6 Ways to Secure Additional Foundation Funding
Sarah stared at her laptop screen, frustration mounting. Her nonprofit’s after-school program was running out of money halfway through the year, and their biggest foundation grant wouldn’t renew for another eight months. She’d already applied to every foundation she could find, with nothing but rejection letters to show for it.
Then, during a casual conversation at a nonprofit conference, a fellow executive director mentioned something that changed everything: “Have you asked your current funder if they have any discretionary money available?”
Sarah thought it was too simple to work. But desperate times called for creative measures. She picked up the phone and called her program officer at the foundation that had supported them for three years. Twenty minutes later, she had secured an additional $15,000 from the board member discretionary fund—money she never knew existed.
That conversation didn’t just save Sarah’s program; it opened her eyes to a whole world of foundation funding beyond traditional grants.
When most nonprofits think about foundation funding, they focus solely on traditional grant applications. But what if we told you there are six additional ways to secure foundation money that most organizations never explore? These strategies can help you optimize your funding relationships and discover new revenue streams you may not have considered.
1. Ask Your Current Funders for More
This might sound too simple, but it works more often than you’d think. If you have a strong relationship with an existing or past funder, don’t hesitate to reach out and ask if additional funds are available.
Foundation program officers often have leftover budget when other grantees can’t use their allocated funds or when emergency needs arise. A simple, direct conversation can sometimes unlock these unexpected opportunities. The key is having built that solid rapport and demonstrating your organization’s continued impact.
2. Tap into Emergency and Special Circumstance Funds
Foundations frequently set aside additional resources for special circumstances like natural disasters, economic downturns, inflation adjustments, or public health emergencies. We saw this in action during COVID-19, when many foundations released supplemental funding to help their grantees weather the crisis.
Don’t assume these funds are only available during major disasters. Foundations want their grantees to succeed, and they often have flexibility to provide extra support when organizations face unexpected challenges or increased costs due to inflation.
3. Explore Board Member Discretionary Funds
Here’s an insider secret: most foundation board members receive discretionary grant-making budgets to support causes they’re passionate about. These funds operate separately from the foundation’s main grant programs and often have less stringent application processes.
Research the board composition of foundations you’re already connected to and consider reaching out about discretionary funding opportunities. Board members appreciate learning about impactful work in their areas of interest.
4. Access Capacity Building Resources
Many foundations maintain separate budgets specifically for organizational capacity building. These funds might support:
DEI (Diversity, Equity, and Inclusion) training and initiatives
Strategic planning processes
Executive director transitions and leadership development
Technology upgrades and systems improvements
Board development and governance training
If your organization needs support in any of these areas, ask your foundation contacts whether capacity building funds are available. These investments help foundations ensure their grantees are positioned for long-term success.
5. Become a Service Provider
Think beyond the traditional grantee-funder relationship. Foundations also hire external service providers for training, consulting, evaluation, and other professional services. This money comes from their operational budget, not their grant-making funds.
If your organization has expertise in areas like nonprofit management, program evaluation, or specialized training, explore whether foundations might hire you as a vendor. This creates a different type of revenue stream while leveraging your organization’s unique capabilities.
6. Connect with Donor Collaboratives
Your foundation partners may participate in collaborative funding initiatives—pooled funds focused on specific issues like democracy, climate change, or social justice. These collaboratives often operate with separate funding streams and different criteria than individual foundation grants.
Ask your foundation contacts about any collaborative funds they participate in that might align with your mission. These opportunities can open doors to entirely new funding networks and partnerships.
Making the Most of These Opportunities
The key to success with these alternative funding strategies is relationship building and clear communication. Before exploring any of these options:
Ensure you have a strong track record with the foundation
Be specific about your needs and the impact additional funding would create.
Understand that not every foundation will have all these funding streams available
Approach conversations professionally and be prepared for “no” as an answer
Start the Conversation Today
Don’t let these funding opportunities go untapped. Review your current foundation relationships and identify 2-3 organizations where you could explore these alternative funding streams. A simple email or phone call could unlock resources you didn’t know existed.
Remember, foundations want their partners to succeed. By understanding the full range of funding mechanisms available, you’re positioning your organization to build stronger, more sustainable relationships with your foundation partners while maximizing your funding potential.
Ready to Unlock Hidden Funding Opportunities?
Don’t navigate these funding strategies alone. At Rural Pathways, we specialize in helping organizations like yours discover and secure foundation funding beyond traditional grants. Our team has helped countless nonprofits tap into discretionary funds, capacity building resources, and collaborative opportunities they never knew existed.
Ready to explore what funding opportunities might be waiting for your organization? Contact us today to schedule a consultation and learn how we can help you build stronger foundation relationships and maximize your funding potential.
Start by mapping your current foundation relationships and identifying which of these six strategies might be the best fit for your organization’s needs and existing partnerships, then let us help you make those connections count.
Citation: Anderson, Charity & Gilpin, Staci. (2025). 6 Ways to Secure Additional Foundation Funding. Rural Pathways News.