Relationships Before Requests: Why Grantors Fund People Over Proposals
After over fifteen years of writing grants, I can say from experience that the grant sector is more competitive than ever. Where industry-standard win rates used to hover around 18–20%, they’re now closer to 10%. With federal funding being slashed, there are more needs — and more nonprofits seeking private dollars from foundations — than ever before.
For many organizations, this has turned foundation giving into something of a gold rush.
Everyone is chasing the same dollars, and the pressure is high. However, the truth is that those who treat grant funding as a numbers game — sending out as many proposals as possible to as many foundations as possible — are setting themselves up for disappointment. The nonprofits that stand out are those that treat foundations as partners, not payers.
The Landscape Has Shifted — Dramatically
The arrival of AI has only intensified competition. It’s now easier for anyone to generate a polished, persuasive proposal in a matter of hours. This means foundations are receiving more proposals, and some are even closing their open-application process due to the significant influx and being unable to keep up with review timelines.
Several of the foundations I work with have shared recent statistics that illustrate the dramatic surge in this trend. One funder that typically receives around 250 proposals per cycle is anticipating nearly 1,800 this year. Another shared it received 140 letters of intent (LOIs) last quarter, and only 13 progressed to the application stage. Yet another received 127 full applications, and only 18 were funded.
That’s not just competition — that’s oversaturation.
Many nonprofits still approach foundation funding as a way to bring in relatively “easy money.” But anyone who’s been in this space long enough knows that’s no longer true. In today’s climate, relationships are the differentiator.
The Myth of “Easy Money”
Let’s be honest, in the past, grant writers have been able to sit behind a computer, research quietly, and write compelling narratives without ever having to pick up the phone or meet face-to-face. That felt easier in many ways and kept many of us in our comfort zone.
However, the nonprofits that take the time to build genuine, human connections with their institutional funders — those that ask questions, show interest, and invest in relationships — are the ones that consistently see results.
Real Stories, Real Results
One of our clients was struggling to fund a key portion of their programming. After some brainstorming with us at Contour, they realized a member of their team had a personal connection with a significant regional funder. One quick email and a coffee meeting later, they were asked to send a simple executive summary outlining what they needed to make their program sustainable. The response? “The sky’s the limit - ask for whatever you need.”
Another client discovered they had a personal relationship with a program officer at a local family foundation. After a warm e-mail introduction and an LOI submission, they received a large, unsolicited check in the mail — funds that went directly toward meeting the immediate needs of their community.
These are not rare stories. They’re proof that relationships can yield far greater rewards than a cold, shot-in-the-dark proposal ever will. Foundations are comprised of people, and people give to those they trust.
Just as with major gifts, relationships with foundations require intention, strategy, and care.
How to Cultivate Relationships With Institutional Funders
At Contour, we recommend connecting with your institutional funders at least three times per year. Think of these as meaningful “touch points” — moments of engagement that build familiarity and trust long before you ask for anything.
Here’s what that can look like:
Touch 1: An Impact Update
Share a targeted update on your organization’s work, highlighting the impact of their past giving and the progress you’ve made toward shared goals. Keep it donor-centric — emphasize how their partnership makes your impact possible.Touch 2: A Personal Invitation
Invite them to coffee or lunch. Or, even better, invite them to your space for a tour or an event. Funders appreciate seeing their dollars in action, and these visits make your mission tangible.Touch 3: The Proposal
This comes last — after you’ve made the first two touches. By the time you submit a proposal, your organization shouldn’t be a stranger. You should already be on their radar as a trusted, mission-aligned partner.
Starting From Scratch: Building New Relationships
If you’re approaching a foundation for the first time, begin by doing your homework. Take time to understand who’s behind the organization — their staff, trustees, board members, and primary contacts.
Then, map your own network. Who on your board, staff, or volunteer base might know someone connected to that foundation? Share names internally and use tools like LinkedIn to identify potential overlaps. A warm introduction — even a casual one — can open doors that a cold email never will.
Once you’ve made contact, focus your messaging. Be crystal clear about why your organization is a great fit. Funders can tell when you’ve done your research. Reference their focus areas, recent grantees, or specific language from their mission statement. Explain how your work advances their vision for the world.
In short: show them you’re not just another nonprofit asking for money. You’re a mission-aligned partner offering them an opportunity to make meaningful impact.
Relationships Are the New Competitive Advantage
It’s easy to feel discouraged in today’s grant landscape. Lower win rates, AI-driven competition, and limited funding pools can make success seem out of reach. But don’t give up — just refocus your strategy.
Winning grants today isn’t just about writing great proposals. It’s about building great relationships. Foundations and institutional funders want to invest in organizations they know will steward their resources responsibly, as well as in partners who share their vision for change.
If you put in the work to cultivate genuine connections, align your messaging, and nurture those relationships over time, you’ll find that success is still out there — and often closer than you think.
