How to Build a Realistic Grant Prospect List for Your Nonprofit

One of the most valuable things a nonprofit can do is maintain a thoughtful, well-researched grant prospect list. Not a list of every funder that has ever given to your cause — but a focused, prioritized list of funders who are genuinely likely to support your work, in amounts that match your organizational capacity.

Step 1: Start with Your Organization's Profile

Before you search for funders, get clear on what you're looking for. Document the following:

• Mission and program areas: What do you do, and for whom?

• Geography: Where do you work? Is your work local, regional, national, or international?

• Budget size: What grant size ranges are realistic for your organization?

• Organizational type: Are you a 501(c)(3)? A fiscally sponsored project? An international NGO?

• Existing relationships: Which funders have you worked with before? Who do board members know?

  
  

This profile becomes the filter you apply to every prospect. If a funder doesn't match at least most of these criteria, they probably belong on a 'watch list' rather than your active prospect list.

Step 2: Use Multiple Research Sources

No single database captures all grant opportunities. Here are the sources I use regularly:

• Candid / Foundation Directory Online: The most comprehensive database of U.S. private foundations and corporate giving programs. Many public libraries offer free access.

• Grants.gov: The go-to portal for U.S. federal grant opportunities. Free and searchable by category, agency, and eligibility.

• Form 990 filings: Publicly available tax filings for foundations that list grantees and award amounts. ProPublica Nonprofit Explorer makes these easy to search.

• Funder websites: Many foundations list their current grantees and funding priorities directly. Always read the most recent guidelines.

• Peer organization research: Look at the annual reports and acknowledgment pages of similar organizations. Who's funding them?

• Your network: Talk to colleagues, board members, and sector peers. Warm introductions to program officers are invaluable.

  
  

Step 3: Vet Each Prospect Carefully

Once you've identified potential funders, vet them. For each prospect, ask:

• Have they funded organizations similar to mine in size, mission, and geography?

• Are their current priorities a genuine match for my programs?

• What grant sizes do they typically award, and is that realistic for my needs?

• When is their deadline, and do I have time to prepare a strong application?

• Is there any connection between my organization and this funder?

  
  

Step 4: Prioritize and Tier Your List

Not all prospects are equal. I recommend organizing your list into tiers:

• Tier 1 — Strong fit, existing relationship or warm lead: These are your highest priority. Invest the most time and attention here.

• Tier 2 — Strong fit, no existing relationship: Worth pursuing, but may take longer to convert. Focus on building relationships alongside submitting proposals.

• Tier 3 — Potential fit, needs more research: These funders seem interesting but require more vetting before committing to an application.

  
  

A realistic active prospect list for most small-to-mid-sized nonprofits is somewhere between 15 and 40 funders, depending on the organization's capacity.

Step 5: Build in a Tracking System

A prospect list is only useful if it's maintained. Create a tracking spreadsheet (or use a donor management system) that captures:

• Funder name, contact information, and geographic focus

• Typical grant size, duration, and application deadline

• Status (prospect, LOI submitted, proposal submitted, funded, declined)

• Notes on relationship history

  
  

Review and update this list at least quarterly. Funders change their priorities, hire new program officers, and sometimes pause their giving. Staying current saves you from investing effort into a funder that's no longer a fit.

A Note on Realistic Expectations

A competitive success rate for most nonprofits is somewhere between 30% and 50% for well-matched prospects. The goal isn't to apply to as many grants as possible. It's to apply to the right ones, with proposals that are genuinely competitive.