How Grants Are Awarded (and What Funders Are Really Looking For)

If you’ve ever stared at a grant rejection email and wondered, “What exactly are funders looking for?”, you’re not alone.

It’s one of the most common questions I get asked as a grant writer, and honestly, it’s an important one. You might think it all comes down to how good your writing is, how early you submit, or how amazing your nonprofit sounds on paper. And yes, those things matter. But grant awards are rarely based on a single factor.

Behind every “Congratulations, you’ve been selected!” message is a much more human, thoughtful, and often unpredictable process. Understanding it can transform how you approach grants, and increase your chances of being funded.

Step One: Alignment Is Everything

The very first thing reviewers look for is fit. They want to know whether your organization truly aligns with their mission, geographic focus, and funding priorities. Before you ever write a word, take time to research.

That means reading the entire Request for Proposals (RFP) or Notice of Funding Opportunity (NOFO). Look carefully at eligibility criteria, funding areas, and the populations they serve. Then go deeper, review the funder’s Form 990s, which are public financial disclosures that list who they’ve funded in the past, how much they gave, and in what categories.

If your organization doesn’t align with their focus area, it doesn’t matter how beautifully written your narrative is, it will likely be declined.

Funders appreciate applicants who clearly “get” what they do and tailor their applications accordingly. So start your grant journey with alignment. It’s the foundation of success.

Step Two: A Grant Proposal Is a Conversation, Not a Copy-Paste

One of the biggest mistakes I see new grant seekers make is copying and pasting from old proposals. While it’s great to have a boilerplate narrative as a starting point, every funder deserves a story written directly to them.

Your application is essentially a conversation. You’re showing the funder that you’ve read their guidelines, you understand their goals, and you can be trusted to execute a project that fulfills their mission.

When I write, I often start with the budget, yes, before the narrative. The numbers tell a story. A well-crafted budget shows that you’ve thought through your plan, your timeline, and your sustainability. Once your financials are in place, your narrative can align naturally with them, creating a cohesive story that reviewers can follow.

Pay attention to formatting too. If the RFP doesn’t specify fonts or sizes, stick with classics like Times New Roman or Arial, size 11 or 12. Avoid fancy formatting. This isn’t the time to show off your inner designer, clarity and consistency always win.

Step Three: Relationships Matter More Than You Think

Here’s a secret that seasoned grant writers know well…..funding is relational.

Yes, you can write an incredible proposal and get funded on your first try. But in many cases, the organizations that consistently win grants are those that build relationships with funders over time.

That means attending their webinars, asking thoughtful questions, emailing to clarify instructions, or even calling when appropriate. Show genuine interest in partnership, not just funding.

A while back, I wrote a grant for a nonprofit that had been referred by a state agency. My supervisor doubted we’d get it, but I had a feeling. I wrote the proposal, submitted it, and two hours later, it was awarded. That’s lightning-fast in the grant world. Why? Because the agency already knew the nonprofit. The trust was built.

The takeaway? Introduce yourself before you apply. Let funders see your organization in action. Post about your work on social media. Share your story through videos, photos, and real community impact, not just donation requests. The more visible and authentic you are, the easier it is for funders to remember you when reviewing hundreds of applications.

Step Four: Be Patient, Kind, and Consistent

After submitting, the waiting begins. And yes, it can feel endless.

Some decisions come within weeks, while others take months. Federal and state programs often require internal review panels, compliance checks, and approval chains. A six-month wait is not unusual.

During that time, don’t assume your application fell into a black hole. Instead, be proactive yet polite. A friendly email checking on the timeline or thanking the funder for the opportunity goes a long way. Funders are human too and they remember gracious applicants.

When you finally receive that notification (whether yes or no), respond with gratitude. If you’re declined, thank them anyway. Ask if you can apply again next cycle. If you’re awarded, celebrate, and keep in touch. A grant isn’t just a transaction; it’s the beginning of a partnership.

What Happens Behind the Scenes?

Ever wonder what really happens after you hit “submit”?

While every funder has their own system, most follow a similar process. Applications are typically reviewed by multiple people, often a combination of staff, external experts, or community reviewers. Each reviewer scores the proposal based on criteria like alignment, impact, clarity, and feasibility.

Applications with missing information, poor grammar, or vague outcomes often get pushed aside early. Reviewers simply don’t have time to interpret unclear proposals. Warm, well-written narratives that show competence, collaboration, and community understanding tend to rise to the top.

Timing can also play a surprising role. With rolling deadlines, funders sometimes review proposals as they come in, so early submissions can be more competitive. And sometimes, despite your best efforts, rejection just happens.

Maybe funding priorities shifted. Maybe their resources were limited this year. Maybe your reviewer had a tough morning and read your proposal through tired eyes. Grant writing involves both strategy and grace. Not every “no” means “never.”

Resilience Is the Real Secret

The best advice I can give to any grant writer or nonprofit leader is simple: don’t give up.

Most organizations aren’t funded the first time they apply. Funders often want to see that you’re serious, consistent, and capable of carrying out your mission over time. Applying again the following year not only increases your chances, it also shows persistence, professionalism, and partnership.

Keep refining your proposals. Track your submissions. Learn from feedback. The more grants you apply for, the stronger your writing becomes and the more recognizable your organization’s name will be to reviewers. Funders talk to each other, so give them something positive to talk about.

Compassion in the Process

It’s easy to get frustrated by rejections or delays, but it helps to remember the human side of funding. Reviewers have long days, tight deadlines, and stacks of applications to read. They might be juggling other responsibilities or limited budgets.

When you can approach the process with understanding, it changes everything. Even when a rejection feels personal, it usually isn’t. Sometimes, the timing just isn’t right. Other times, your proposal sparks interest but doesn’t fit that particular funding cycle.

One of the kindest things you can do is respond with grace. Thank the funder for their time, reaffirm your appreciation for their work, and express interest in future opportunities. Kindness leaves a lasting impression, and might just open the door for next time.

Bringing It All Together

So how are grants awarded?

It’s part science, part art, and part relationship-building. Funders are looking for clarity, alignment, professionalism, and a sense of trust. They want to see that your organization knows its mission, understands its community, and can manage funding responsibly.

But above all, they want to feel that spark, that connection between your purpose and theirs. The best grant proposals don’t just inform; they inspire. They remind funders why their work matters and how your organization helps make it possible.

The process can feel long and unpredictable, but with patience, persistence, and authenticity, you can absolutely succeed. Every application is a chance to tell your story, strengthen your credibility, and move closer to your next award.

Need Help Navigating the Grant Process?

At Fuel and Inspire, we help nonprofits, entrepreneurs, and mission-driven organizations research, write, and manage grants with strategy and heart.

From identifying the right opportunities and building compelling narratives to crafting budgets and evaluation plans, we make the process smoother, and more successful. Our team has helped secure over $1 million in awarded funding.

If you’re ready to grow your organization, let’s talk. Email us to schedule a free consultation or explore our resources. Together, we’ll help your mission shine and your funding goals become reality.

Want to learn about government shutdowns and nonprofits? Read: When Washington Stops, Nonprofits Feel It: The Grant World in a Shutdown