Sample Grant Rejection Letters: Examples & What to Do

Writing grant proposals is part of running a nonprofit. Receiving a few grant rejection letters is the inevitable outcome of writing grants. After spending so much time and effort drafting your grant proposal and preparing your application, it can feel frustrating to receive a grant rejection letter. However, we are here to tell you that it’s part of the process.

In this article, we will provide sample grant rejection letters to help you get more familiar with what you might receive. We will also offer tips on how to read your grant rejection letter and the most common reasons grants are rejected in the first place.

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If you write grants for your nonprofit, you are bound to receive a rejection letter. 

A rejection letter is much like it sounds. It is a letter letting you know the grantmaker has not awarded you the grant funding you requested.

Most grant rejection letters will quickly and specifically alert you that your funding inquiry was not awarded. Most of these letters will be short; foundations and grantmakers know that the last thing you want is to read a long letter just to learn that your project was not funded. Short letters are a sign of respect and understanding of the disappointment that will come with their message.

A grant rejection letter is not intended to be harsh or critical. Most grantmakers want you to know they appreciate your effort in submitting your application. As a result, it is common to receive feedback within these grant rejection letters. Read these letters with the mind to improving your next proposal. Even in just a few short paragraphs, a grant rejection letter can hold rich and valuable information on how to strengthen your future proposals.

Finally, a grant rejection letter may outline when and how to apply for future funding opportunities. Keep in mind that organizations want to fund impactful projects. These dollars are typically reserved for supporting nonprofit efforts and the grantmaker wants to encourage a deep and wide applicant pool. Pay attention to any notes of future grant cycles.

The next section of this grant rejection letter guide will provide examples of grant rejection letters for you to see what to expect if you receive one.

When actively seeking grants for your nonprofit, it is important to understand the significance of rejections. 

While rejection letters may initially evoke disappointment, they play a vital role in helping you improve the quality of your future grant applications. Let’s delve into the importance of grant rejection letters below.

A Reflection of the Competitive Nature of Grants

Receiving a rejection letter might give you the impression of a personal rejection or a proposal falling short, but it often simply reflects the intense competition for limited funding resources. 

Because grants are incredibly competitive, it's crucial to target your nonprofit's applications only toward those opportunities that align well with your mission. 

Pro tip: Instrumentl’s Go vs, No-Go evaluation tool can help you determine if a particular grant is worth pursuing. 

Valuable Feedback for Improvement.

Grantmakers often include feedback and constructive criticism in their grant rejection letters, which detail areas where your proposal could have been improved. 

When you properly analyze the feedback, you can refine future applications and make them even more compelling by tailoring them to the grantmaker’s expectations.

Building Resilience and Persistence.

Receiving rejection letters helps teach you resilience and the importance of learning from setbacks. 

As a nonprofit grant writer, you may not always get it on the first try. However, the more you write grants, the better you become and the higher your chance of success; persistence is the key to gaining proficiency in any endeavor.

Maintaining Relationships With Funders.

Rejection letters go beyond simply conveying decisions to decline a proposal. Many grantmakers include valuable information about upcoming grant cycles, application deadlines, and contact information in their letters as well. 

This information can help you maintain an ongoing relationship with the grantmaker, which can increase your chances of submitting a successful proposal in the future. 

A Chance to Re-evaluate and Refocus.

Grant rejection letters also offer valuable opportunities to re-evaluate and refocus your funding efforts for your nonprofit.

As we mentioned before, rejection letters from grantmakers will often provide specific details highlighting the strengths and weaknesses of your proposal, which can serve as a roadmap for improvement. 

Learning and adapting from your mistakes demonstrates your nonprofit’s commitment to continual improvement and your willingness to accept feedback and advice.

Most grant rejection letters are similar in form and content. The letter intends to respectfully, but clearly, notify the applicant that their grant proposal has not been selected for funding.

These next three sample grant rejection letters should help you familiarize yourself with what to expect. It is important that you become comfortable receiving these letters and do not lose confidence in your proposal. Receiving these letters is part of the grant writing process, and the following examples can help you prepare for this inevitability.

Standard “Sorry, Not This Time” Grant Rejection Letter

This sample rejection letter from a foundation is the most simple and common letter you might receive. The foundation quickly reveals that you were not selected for funding, thanks you for your application, and offers a small token of support.

Do not take the concise structure of the letter as an indication of a lack of interest in your project. Note the opportunity and timing for the next grant cycle and move on.

Missing Requirements/Ineligible for Consideration  Grant Rejection Letter 

In this example of a sample letter of rejection for a business proposal, a similar format to the prior letter is used. They cut to the chase in disclosing that the proposal would not be funded. However, they also give feedback on where the deficiencies were in the proposal and offer the opportunity to reach out for more information.

In this instance, you can see the interest of grantmaking organizations in supporting grant applicants toward viable and worthwhile funding requests. This organization even offered to provide feedback when the applicant would not meet the conditions of the grant due to their state of operation.

Another key takeaway from this grant rejection letter is the importance of paying attention to the grant application requirements. Resources like Instrumentl can help nonprofits find the best grant opportunities that they qualify for through intelligent matching to avoid a rejection letter like this one.

Regrettably Denied Grant Funding Rejection Letter (with Details) 

In this sample letter denying request for funding, the nonprofit reached out to a foundation outside of a grant cycle. It is likely that you will come across foundations that align with your mission but aren’t offering grants at the time. These are foundations to focus on partnerships with. Do not feel apprehensive to reach out because even if you are rejected, you might start fostering a relationship with their organization.

This letter shows a sample of a response you might receive. The foundation was not able to award any funding for the request, but they expressed high praise for the project and the opportunity for potential future funding. They also offered a new deadline for resubmission. Be sure to track these letters and feedback.

If you would like to set up easier processes for tracking these kinds of deadlines, Instrumentl provides grant tracking tools that can help.

You can see, grant rejection letters are typically short and to the point. You will read quickly that your project was not selected for funding. Many letters will provide specific feedback on why your proposal wasn’t selected. Others will simply inform you that you were unsuccessful.

If a grant rejection letter provides feedback, take time to consider their suggestions. These comments are coming from a grant review committee and will be similar to many other review committees. You should plan to receive a few rejection letters, and you should hope that you are able to learn a bit about better grant writing through the rejection process.

Thank You Letter After Rejection Sample

And, as a bonus, we are including an example of a possible thank you letter after a rejection letter.

Sending a response to a grant rejection letter may set you up for a positive reputation going into another grant cycle.

A thank you letter does not make future funding a guarantee, but kindness and gratitude is always appreciated. It can also help secure your nonprofit some name recognition in the event your proposal is read in a future grant cycle.

Check out our blog posts on how to respond to grant rejection letters. In the next sections, we will talk a bit about how to read and learn from your grant rejection letter.

So, you received a grant rejection letter, but what does it mean? Getting a rejection letter does not mean it is time to give up. Use the rejection letter as a learning tool for your next grant writing process.

There are a few key things to understand when you read your grant rejection letter.

It will be to the point. At times, straightforward letters can come across as harsh. Rejection letters are written to get right to the point that you were not awarded the grant funding. The letters must be written this way so there is no confusion. Do not take the letter personally.

Your project is still valid. Unless the letter specifically outlines why or how your proposal is not feasible, you have a perfectly viable project. Do not read a rejection letter as if it means your project is not something to continue to pursue funding for.

The grantmaker wants to keep you in good relations. It is important to read a rejection letter in the tone that it was written. The large majority of grantmakers and foundations hope you will maintain a good relationship with them and would encourage you to apply again. Reviewers and grant decision-makers are not reading proposals with the hope of rejection. They want to find the best fit and best application prospects. They value your submission.

Try again. When you read a rejection letter, make sure to take note of any productive feedback you can incorporate into your next proposal submission. Some rejection letters will give specific feedback and request that you resubmit in the next cycle. They mean it. Make the recommended changes and resubmit on the indicated timeline.

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If you want to avoid receiving grant rejection letters, it is worthwhile to understand why grant applications are often denied. 

While some grant applicant pools are incredibly competitive and the reason for rejection may not be more than the significant number of proposals, there are some specific things to avoid. Here are the top reasons grant applications are rejected:

1. Incomplete applications: 

Likely the most common reason for rejection is the lack of required or requested information. Be sure you are thorough and complete in providing all requested information. 

2. Not following guidelines: 

You must be certain that you are following all the listed guidelines for your proposal and submission process. Typically, not following the posted guidelines is grounds for your proposal not to even be considered. Typical guidelines to follow are submission deadlines, application format, and eligibility requirements.

3. Mission misalignment: 

At times, your proposal is just not a good fit with the mission or goals of the grantmaker or foundation. It is worthwhile to check that your mission aligns with the organization or the intent of the grant funds before submitting a proposal.

4. Poorly presented proposal: 

If your budget does not match your narrative, or you do not clearly and successfully articulate your project, you may be rejected. Your proposal is how the reviewers will paint a picture of your intended project execution. Do not expect them to fill in gaps or guess at any details. How you present your plan is how it will be read. It is helpful to read successful grant proposal examples to know what solid proposals look like.

5. Not grant-ready: 

It is also possible that your nonprofit organization is just not ready to receive grant funding. This can be due to a variety of factors within your nonprofit, such as your organizational structures, financial situation, and programmatic strength. Instrumentl provides a detailed analysis you can use to consider if your nonprofit is grant-ready.

There are innumerable reasons for your grant proposal to be rejected. This list outlines just a few of the most common reasons given in grant rejection letters. Keep in mind there will be times when your proposal is solid and more than satisfactory yet does not receive funding. It may mean that the reason for selecting another applicant came down to preference within the review process.

Even with the most objective review, some evaluations are too close to call and require a consensus selection based on reviewer opinion. Keep your enthusiasm for the value of your project and your commitment will shine through in future grant applications. You can further explore more reasons why grant proposals are rejected in this Instrumentl workshop.

As we explained earlier, everyone gets a rejection letter at some point. While they are never fun when they arrive in the mail, they present opportunities for improvement. 

Let us take a look at what to do when you get a rejection letter and how you can turn the situation around:

Analyze the Feedback

Since most rejection letters contain constructive criticism, it would be helpful if you took a step back and perused the feedback you received. 

Read carefully and pay attention to any specific comments or suggestions from the grantmaker. Internalize the response, consider what you could have done better, and implement these improvements in your future grant applications.

Reach Out for Clarification

If the feedback is not clear, you can reach out for clarification. As we learned earlier, a well-drafted rejection letter will include contact information. You can reach out to the funding organization to ask for clarification.

When reaching out for clarification, it is important to note the following:

1. Reach out with the specified or preferred contact method. It increases your chances of getting a response.

2. Keep your tone professional, polite, and respectful to build a positive and professional relationship. You can check out this guide for more details on how to respond to grant rejection letters. 

3. Be specific in your request: The more targeted your inquiries are, the more likely you will get a meaningful response. Also, it shows you have a high level of professionalism.

4. Communicate your eagerness to learn and improve.

5. Carefully document the feedback; this will help you revise your proposal and improve future applications.

6. Lastly, express gratitude for their time and response.

Refine and Resubmit

After receiving clarification and analyzing the feedback, create an action plan on how you plan to address the feedback and improve your proposal moving forward. 

As we mentioned earlier, some grantmakers will include an invitation for you to apply during the next funding cycle. However, before you send out an improved version of your proposal, you should go through the following steps:

1. Prioritize key issues highlighted in the grantmaker’s feedback. Be thorough but maintain clarity and conciseness while revising your grant proposal.

2. Proofread and edit your revised application. You can get a third party to do this, as a fresh set of eyes can provide a unique perspective and highlight some things you might have missed. 

3. Ensure your resubmission highlights the changes you made from the feedback you received. Before you submit, re-evaluate your proposal to see if it aligns with the grantmaker’s objectives and priorities. 

4. Finally, respect the deadlines for resubmission to increase your chances of getting funded.

Explore Alternative Funding Sources

It can be risky to rely solely on one source for funding as a nonprofit organization. Multiple revenue streams can help your long-term sustainability. 

Aside from grants, there are other sources of funding you can explore for your nonprofit, such as:

• Individual donations
• Corporate sponsorships
• Fundraising events
• Social media campaigns 
• And more! 

Foster Relationships With the Grantmaker

It is essential to build a sustainable and long-term relationship with grantmakers. In this case, the first step to building these long-term relationships begins with your response to the grant rejection letter.

Make sure to maintain clear and open lines of communication with grantmakers, regardless if you win funding or not. Ensure that all interactions, from initial inquiries to follow-up reports, are professional, courteous, and timely.

You should also make sure to express gratitude for their feedback and time in every interaction.

Review Internal Processes

Reviewing your internal processes in response to a grant rejection letter is an important step to learn from the experience and enhance your grant-seeking efforts. 

Here is how to effectively assess and improve your internal processes:

1. Discuss the rejection letter and the feedback provided with your team and all relevant stakeholders.

2. Ensure your project aligns with your nonprofit's goals. Maintain a focused outlook and eliminate any ambiguity in your proposals.

3. Check for consistency between your narrative, budget, and any supporting documents. All components should align seamlessly.

4. Develop standardized documentation, such as grant application templates, budgets, and other supporting documents. This would ensure uniformity in all your applications and streamline processes.

5. Seek professional help: Sometimes, it is best to outsource your grant writing to experts and consulting services if necessary. .

By analyzing the feedback provided, reaching out for clarification, and taking concrete steps to refine and resubmit your proposal, you can turn a rejection into a future success.

Writing grant proposals is a time consuming process. It can feel upsetting to receive a rejection letter after you put so much time and effort into drafting your proposal. After reading this article, you should know that rejection letters are part of the grant writing process.

This article also provided you with sample grant rejection letters, insight on how to read your rejection letter, and common reasons why your grant proposal may have been rejected. We hope this information helps you feel a little less sting when you receive a rejection letter.

For more information on the grant writing process and how to find the right grant opportunities for your nonprofit, sign up to try Instrumentl free for 14-days.