Non Profit Funding for New Organizations
When you've been in the non-profit fundraising and marketing field long enough, and maybe have a few million dollars raised to your credit, you're often asked questions. It could be at a conference, after a meeting to being recognized in the grocery store.
I'm asked a number of wide-ranging questions. This is the number one question that I am asked -
Why is it so hard to get a grant from a major Foundation?
Many times I am asked this and this often relates to the organization not being ready to apply for a grant to major funders like the Gates Foundation, Johnson and Johnson, or other large groups. If you are a new non-profit that just received your 501©3 and haven’t held any programs, you most likely will want to try to obtain funding from other sources.
If you are an organization that has provided service for several years and have established programs with outcomes and proven results, apply to those bigger Foundations!
Fundraising Strategic Plan
Grants can be a good source of revenue, but not for new nonprofits. Most foundations want you to have three years of experience under your belt so you can prove your program is working before they invest in it. Even when you have the 3 years of program data, trying to fund your entire organization from grants is not a good idea. Most foundations don’t want to fund your program year after year, and even though there are thousands of foundations out there giving away money, there are only so many that are the right match for YOU. That means there’s only a small pool of foundation grants you are a match for and you’ll need other streams of income to cover the costs that grants don’t cover.
If you are a new nonprofit, what can you do instead? Take a look at 40 ways to get funding for your nonprofit.
Check out our Low Cost Course with online Support. Everything that you need to take you from “I’m not sure to - I know exactly what to do !!”
Update: June 2025 — Federal Funding Cuts Hit New Nonprofits Hard
In June 2025, emerging nonprofits are facing mounting challenges tied to sweeping federal budget cuts. A recent analysis reveals that nearly half of nonprofits receiving federal funds have already experienced declines in fiscal-year support. Key programs under threat include AmeriCorps grants—reduced by nearly $400 million—environmental programs (EPA), community block grants, refugee resettlement, substance abuse services, and housing and water assistance programs. Even public media is bracing for a potential $1.1 billion rescission via Executive Order 14290, which targets funding for NPR and PBS.
These cuts are compounding uncertainty: for example, Meals on Wheels in Texas is considering a 10–30% reduction in federal reimbursement, meaning tighter eligibility and longer waitlists for seniors. In Greater Cincinnati, two-thirds of nonprofits warn they may need to reduce services or close within six months if funding isn’t restored.
What this means for new nonprofits: Your grant and programming pipelines must adapt immediately. Expect:
Tighter federal grant cycles, with additional eligibility filters and paused disbursements linked to policy reviews.
Increased emphasis for funders on accountability, ROI, and local impact, as federal funds dwindle.
A critical need for diversified revenue strategies, including monthly giving, corporate partnerships, and earned income, to buffer against federal volatility.
If your nonprofit depends on federal funding for core programs, now is the time to intensify private fundraising, local foundation outreach, and revenue diversification. Highlighting community-driven impact and transparent program models will be vital to maintain credibility and resilience amid shifting federal priorities.
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