5 Common Misconceptions About Grant Funding (and What to Do Instead)
- Shanon Pettibone
- Mar 25
- 3 min read
If you’re a nonprofit leader, you’ve probably heard someone say, “You should just apply for a grant!” Maybe you’ve even thought it yourself. Grants can feel like the answer to all the fundraising stress—and while they can be an incredible resource, they’re not a quick fix.
In fact, there are some common misconceptions about grant funding that I hear all the time—especially from small or newly-formed nonprofits. If you’ve ever felt confused or discouraged by the process, you’re not alone.
Let’s bust a few myths and offer some clarity so you can feel more grounded, confident, and empowered on your grant journey.
Myth #1: “There’s free money out there—you just have to ask for it.”
This is one of the most common things I hear. And yes—grants can be powerful sources of funding. But they’re far from free.
Funders are investing in impact, not just ideas. They want to see that your organization is stable, mission-driven, and capable of following through on what you propose.
✅ What to do instead:Focus on building a strong foundation—clear mission, documented need, measurable impact, and financial transparency. That’s what makes your work fundable, not just the fact that you’re doing good things.
Myth #2: “Grants will save our organization.”
It’s tempting to think of grants as the rescue rope—but relying solely on grant funding is risky. Grants are one piece of a diversified funding strategy, not the whole puzzle.
✅ What to do instead:Work toward financial sustainability by combining grants with other income sources—like individual donors, events, sponsorships, or earned revenue. Think of grants as growth fuel, not life support.
Myth #3: “We should apply to as many grants as possible.”
More isn’t always better. Applying for every grant you find—regardless of alignment—can lead to burnout, rejection, and wasted time.
✅ What to do instead:Be intentional. Focus on funders whose values and priorities align with your mission. Take the time to build relationships and tailor each proposal. It’s about quality, not quantity.
Myth #4: “We’re too small to get grants.”
Small doesn’t mean incapable. In fact, many funders want to support grassroots organizations doing meaningful work in their communities. The key is showing that your work is impactful and your team is ready to manage funding responsibly.
✅ What to do instead:Start small. Look for local foundations, community grants, or family funders who support smaller budgets. Highlight your reach, your passion, and your track record—even if it's early-stage.
Myth #5: “We can’t apply for grants until we have everything perfect.”
Perfection is not the goal—readiness is. You don’t need a 50-page strategic plan or a team of development pros to begin seeking funding. You just need a solid understanding of your mission, programs, and the ability to deliver results.
✅ What to do instead:Do a grant readiness assessment (psst—I offer these!). Identify your gaps and take steps to fill them. You don’t have to be perfect to get started. You just need to be open, prepared, and committed to growing.
In Closing…
Grant funding can be transformational—but only when approached with clarity, strategy, and heart. If you’re feeling unsure or overwhelmed, know this: you don’t have to figure it out alone.
At Pacific Willow Consulting, I help nonprofits get truly ready for funding—without the overwhelm, burnout, or perfection pressure.
📩 Ready to bust some myths and get on the path to confident grant seeking?
Comments