In the intricate world of nonprofit fundraising, grants are an invaluable resource. They provide the financial fuel that powers organizations' missions and turn dreams of positive change into reality. As we’re closing out Q4 2023, it's a perfect time to reflect on the ever-evolving landscape of fundraising through grants. 

OBSERVATIONS CONCERNING FUNDRAISING THROUGH GRANTS - 2023

• Anecdotally, grant professionals are reporting higher rejection rates in 2023. This trend was first noticed in 2022.
• Higher rejections are likely due to a range of factors including higher application activity/competitiveness as non-profits and agencies face inflation, coupled with foundations’
  concerns about an unpredictable stock market.
• Foundation giving levels correspond with market performance and in 2022, stock market returns were down. The good news is that current market trends are positive.
• In one study conducted at the start of 2023, for the first time in years, the proportion of foundations anticipating declines in giving exceeded those expecting increases.
• Chart regarding giving activity changes in recent years (showing the spike during COVID-19, and the more recent decline). (Source: Foundation Giving Forecast Survey, 2017–2023. Figures are unadjusted for inflation. Retrieved from Candid.org).
  
  

As we explore the intricate landscape of grant fundraising in 2023, it's also crucial to set our sights on what lies ahead. The world of philanthropy and grant making is ever-evolving, and this journey doesn't stop at the end of this year. In the spirit of continuous learning and preparation, let's peer into the future and anticipate what may await grant fundraisers in 2024. 

OUTLOOK ON FUNDRAISING – 2024

Grant dollars may increase as stock market trends remain positive. 2024 should see an uptick in grant dollars expended as a direct response to positive stock market trends. But, as organizations are facing the pressure of inflation, the grant environment will remain very competitive.

Billions in Funding for Mental Health and Substance Use Services, particularly addressing the overdose epidemic driven by opioids, like Fentanyl, will see a substantial boost in 2024. Other top areas of focus include DEI initiatives and climate/sustainability. Education funders are focusing on DEI and mental health, and less on academics.

Foundation Program Officers are increasing pre-application collaboration. In fact, an industry recommendation is to talk to multiple program officers within a foundation during the cultivation process. Each Program Officer has a unique take on your project, which supports ideation and strategy prior to landing on how to craft a competitive proposal matching the foundation's desired outcomes. In the same measure, if the foundation doesn’t allow pre-proposal conversation, it’s increasingly acceptable to email the foundation prior to submission to let them know to expect your application.

Donor Advised Funds continue the climb as a preferred method of giving, which seems to be opening the doors of wealth advisors managing the funds. It’s recommended that organizations communicate, at least quarterly, with fund managers on current accomplishments to keep their mission top of mind for the money managers.

Resources: 

• 20 Nonprofit Experts Share Trends To Watch In 2024, Forbes, Candid Philanthropy Digest, December 2023
• Foundation Giving Forecast Survey, 2017–2023. Figures are unadjusted for inflation. Retrieved from Candid.org
  

Created in collaboration with Marcie Wagner.

As we step into the future, armed with the insights and knowledge from our journey through 2023, let's embrace 2024 with open hearts and minds. We look forward to accompanying you on this next chapter of the grant fundraising adventure. At Fox Grants, we specialize in grant prospect research, grant writing, and grant execution.