Top 5 Mistakes Nonprofits Make in Grant Applications—and How to Avoid Them

"Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.” - Abraham Lincoln

It’s a tough reality: even the most well-meaning nonprofits sometimes miss out on funding because of avoidable mistakes. A grant proposal is more than a form—it’s a narrative, a strategy, and a promise all rolled into one. The stakes are high, but the good news is that you can avoid the common pitfalls that often lead to rejection.

This guide dives deep into the top five mistakes nonprofits make in grant applications, equipping you with the tools to not only sidestep them but also create proposals that rise to the top of the pile.

1. Neglecting to Align with the Funder’s Priorities 🪝

One of the quickest ways to doom a grant application is to submit a proposal that doesn’t align with the funder’s mission. Funders have their own goals, and they’re looking for projects that help them achieve those objectives. Submitting a proposal that’s even slightly off-mark signals a lack of research and attention to detail.

The Problem:

Imagine applying to an environmental foundation with a proposal for a workforce training program. Even if your program is outstanding, it’s not what the foundation is looking for, and your application will likely be rejected before anyone reads past the summary.

The Solution:

Alignment starts with research. Dive into the funder’s mission statement, guidelines, and funding history. Look at their website, annual reports, or announcements about past grantees to get a sense of their priorities. For example, if a foundation emphasizes innovation in STEM education, tailor your proposal to highlight how your program pushes the boundaries of traditional teaching methods in science or technology.

Craft your narrative in a way that reflects the funder’s language and values. This doesn’t mean bending your mission to fit theirs—it’s about finding the intersection between your goals and their priorities and emphasizing that overlap.

2. Submitting an Incomplete or Non-Compliant Application ❌

Funders are meticulous about their guidelines for a reason—they want to compare applications on a level playing field. When nonprofits ignore formatting rules, miss deadlines, or fail to include required documents, it signals a lack of professionalism and attention to detail.

The Problem:

Let’s say you submit an 11-page proposal to a funder that explicitly limits submissions to 10 pages. No matter how compelling your content is, exceeding the limit makes it likely that your proposal will be disqualified outright.

The Solution:

Before you start writing, review the funder’s instructions thoroughly. Create a detailed checklist of everything you need to include: letters of support, specific formatting (font size, margins), budget details, and submission platform requirements. As your deadline approaches, conduct a final review using this checklist to ensure nothing is missing.

If you’re unclear about any part of the application, don’t hesitate to reach out to the funder. Asking clarifying questions shows you’re serious about submitting a strong application and ensures you won’t make mistakes due to misinterpretation.

3. Failing to Tell a Compelling Story 💔

Facts and figures are important, but they’re not enough to make your proposal memorable. Funders are looking for more than a list of goals—they want to know the human impact of your work. Without a compelling story, your proposal risks blending into the sea of other submissions.

The Problem:
A nonprofit describes its program purely in technical terms: “We deliver educational services to 200 children annually.” While accurate, this statement fails to engage the reader or convey the transformative impact of the program.

The Solution:
Weave storytelling into your narrative to make your proposal come alive. Start with a real-life example or testimonial that illustrates the problem your organization addresses. For example, instead of generic data, describe how a child named Maria, who once struggled with math, gained confidence and excelled in school thanks to your tutoring program.

Pair these stories with relevant data to reinforce your credibility. For instance, you could add, “Maria’s story is just one of many. Last year, 85% of students in our program improved their math scores by at least 20%.”

Funders are more likely to remember—and invest in—proposals that resonate on a human level.

4. Overestimating or Underestimating the Budget 💵

Your budget isn’t just about numbers—it’s a reflection of your planning and foresight. An unrealistic or vague budget can raise concerns about your organization’s ability to manage funds effectively. On the other hand, a budget that underestimates costs can leave your project underfunded and make funders question your capacity.

The Problem:
A nonprofit submits a proposal with an inflated budget that includes unnecessary items like high-end office furniture, raising doubts about fiscal responsibility. Alternatively, another nonprofit underestimates staffing costs, leaving funders skeptical about whether the project can be delivered successfully.

The Solution:
Create a budget that is detailed, transparent, and directly tied to your project’s goals. Break down expenses into clear categories, such as personnel, materials, travel, and administrative costs. For each category, provide justifications that explain why the expense is necessary and how it contributes to the project’s success.

When possible, use real-world estimates or past project data to substantiate your figures. For example, instead of listing “training supplies” for $6,250, specify “100 textbooks at $50 each and 50 digital licenses at $25 each.”

A narrative budget can further enhance your transparency by explaining the reasoning behind your numbers in plain language.

5. Ignoring the Importance of Follow-Up 📞

A nonprofit submits a proposal, receives a rejection, and moves on without requesting feedback. They miss the opportunity to learn why they weren’t funded and how they could improve. Meanwhile, another organization that follows up builds a stronger relationship with the funder and secures funding in a subsequent cycle.

The Solution:
Always follow up after submitting a proposal, whether you win or lose. If you’re funded, send a thank-you note and provide regular updates on your project’s progress. Share success stories and data that demonstrate the impact of the funder’s support.

If your proposal is rejected, politely request feedback. For example, you might ask, “Could you share insights on how we can improve our application for future opportunities?” Most funders appreciate this proactive approach and may even provide tips for your next submission.

Avoiding Mistakes, Securing Success

Grant applications can be daunting, but by avoiding these five common mistakes, you’ll set your nonprofit up for success. From aligning with funder priorities to crafting realistic budgets and building lasting relationships, every step matters. With careful planning and attention to detail, you can transform your proposals into powerful tools for funding your mission.

Ready to take your proposals to the next level?
At Carinci Consulting, we help nonprofits navigate the grant writing process with confidence and expertise. Let’s get started.

🗓️ Schedule a complimentary strategy session.

Have questions? 📨 Email us at jennifer@carinciconsulting.com.