When Your Funder Says, "No" Published in Grants for Cities and Towns, October 1994
How do you respond when your funder says, "no."? Successful fund raising is the result of strong relationships between your organization and your funder. Your response to the refusal letter can help develop a better relationship and improve your chances for future funds.
Understand what "no" means. Train yourself to stop responding to refusals as though you are being rejected. See these responses as requests for more information -- as one more juncture in the conversation between you and your funder. "No" is rarely the final word unless you allow it to be.
Review your proposal. When you receive the "no" letter, pull out your proposal and review it. You want to be certain that you have followed your funder's guidelines, your organization falls within eligibility requirements, your project is within the funding scope and meets the program needs of your funder. Assess whether your proposal was clear, concise, detailed and specific.
Call your funder. Call your funder and thank your contact for the opportunity to apply. Every application is a new chance to present your case. Every time you put forth your message, you teach your prospects more about your organization and you increase chances for future funding.
Learn about your funder. The best time to learn about your funder is before writing the grant application. If, however, you seem to have missed something, seek clarity on that issue.
If the reasons for refusal are "you don't fall within our mission...your funding goal was too high...", ask for examples of funded projects. Try to open a discussion on the goals and aspirations of the funder; try to get clarity on your funder’s interpretations of their mission and guidelines.
Ask for specific reasons for refusal. During your conversation, ask your contact for specific reasons you were refused. There is no need to defend your proposal. So, there is no need to respond to what may sound like criticism about your program or application. Your goal here is to get a clear idea of the criteria for success.
If the answer is "competition for funds was great...we couldn't fund everyone...", ask for specific ways in which the competition won. Was their case more compelling? their program more innovative? more a solution to universal issues?
Suggest a re-write. If you are getting the message from your prospect that the fault lies not in your program but in your proposal, suggest a re-write for the next round of funding. Seek your contact's comments and advice on making the proposal stronger. Let your funder know you're ready, willing, and able to meet standards.
Suggest new proposals. Bring up new program ideas. This is a perfect time to sell your agency and its mission. Your tone and proposal suggestions should be cooperative. You want your funder to know you are versatile and talented. Your message is, "we have a busy agency, we do a lot of important things. Surely, your funding organization and our institution can work together. Think of how many people we can help!"
Seek a meeting or subsequent conversation. As long as your are talking with your funder, they are involved. If a re-write is needed, close the conversation by offering to make the re-write by a specific deadline and ask for a meeting to be held shortly after a reasonable review time. Let the meeting be informal if that is more to the desire of your contact.
Follow your funder's advice. Do not seek advice you do not want to take. If your funder suggests a rewrite and you agree to a deadline, meet that deadline. If your contact suggests a detailed description of your new program and you promise to send it, do so promptly.
Cultivate the interest of your funder. Continue to develop the interest and empathy of your funder by keeping them abreast of new program developments, new techniques, new grants, new board members.
When your funder says "no" to a proposal, you have a chance to turn that refusal into a long future of friendship, cooperation, and funding. Your response to the refusal is a critical point for developing and strengthening your financial future.