Across the nonprofit sector, an enormous amount of time is spent on grant applications that will never be funded. Some of that is unavoidable. A lot of it isn’t. When application processes are more complex than they need to be, the burden falls on the nonprofits least equipped to handle it, and the real value of every grant quietly shrinks.
A few intentional choices can make your process leaner, fairer, and more effective for your foundation and the nonprofits you’re trying to reach. Here’s how to build one.
Start with Strong Grant Guidelines
Before applicants ever submit a proposal, your grant guidelines set the tone. Clear, well-crafted guidelines are one of the highest-leverage tools available to a lean foundation; they do the work of filtering and communicating even when you’re not available to answer the phone. At a minimum, your guidelines should cover:
- Mission and program interests
- Geographic focus
- Grant types and typical size ranges
- Restrictions on what or whom you fund
- How to apply
Posting them prominently on your website reduces inbound inquiries and helps nonprofits self-select before investing time in a proposal. That alone can save your team hours every cycle.
Decide Between Receptive or Proactive Grantmaking
Once your guidelines are in place, determine how grantees will engage with your foundation:
- Receptive: You open the door to submissions from any eligible applicant. This welcomes diverse ideas and unexpected opportunities, and works especially well when your guidelines are doing their job of filtering out off-target applications.
- Proactive: Your foundation identifies and invites potential grantees to apply. This works well for foundations with a defined focus or limited capacity, though it may reduce exposure to ideas outside your existing network.
Many foundations find that a hybrid works best, staying open to new opportunities while proactively pursuing partners for key initiatives.
Consider a Screening Step
A screening step, such as a Letter of Inquiry (LOI) or a brief exploratory call, can be one of the simplest ways to save time on both sides. An LOI is typically one to two pages summarizing the applicant’s mission, project goals, and funding request. The benefits:
- Your team focuses on a smaller, more relevant pool before committing to a full proposal review
- Nonprofits avoid investing significant time in applications that aren’t a match
- It opens a line of communication that can support relationship-building over time
That said, it’s worth approaching this step thoughtfully. When an LOI functions as a mini application — requiring budget attachments, logic models, or multiple signatures — it can create additional barriers for smaller, grassroots organizations, which are often the ones serving communities most in need. If you use an LOI, keep it simple and true to its purpose: a brief check on fit, not a full proposal in disguise. An informal phone call can sometimes accomplish the same goal with even less burden on the applicant.
Ask Only for What You Need
Resist the temptation to request extensive documentation upfront. Tailor your requirements to what your team will actually use in decision-making. A solid baseline typically includes:
- A project description with objectives, timeline, and intended outcomes
- A detailed budget
- A one-time IRS determination letter for new applicants
It’s also worth thinking about the true cost of your process. Every requirement you add has a price, paid by the nonprofit on the other end. The concept of the “net grant” makes this tangible: when a nonprofit spends hours customizing financials or responding to unique questions, the real value of your grant shrinks accordingly. A $10,000 grant can easily net out to $9,000 or less once application costs are factored in. For smaller, community-based organizations with limited staff, that burden can be significant and falls disproportionately on grassroots groups. A few questions worth asking periodically:
- Which requirements take applicants the most time to complete?
- Is that information truly necessary for your decision-making?
- Could you achieve the same insight with a simpler ask?
If the answer is no, cut it.
Leverage Technology
Technology can go a long way in reducing administrative burden on both sides of the process. Grants management software, for foundations with the capacity to invest in it, can offer benefits like:
- Less repetitive data entry — Some platforms can prefill returning applicants’ organizational details and contact information from prior cycles, saving them time and reducing friction.
- Historical records in one place — Funding history, past applications, and prior correspondence can be stored centrally, giving your team a fuller picture of each grantee relationship without digging through old files.
- Automation for routine tasks — Things like application intake, reviewer routing, deadline reminders, and payment tracking can often be automated, freeing up staff time for higher-value work.
If a full platform isn’t feasible, standardized emailed submissions work too. Just keep your forms consistent and compatible with common software so applicants don’t have to navigate something new every cycle.
Beyond the Application: Building Lasting Relationships
A great application process does more than filter proposals; it sets the tone for how your foundation shows up as a partner. Be specific upfront about eligibility and timelines, offer brief feedback to declined applicants, and look for opportunities to connect beyond the application itself. When applicants feel respected and informed, regardless of the outcome, it strengthens your reputation and makes your grantmaking more impactful in the long run.
Discover More in the Foundation Guidebook
Whether you’re building your application process from scratch or refining what you already have, the Foundation Guidebook is your practical roadmap. From sample LOIs and grant guidelines to technology recommendations, it covers every step of the grantmaking process — helping you work more efficiently and fund more effectively. Get your copy here.
About the Author
Hannah Smith is the Manager, Content and Publications at Exponent Philanthropy, overseeing blogs, publications, and communication strategies. She works to engage audiences through thoughtful content, PR efforts, and equity-focused initiatives.