Listed below are examples of the most common reasons why the Foundation might decline a grant request.
The Foundation receives many grant applications with goals that match our funding priorities. However well intended, a lot of these applications are submitted by organizations not yet capable of executing the result. For example, an organization wants to build a movie theater to promote community betterment. But, the organization has no location to build the theater, the estimates prepared to determine the budget, and no volunteer base to manage construction.
Many applications the Foundation receives are not sustainable, meaning that they are not able to run independently of Foundation monetary support past the grant period. The Foundation generally declines funding a project or program that is unable to continue after a year; that is not considered best use of our donors’ funds. For example, an organization requests $50,000 to drywall a new movie theater. However, there is no foreseeable way to complete the construction after the drywall is installed. Therefore, the Foundation would invest $50,000 in a movie theater that would never be completed.
All eggs in one basket
This happens when an organization is applying only to the Foundation, is not contributing any money from its own budget, and has not been successful at or attempted to cultivate donations from other sources. The Foundation expects organizations to leverage their own budget toward a project, and to at least attempt to raise funds from other sources.
Duplication of services
The organization wants to begin a project or program that already exists or is very similar to other services already offered in the community.
Not cost effective
The funding request is out of balance with the number of people it will serve, or the quality of life it will bring to the community. For example, an organization wants to buy a projector for the movie theater for $100,000 that will last five years and serve 200 people.
The agency’s programs are ill-designed or inadequately staffed. For example, an organization requests funds to construct a movie theater but they are going to hire a construction crew that specializes in home building because its cheaper. The movie theater will be managed by a person with no retail experience.