This is a commonly asked question. There are many, many variables that affect a grantmaker's decision whether or not to respond favorably to a proposal. It is certainly a fair statement to make, however, that most foundations receive far more proposals than they can fund each year, and this becomes even more of a concern during difficult economic times.
By far the most frequent reason that foundations say no to a proposal is simply that not enough funds are available to respond to every request. A second common reason for rejection is that the proposal falls outside the funder's guidelines. Unfortunately, some grantseekers are unaware of or do not adhere to grantmaker guidelines. One simple word of advice we often give is "If you don't qualify; don't apply."
One source that gets close to answering this question is the Foundation Center's Foundation Growth and Giving Estimates, 2004 Preview, which provides information on the number of proposals received by various foundations and the percentage of those funded (this report, which begins on page 11 of the Preview, is based on 868 foundations that answered the survey question relating to number of proposals received and percentage funded).
For most foundations today, there is a great deal of information available as to their guidelines and funding priorities. The Foundation Center strives to make this information broadly available. Only a small percentage of foundations have Web sites, but for those that do, it is one of the best places to look to determine if your organization might qualify for funding. For the remaining foundations, The Foundation Directory Online and the Forms 990-PF private foundations file each year with the IRS are good sources of information as well. Refer to the FAQ, "How can I find out about grants for my area of interest?" for more details on finding the right foundation that matches your funding needs.
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