Examples

Why a Grant Application Might Be Declined

Each year, the Fayette Community Foundation receives many thoughtful and passionate proposals. While we are honored to learn about the work being done in our community, not all applications are approved for funding. Below are common reasons why a grant request may be declined:

Timing Isn’t Right

Even well-aligned projects may be declined if the organization isn’t ready to carry them out. For instance:

An organization proposes building a community center—but they don’t yet have a secured location, construction estimates, or a volunteer or staffing plan. Without a clear foundation, the project cannot move forward successfully.

Lack of Sustainability

We look for projects that can thrive beyond the initial grant period. If a project cannot continue without ongoing Foundation funding, it’s unlikely to be supported.

For example, an organization requests $50,000 to install drywall in a future community center. However, there’s no timeline or funding plan to finish the remainder of the construction. Investing in a stalled project is not a responsible use of donor funds.

No Funding Diversity

The Foundation encourages organizations to share in the financial responsibility of their projects and seek support from multiple sources. Applications may be declined when:

  • The organization relies solely on the Foundation for funding

  • No funds are committed from the organization’s own budget

  • No other fundraising efforts are underway

We want to see applicants who are building strong, diverse partnerships to support their work.

Duplication of Services

Applications are sometimes declined because the proposed project closely mirrors an existing service already available in the community.

If another organization in Fayette County is already offering a similar community wellness program or youth center, we may encourage collaboration rather than duplication.

Not Cost-Effective

We look at the cost-to-impact ratio of each request. If the investment doesn’t significantly benefit the community, the application may not be approved.

For example, an organization requests $100,000 for a sound system in the new community center. The system would serve about 200 people over five years, which may not justify the expense.

Quality or Capacity Concerns

A strong proposal includes a well-designed program with appropriate staff or partners to execute it. Applications may be declined if:

  • The project appears underdeveloped or loosely planned

  • Staffing or vendor choices raise concerns about expertise or execution

For instance, an organization plans to build a community center using a contractor who specializes only in residential homes because they’re less expensive. Additionally, they’ve assigned program leadership to someone with no experience managing a public facility.

Doesn’t Meet Grantmaking Guidelines or IRS Requirements

The most common reason a grant application is denied is that it does not meet the Fayette Community Foundation’s grantmaking criteria or align with IRS-defined charitable purposes.

As a 501(c)(3) public charity, the Foundation is legally bound to follow certain rules when distributing grant funds. These include:

  • Supporting projects that fall under IRS-qualified charitable activities

  • Ensuring that funding is directed toward eligible organizations

  • Following donor restrictions and Foundation policies

Even well-intentioned projects may be ineligible for funding if they fall outside these boundaries.

For example, a proposal might seek funding for a worthwhile initiative, but if it primarily benefits a for-profit business, advances a political campaign, or provides individual financial assistance, we are not legally able to support it.

Before submitting an application, we strongly encourage all applicants to carefully review our Grantmaking Guidelines. This can help save time and effort, and ensure your request aligns with the types of projects we are able to fund.

If you’re unsure about your application’s readiness, we encourage you to reach out before applying. We’re here to help guide you!

Contact: Nyah Frank at nfrank@givetofcf.com or (765) 827-9966.