When to Say No to a Grant Opportunity (Yes, Really)

Saying no to money feels counterintuitive—especially in the nonprofit world, where every dollar can make a difference. But sometimes, the smartest move you can make is to walk away.

Whether it’s a grant that doesn’t quite fit, a funder with too many strings attached, or an opportunity that would pull your team off course, knowing when to say no is a critical part of a sustainable fundraising strategy.

Here’s how to recognize when a grant opportunity isn’t right—and how to confidently pass without second-guessing yourself.

🚩 1. The Opportunity Doesn’t Align with Your Mission

If you have to twist your program to make it fit the funder’s goals, that’s a red flag.

Misalignment might look like:

• Applying for an education grant when your core work is housing

• Trying to launch a new program just to qualify

• Changing language or impact metrics to “sound right” for the funder

Chasing money that doesn’t align with your mission can dilute your focus and confuse your funders down the line.

🧩 2. You Don’t Have the Capacity to Deliver

Even if the funding seems like a perfect match, it’s not worth it if your team can’t realistically deliver the work.

Ask yourself:

• Do we have the staff and systems to implement this?

• Will this stretch our team too thin?

• Can we report on outcomes as required?

If the answer is “not really,” it’s okay to pass—and revisit when your capacity grows.

📋 3. The Requirements Outweigh the Return

Some grants come with hefty compliance demands, tight timelines, or restrictive use of funds.

If a $15,000 grant requires:

• A 20-page narrative

• Four letters of support

• A custom evaluation plan

• Monthly reporting for two years...

It might not be worth it—especially if similar results can be achieved with fewer hoops elsewhere.

⛔ 4. The Funders’ Values Don’t Match Yours

Do your research. Sometimes, funders support causes or companies that conflict with your organization’s values or community.

If accepting money would compromise your credibility or relationships with stakeholders, it’s okay (and wise) to decline. Integrity matters.

✅ 5. You’re Only Saying Yes Out of Fear

Scarcity mindset is real in nonprofits. It whispers, “You can’t afford to pass this up.”

But here’s the truth: every “yes” to a poor-fit opportunity is a “no” to something better. When you protect your time, energy, and mission, you create room for the right opportunities to find you.

Final Thoughts

Not every grant is a good grant. Strategic fundraising isn’t about saying yes to everything—it’s about saying yes to what truly fits.

So the next time an opportunity pops up, pause and ask:
Is this right for us right now?
If the answer is no, trust yourself. That’s not a failure. That’s leadership.

Sheena Link is the co-founder of PureGrant, an AI grantwriting platform that helps nonprofits write smarter, save time, and stay focused on the funding that truly fits.