Private Funding Landscape in New Jersey

Over the past three years, private grant funding in New Jersey has undergone significant changes, creating both new opportunities and challenges for nonprofits.

Let's explore key data points and sector insights to give you a clearer picture of how funding in the Garden State is evolving—and how you can take advantage.

Note - Instrumentl makes it easy to navigate the grant landscape. Use smart matching to uncover hidden good-fit funding opportunities using the most comprehensive grants database in the U.S. Start your 14-day free trial today to unlock the full potential of your grant-seeking strategy.

Total Funding From Grantors in New Jersey

‍

Grant funding from New Jersey grantors reached an impressive $20 billion in 2022, marking a 33% increase from the previous year. This growth highlights the expanding opportunities for nonprofits in the state.

For 2023, funding totals appear lower, but that’s due to incomplete IRS data, as only part of the year’s information has been released.

$20 billion is a significant pool to tap into. The increase reflects growing support from private funders.

However, success in accessing these funds requires understanding how grants are distributed and aligning proposals with funders’ giving priorities.

By examining data like the median grant size, nonprofits can refine their strategies and focus on opportunities that are realistically within reach.

What Is the Median Grant Size in New Jersey?

‍

New Jersey nonprofits have reason to celebrate: the median grant size from state funders doubled between 2021 and 2023, reaching $5,000 even with incomplete data for 2023.

This increase is a positive sign for nonprofits, signaling that funders are overall allocating more resources per grant. However, it’s important to recognize that this median reflects statewide trends and may vary significantly by county (see section, “Grant Funding Distribution Across New Jersey Counties” below).

New Jersey doesn’t just stand out for its increasing median grant size from private funders. When we looked at federal, private, community or state, corporate, and association grants across the entire United States in our U.S. Funding Report, New Jersey also led in average grant award size.

Celeste Banks, Principal Grant Writer at CMB Grant Consultants LLC, shared with us her thoughts on these positive trends:
‍

“As a grant writer here in New Jersey, I believe that one big reason why NJ consistently secures the largest grant awards in the U.S. is its strong focus on strategic priorities like education, infrastructure, technology, and clean energy. Plus, our state's incredible diversity makes it a perfect candidate for funding aimed at supporting underserved communities. It's a winning combination!”

‍

Pro Tip: Strategically targeting the right funders and prioritizing quality over quantity in grant applications can make a significant difference. By focusing on funders whose goals align closely with your mission and refining your proposals to reflect their specific interests, you can improve your chances of securing funding while maximizing the impact of your efforts.

Which Funders in New Jersey Give Out the Most Funding?

‍

A closer look at New Jersey’s top funders reveals that Healthcare and Pharma organizations dominated the funding landscape in 2022, awarding 87% of all grant dollars.

However, when we looked at the number of grants awarded by these funders, we found that the majority of this funding went toward a small number of extremely large awards, often directed toward established organizations or initiatives with significant scale and reach.

‍

This is an important consideration for grant-seekers: while high-profile funders like Johnson & Johnson award millions, they may not be the best fit for every organization. Competing for these large-scale grants often requires extensive resources, established networks and relationships, and alignment with highly specific funding priorities.

Take a look at the chart below, where we compared the top funding sectors by their share in total funding awarded vs. their share in number of grants awarded.

‍

Philanthropy organizations accounted for just 4% of total funding but supported over 49% of the share in number of grants, representing the vast majority of grants awarded in the state’s top 20 list.

Here’s what this information means to grant professionals on a practical level:

• Focus on Healthcare/Pharma Funders for Large-Scale Projects: These funders often award significant grants, but typically focus on specialized or large-scale initiatives, making them best suited for nonprofits that align closely with their priorities.
• Look to Philanthropic Funders for Accessible Opportunities: Philanthropic organizations, with their broader distribution of smaller grants, provide more attainable opportunities for nonprofits looking to secure funding for a wider range of projects.

Understanding this dynamic can help nonprofits develop smarter strategies to align their funding goals with the right type of funder, whether they’re seeking a major award or aiming to secure multiple smaller grants to diversify their income.

When it comes to grant funding, state-level trends only tell part of the story. Examining funding at the county level reveals key disparities and insights that can help nonprofits better align their strategies with local opportunities.

In 2022, Somerset, Middlesex, Morris, and Mercer Counties led the state in total funding amounts awarded, while Cumberland, Warren, Hunterdon, and Sussex counties lagged far behind.

‍

What sets these counties apart?

• Top Performing Counties: These areas are home to larger populations and house robust industries such as healthcare and pharmaceuticals, which attract substantial grant funding. Their well-connected nonprofit sectors, combined with access to experienced fundraisers and robust community networks, likely contribute to their success.‍
• Lower-Performing Counties: By contrast, the counties receiving the least funding tend to have smaller populations, fewer nonprofits, and less visibility to major funders. These rural or less densely populated areas often face barriers like limited fundraising capacity and fewer large-scale initiatives that align with major funders’ priorities.

‍

Similar patterns emerge when analyzing the number of grants awarded. Counties with higher numbers of nonprofits and larger organizational infrastructures tend to receive more grants, reflecting their ability to meet funder requirements and sustain grant-seeking activities.

For example, Mercer County received an impressive 12,180 grants, while Cumberland County, with fewer nonprofits and resources, was awarded just 719 grants. This contrast highlights the challenges rural counties face in attracting comparable levels of funding, both in number and total amount.

However, looking at total funding in your county only provides part of the picture. It’s just as important to understand whether funding in your region is increasing or drying up, as this can directly impact your nonprofit’s strategy.

In 2022, grant funding increased across all New Jersey counties except for Cape May, Cumberland, Burlington, and Passaic. For most regions, this is a positive sign of expanding opportunities and growing support from funders.

‍

But what if your county’s funding is declining? Declining grant funding can pose significant challenges for nonprofits, but it also highlights the importance of being proactive and adaptable.

Here are a few strategies to help nonprofits build resiliency and diversify their funding streams:

• Diversify Revenue Sources: Look beyond traditional grants to secure funding from corporate sponsorships, individual donors, or community partnerships.
• Strengthen Grant Applications: Focus on crafting stronger, more compelling proposals tailored to funders’ priorities to increase success rates.
• Collaborate With Other Organizations: Regional partnerships can help nonprofits pool resources, share costs, and create joint initiatives that attract funders.
• Invest in Capacity Building: Enhance internal systems, like fundraising and reporting processes, to demonstrate organizational sustainability and effectiveness to funders.
• Expand Geographic Focus: Consider applying to funders outside your immediate county or state to broaden your opportunities.

For counties experiencing increased funding, nonprofits should continue to nurture relationships with funders and seize the opportunity to scale their impact while the funding environment is favorable.

As of 2022, the median grant size varied widely across New Jersey counties, with the highest in Essex County at $8,000 and the lowest in Mercer County at just $1,000.

This disparity underscores the importance of understanding local funding trends and aligning your grant-seeking strategy accordingly.

‍

Why this matters:

• Essex County nonprofits may benefit from targeting larger grant opportunities, aligning proposals with funders who distribute higher median awards.
• Mercer County nonprofits, while operating in a county that received a high total number of grants (12,180), must contend with the reality that most nonprofits receive smaller grants, with a few large awards skewing the total. This means focusing on smaller, attainable grants could yield better results.

Comparing your county’s median grant size to the state average can reveal how local funding trends align with your organization’s goals. This insight can guide your strategy, helping you decide whether to pursue larger, high-impact grants or focus on securing a mix of smaller awards to build a sustainable funding portfolio.

‍

In 2022, most counties saw increases in their median grant size, a promising trend for nonprofits. However, in Middlesex, Burlington, and Atlantic counties, the median stayed flat, while Gloucester, Salem, Monmouth, and Cumberland counties experienced declines.

Strategic considerations for nonprofits in these areas:

• Flat Median Grant Size: Nonprofits should focus on consistency by maintaining strong relationships with existing funders while seeking new opportunities to diversify income streams.
• Declining Median Grant Size: Nonprofits should prepare for tighter funding environments by emphasizing collaborative efforts, increasing proposal competitiveness, and exploring alternative funding sources outside their counties.

Understanding your county’s median grant size can help you craft realistic goals and maximize your organization’s chances of securing funding in a shifting landscape.

Analyzing per capita grant funding provides valuable insight into how resources are distributed relative to population size. This metric helps nonprofits and grant professionals understand where funding opportunities may be more concentrated or competitive, guiding more strategic decision-making.

‍

In 2022, Mercer, Middlesex, and Morris counties had the highest per capita grant funding, while Cumberland, Hudson, and Burlington counties ranked the lowest.

So, what does this all mean for New Jersey’s nonprofits?

• In counties with high per capita funding, nonprofits can leverage the momentum of strong funding activity but should still focus on differentiating themselves to compete for awards.‍
• Counties with lower per capita funding mirror similar trends we’ve seen in in other states—like New York and California—where rural areas consistently experience lower funding levels. Nonprofits in these areas should focus on regional collaboration, targeting funders outside their immediate area, and building capacity to present stronger applications.

Funders, too, can play a role by prioritizing equity-focused initiatives, increasing outreach to rural areas, and offering technical assistance to help smaller organizations compete more effectively.

New Jersey’s grant funding landscape is both promising and complex. With $20 billion in total funding in 2022 and rising median grant sizes in many counties, nonprofits have growing opportunities to secure private grants. However, disparities across counties and funders highlight the need for strategic planning.

Key Takeaways:

• Grant funding increased by 33% in 2022, showcasing the growing opportunities for nonprofits.
• Median grant sizes vary significantly, with Essex at $8,000 and Mercer at $1,000, emphasizing the importance of aligning grant requests with local funding trends.
• Per capita funding disparities reveal key opportunities: Mercer and Middlesex counties excel, while areas like Cumberland and Burlington require nonprofits to think creatively about collaboration and diversification.

As funding continues to grow, nonprofits must refine their approaches to stay competitive. Focusing on funder alignment, strengthening applications, and leveraging data-driven tools like Instrumentl will be critical for success.

Instrumentl makes navigating this landscape easier by centralizing tasks, providing smart matching to good-fit funding opportunities, and delivering actionable insights. Start your 14-day free trial today to unlock the full potential of your grant-seeking strategy and ensure your nonprofit thrives in New Jersey’s evolving funding environment.