ARTICLE
Your Foundation Grant Report Is Due, But You’re Short On Your Goals. Now What?
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Updated - 03/21/2025
For many nonprofits, foundation grants are a critical source of revenue supporting programs and general operations. Frequently, securing these gifts requires development professionals and grant writers to submit proposals that include project goals to be achieved by the end of the grant period. As part of the proposal development process, development and program staff collaborate to define clear objectives as well as anticipated outputs and outcomes. This process ideally involves balancing two things: a desire to maximize impact; and the realities of staffing, budget, and circumstantial constraints. In the ideal scenario, priorities align, the foundation recognizes the value of the proposed work, and the nonprofit receives a grant award.
Even with the best intentions, grant activities do not always go as planned. Circumstances change, community needs evolve, staff turnover stymies progress, supplementary funding falls through, and leadership priorities shift. Development professionals and grant writers find themselves facing a reporting deadline with the realization that for one reason or another, the originally stated goals have not been met. A sense of dread begins to set in.
Now what?
5 steps to take when you’ve fallen short on your grant proposal goals
For nonprofits in this situation, two things are vitally important: 1) an evaluative mindset, and 2) an honest, open relationship with the funder. Your next steps can determine whether your organization will receive future funding or lose the funder entirely. That’s why taking the time to assess the situation, learn, and communicate your findings honestly are of utmost importance. Here are five steps to take.
- Evaluate – Take the time to gather all relevant parties and think critically about the problem. Make clear that the goal is not to assign blame or shame, but rather, to assess and adjust to best carry out your mission. Ask questions to get to the root of the problem. Were the original goals too ambitious? Was there a staffing challenge? Did tracking mechanisms fall through the cracks? Did circumstances require a shift in activities or priorities? Taking the time to identify the problem will only help strengthen not only future proposals, but programming as well.
- Adjust – Use the situation as a learning opportunity. How will you use this experience to inform your strategy moving forward? What will you do differently? Who will be responsible for adjusting, and by when? What will be required to avoid falling short on goals in the future? Create a plan and if needed, schedule regular touch points to monitor progress.
- Meet – If the funder is amenable, request a meeting ahead of the report deadline for an honest conversation. Come prepared to discuss what happened, what you and your team learned, and how you plan to move forward. Use this as an opportunity to strengthen the relationship and build trust. If you are open to input, request it. Most reasonable funders will recognize your expertise and appreciate your candor. In the best funder/nonprofit relationships, they will see themselves as true partners and learn alongside you.
- Report – Submit your report adhering to the deadline, taking accountability, reiterating the points you made in the meeting. Answer the questions that are asked, not the questions you wish to answer. Keep your answers clear and concise. Thank the funder for their investment and partnership.
- Follow through – Implement the changes you identified, whether that means adjusting future goals, addressing staffing challenges, or undertaking new activities more closely aligned with your mission. Check in regularly with team members to monitor progress and ensure internal alignment. Communicate your progress with the funder via their preferred method, whether email, meeting, or their report form.
The worst thing to do in this situation is to hide or overinflate actual activities or outcomes. After four years of decline, trust in nonprofits rebounded by 5 points to 57% in 2024, but the difficult work of regaining sector trust remains. By taking the time to analyze the situation, develop a plan to adjust, and communicate findings with foundation funders, nonprofits can not only increase their chances of retaining the funder, but also build trust in the sector overall.
Learn, adjust, and grow
Too many nonprofits operate under a fear of punishment for falling short on goals or anticipated outcomes, feeling the effects of traditionally inequitable funder/grantee power dynamics. While it is certainly true that there are funders who will pull funding if anything less than the original goals is achieved, the best foundation funders recognize the nonprofit’s expertise in the field, welcome honest conversations, understand the challenges nonprofits face, and appreciate the opportunity to learn alongside nonprofits who are willing to evaluate and adjust. These are the foundations that will often fund nonprofits over time, allowing the nonprofit to grow, evolve, and sustain services. And that is the best outcome a nonprofit can hope for.
How do you ensure that you’ll meet your grant proposal goals? Let us know in the comments!
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