Part 1: Laying the Groundwork for Strategic Funding

About This Series

“Funding Forward in a Competitive Climate” is a two-part series designed to support rural nonprofits and community builders navigating today’s complex funding environment. With shrinking federal resources, rising competition, and persistent disparities in rural philanthropy, now is the time to move from reactive fundraising to strategic, mission-aligned action.

Here, in Part 1, we unpack the foundational shifts needed to build a resilient funding strategy. We explore alignment, prospecting tools, and the importance of cultivating existing funders.

In Part 2, we expand into diversification, donor engagement, volunteer pathways, and digital visibility. Together, these approaches form a comprehensive road map for sustainable growth backed by national insights and Rural Pathways’ hands-on experience.

Let’s fund forward intentionally, creatively, and together.

Laying the Groundwork for Strategic Funding

In today’s funding environment, competition is fierce. Stock market fluctuations, shrinking federal resources, and an influx of new applicants have all contributed to an increasingly crowded landscape, especially for rural organizations working to strengthen community resilience, expand access to care and housing, and drive local economic development.

Photo by Jonathan Borba on Unsplash

This challenge is not new. Even prior to 2025, rural organizations were operating at a significant disadvantage in the funding landscape. Despite serving nearly 20% of the U.S. population, rural communities have historically received less than 7% of all philanthropic giving nationwide. This long-standing funding gap has made it especially difficult for rural changemakers to secure the flexible, sustained investment needed to grow their impact.

In response, many organizations understandably take a “yes to everything” approach, applying to any grant that seems like a fit or launching urgent fundraising appeals in moments of need. But this reactive mode often leads to burnout, fragmented efforts, and missed opportunities. Now is the time to fund forward. Move from a scattershot approach to one that is intentional, aligned, and built for long-term sustainability.

At Rural Pathways, we work alongside chambers, nonprofits, collaboratives, and public entities to unlock transformational funding. Below, we’ve pulled together insights from national experts and our own experience to help you compete and build a proactive funding strategy that matches the scale of your mission.

1. Stop Chasing and Start Aligning

Many rural organizations find themselves stuck in a cycle of reactive fundraising: jumping at every new grant, event idea, or donor ask that crosses their desk, often without a clear strategy to guide what they pursue and why. While this hustle reflects commitment, it’s rarely sustainable.

The problem isn’t just reactive grant-seeking. It’s an overall funding approach that’s fragmented, opportunistic, and often out of sync with organizational goals, timing, and capacity. When funding decisions are made in the moment rather than mapped in advance, teams risk overextending themselves, burning out staff, and missing out on more strategic and transformational opportunities.

That’s why Rural Pathways developed the Strategic Funding Road Map to help rural organizations move from reactive to intentional. The Road Map aligns your mission, programs, and timelines with the right mix of funding streams, from grants and contracts to donors, planned gifts, and earned income. Instead of chasing funding, your team moves forward with focus, clarity, and purpose.

We created this customized tool to help rural organizations:

• Align programming and timelines with funder priorities

• Identify high-potential funding streams (grants, donors, public dollars)

• Reduce reactive fundraising and increase long-term sustainability

• Prioritize efforts based on organizational goals and capacity

Whether you’re launching a new initiative or strengthening core services, this Road Map brings clarity and strategy to your funding efforts so you can pursue the right opportunities at the right time.

2. Use Smart Tools to Find Aligned Funders

Photo by Christy White

Prospecting tools can help rural organizations overcome the “invisibility barrier” when it comes to large or national funders. Platforms like Candid, Instrumentl, and GrantWatch allow you to search by issue area and geography, narrowing in on funders that already support similar work.

Dig into their IRS Form 990, where nonprofits are required to report their expenditures in a list of 24 categories. Review past grantees. Look for patterns. A foundation that prioritizes rural health equity or place-based economic resilience is more likely to be a fit than one focused solely on urban initiatives or national policy.

Need support learning how to do this? Rural Pathways offers technical assistance packages that include guided funder research, help interpreting 990s, and tailored prospecting tools to build a strong and relevant grant pipeline. Whether you’re new to this or looking to deepen your strategy, we’re here to help you become confident and equipped.

3. Invest in Your Current Funders

Returning to the same funders isn’t playing it safe; it’s playing it smart. In uncertain times, many foundations double down on organizations they already trust. Now is the time to reconnect, update past funders on your progress, and invite them to support your next chapter.

Send a video or story from a program participant. Invite them to a site visit or community event. Ask if they would consider multi-year support. These actions build familiarity and strengthen relationships that can lead to sustained funding.

Photo by CHUTTERSNAP on Unsplash

If you don’t have a newsletter, start one. It’s a low-cost, high-return investment. A simple, consistent update keeps your work top of mind for funders and partners. Even if it doesn’t get opened, seeing your name in their inbox triggers recognition and reinforces your presence. Over time, that visibility builds familiarity and trust.

Next, in Part 2: Diversifying your revenue, engaging new giving pathways, and building long-term donor and volunteer relationships.

Want to strengthen your funding strategy or explore new giving pathways? Reach out to Rural Pathways to schedule a discovery call.

Citation: Anderson, Charity & Gilpin, Staci. (2025). Funding Forward in a Competitive Climate. Rural Pathways News.