Preparing for Grants in 2026: What to Know Before You Apply

By Andra Ingalls, MPA If I could grab you by the shoulders, look you square in the eye, and speak one truth about funding in 2026, it would be this: Grants. Won’t. Fix. Everything.

Did you know that about 60% of nonprofit funding came from individual donors last year? And according to industry experts, about 30% of foundation grant proposals were awarded last year.

I don’t share this to dissuade you from pursuing grant funding, but to offer some practical insight. I’ve seen the pressure nonprofit leaders are under. The budget gaps. The team you’re working hard to support. It’s tempting to think, “If we could just get more grants!” 

Grants can help. They can strengthen your programs and expand your impact. They can’t, however, repair shaky systems or clear up a cloudy vision. They can’t replace steady leadership, either. Grants tend to magnify what’s already there. If something is strong, they strengthen it. If something is fragile, they reveal it.

If your systems feel frayed or your strategy feels a little scattered, now is the time to tend to it. Not when deadlines hit. Not during a spring scramble. Now, while there’s still room to think and breathe.

So here are three practical ways you can prepare for grant funding this year with a little more clarity and confidence.

1. Do a Funding Check-up

Before you pursue a single grant, take an honest look at last year’s revenue. This isn’t a formal audit or a deep dive into spreadsheets. It’s a fair scan of the basics. How much came from individual donors? Program fees? Grants? Major donors? Year-end appeals? Special events?

You must have a clear-eyed view of the big picture. Grants should be just one support piece of a healthy funding portfolio, not the foundation holding everything up.

Once you understand where your funding truly came from, then you can set goals for each revenue stream for the year ahead, including grants. Be realistic. Fundraising professionals often recommend that grants make up about 20 to 30 percent of total revenue. For some organizations, that might feel low. For others, it may already be a stretch.

The point isn’t to hit a magic number. It’s to build a funding strategy that’s sustainable and resilient. Grants are competitive, time-bound, and often restricted. They work best when they complement strong individual giving, event giving, and other streams.

Whatever goals you set, be honest, strategic, and sensible to protect your team, your mission, and your long-term impact.

2. Find Heart-Aligned Funders

Not every funder is the right fit, and that's a helpful reality. Do not waste your time chasing every open opportunity. Instead, focus on funders who share your priorities and values. Look for:

• Geographic alignment - Funds organizations in your city, region, or state, or clearly includes your service area.

• Mission and program fit - Stated priorities that closely match what you already do, not what you could stretch to do.

• History of similar awardees - Has funded organizations like yours in size, mission, and population served.

• Appropriate award size - Typical grants fall within a realistic range for your organization’s budget and capacity.

• Funding type match - Supports the kind of funding you need, such as general operating, program support, or capacity building.

• Clear eligibility guidelines - You meet their stated requirements without exceptions or creative interpretation.

• Openness to new grantees - Demonstrates a track record of funding first-time applicants.

• Values alignment - Language, approach, and stated values resonate with how your organization operates.

• Relationship pathway - Provides a way to learn more, ask questions, or build familiarity over time.

When you’ve made sure your goals and theirs align, you’ve improved the likelihood of creating a mutually beneficial match. 

3. Prepare for Applications and Follow-Through

Grants aren’t a magic wand. They won’t instantly fix staffing gaps, clunky reporting systems, or communication challenges. What they will do is give you the resources to strengthen what already exists. Before you apply, make sure your team knows who will manage reporting, track outcomes, and communicate with funders. That clarity on the front end will make follow-through smoother and set you up for renewal when the next cycle comes around.

• Are your financials clear and current?

• Is your mission statement sharp enough that someone outside your circle would understand it?

• Can you pull your impact data without a scavenger hunt through everyone’s inbox?

• Are you recording testimonials?

A readiness check-up lets you catch the small cracks while they’re still small. Where does your data need to be refreshed? Which internal systems need tightening? Tend these before deadlines start piling up.

That way, new opportunities don’t create chaos. You’re already prepared to apply and report with confidence.

Grants can’t fix what’s broken, but they sure can strengthen what’s already working. So, prepare now. Build stability now. Lead with clarity so that your organization is ready for real, lasting growth.

If you’d like help identifying where to start in your organization, let’s talk. Schedule a no-cost discovery conversation here: Andra’s Calendly.