backyard.
We work with a lot of client partners whose work is national or virtual, and therefore there isn’t an obvious regional or local locus for grantseeking. In those cases, we recommend looking for funders in the places where you do have a critical mass of programs, campaigns, or even employees or volunteers. Any connection you can make to a community will make you more compelling to the donors in that community.
2. building meaningful relationships
First of all, by some estimates there are nearly 2 million nonprofits registered in the United States, and competition at the national level, especially with big-name funders, is fierce.
Unlike national grants, which may involve impersonal application processes, local and subject-matter aligned grantmakers offer nonprofits the opportunity to build genuine, meaningful relationships. Personal connections provide a solid foundation for trust and understanding, allowing nonprofits to tailor their pitches and showcase the real, human stories behind their work.
Personalized interactions not only increase the likelihood of receiving funding but also pave the way for long-term partnerships based on mutual respect and shared goals.
3. Maximizing Impact
While national grants offer large sums of money in total, they are often spread thin across a wide range of organizations, which sometimes results in relatively modest impact per recipient.
In contrast, donations from local donors, especially those with a strong affinity for a particular cause or organization, have the potential to make a significant difference at the grassroots level. By focusing on building relationships with local donors, nonprofits can channel resources towards projects that directly benefit their communities, maximizing the impact of every dollar received.
4. Diversifying Funding Streams
Relying solely on national grants for funding leaves nonprofits vulnerable to fluctuations in the grant landscape and changes in funding priorities. By diversifying their funding sources to include local donors, nonprofits can create a more stable financial foundation that is less susceptible to external factors.
Moreover, cultivating relationships with local donors opens up opportunities for in-kind donations, volunteer support, and other forms of non-monetary assistance, introductions to other donors in the region, all of which can further enrich the organization's resources.
5. Keeping it strategic
It’s time for some real talk: without connections, huge nationwide impact, or name recognition, it can be hard to get in the door with a big-name, national funder. We often work with client partners to get them in front of those national funders that they are aligned with, and for which they are qualified and eligible.
But focusing on…
Local and regional funders
Funders focused on your issue area
Those you have a direct relationship with
…is simply a more strategic approach that is more likely to lead to results (and funding!) than throwing your spaghetti at the Big National Funder Wall.
We can help you find and connect with good-fit funders
While national grants certainly have their place in the grantseeking process, they should not overshadow the immense value of local and subject-matter aligned donors.
By prioritizing personalized grantseeking strategies that emphasize community engagement, relationship-building, and impact maximization, nonprofits can unlock a wealth of opportunities right in their own backyard. Let's shift the spotlight from the grand stage to the local scene, where the true power of philanthropy lies in the hands of those who care deeply about making a difference in their own communities.
Get in touch with us today for a free consultation and we'll tell you all about how we can help.