Who Is Winning Grants And Why?

The fact that Australia’s grant industry is distributing an exponentially growing $90+ billion in funding every year is more than enough to make one pause for thought.

Australia’s grants landscape is booming, with an estimated $90 billion in annual funding available across various sectors. But despite this large pool of funds, not every nonprofit or charity is successful in securing grant money. Out of the 250,000 nonprofits operating in Australia (with around 61,000 registered charities), many continue to face challenges in securing funding. Why? Because winning grants isn’t just about what you need—it’s about how well you align with the priorities of funders.

The Australian Institute of Grants Management (AIGM) released its most recent Grants in Australia Report highlighting key findings and trends for nonprofits. Here are some lessons learned from the report and how your organisation can increase its chances of securing funding.

1. Organisation Size Doesn’t Determine Success

Contrary to what many assume, the size of an organisation does not correlate directly with its ability to secure grants. While large, well-known organisations may have more resources to apply for multiple grants, smaller nonprofits stand an equal chance of success if they focus on tailoring their applications to the grant’s specific goals. AIGM’s data indicated that even small nonprofits had win rates comparable to larger ones, suggesting that the real key to success is alignment, not size.

Lesson:

Whether your organisation is large or small, you need to focus on creating targeted, relevant applications that address the grantmaker’s goals. Understand that the most important factor is the quality of your application, not the quantity.

2. There’s No Single Formula for Success

AIGM’s research highlighted that there is no one-size-fits-all approach to winning grants. Different funders have diverse approaches to giving, whether it be conventional philanthropy, venture-style funding, or catalytic philanthropy. Venture philanthropy focuses on scalable, high-impact projects, while catalytic philanthropy seeks projects with transformative, long-term effects. The key takeaway here is that funders are looking for how your project can contribute to their specific goals.

Lesson:

Before applying for a grant, take time to understand the funder’s philanthropic approach. Are they looking for a project that solves an immediate issue, or are they seeking a solution that creates long-term, sustainable change? Align your project’s goals with the funder’s values.

3. Experience Matters—But Persistence Pays Off

The research shows that organisations with more than five years of experience in grant seeking have a higher success rate than those with less than three years of experience. However, the most successful organisations aren’t necessarily the oldest or the most experienced—they’re the ones that have refined their grant strategies over time. These organisations learn from their mistakes, collect feedback, and continually improve their applications.

Lesson:

Playing the long game in grant seeking is crucial. If your organisation is new to the grant space, don’t get discouraged by early setbacks. Keep refining your strategy, learning from past applications, and improving your understanding of funder priorities.

4. Sector Trends Influence Success

Certain sectors tend to receive more funding during specific periods, influenced by social and economic factors. For example, during the COVID-19 pandemic, health and welfare organisations saw a significant increase in funding due to their role in supporting vulnerable communities. Similarly, sectors such as education, arts, and environmental causes often experience funding surges during particular moments of national or global focus.

Lesson:

Make sure your organisation is well-prepared to take advantage of shifts in sector trends. Keep a close eye on public and political discourse, and ensure that your project aligns with current priorities.

5. Data and Evidence Are Essential

One of the most significant factors separating successful applications from unsuccessful ones is the ability to demonstrate clear, measurable impact. Funders want to know that their investments will make a real difference, and they rely heavily on data and evidence to make their decisions. Your organisation must provide strong metrics that illustrate the need for your project and how you plan to measure success.

Lesson:

Make sure your application includes robust data that backs up your claims. Whether it’s research, performance metrics, or beneficiary outcomes, you need to demonstrate your organisation’s ability to deliver results and show how you will measure the success of your project.

6. Funders Value Relationships

While application quality is crucial, building relationships with funders is equally important. Many successful organisations maintain ongoing communication with their funders, providing updates on projects even after the funding period has ended. This establishes trust and often leads to long-term partnerships.

Lesson:

Don’t view your relationship with funders as purely transactional. Keep them informed about the progress of your projects, thank them for their support, and involve them in your success. This can open the door to future funding opportunities.

7. The Importance of a Comprehensive Grant Strategy

The Grants in Australia report also highlighted that successful organisations are more likely to have a comprehensive grant strategy in place. This strategy doesn’t just involve applying for as many grants as possible but focuses on targeting the right grants for their projects. A long-term approach, backed by solid research, makes all the difference.

Lesson:

If your organisation doesn’t already have a grants strategy, now is the time to create one. It should include identifying the right grant opportunities, tracking deadlines, building relationships with funders, and continuously improving your applications based on feedback.

8. Tailored Applications Are the Key to Success

Finally, one of the most critical lessons from AIGM’s research is that tailored applications win grants. Grantmakers want to see that you’ve taken the time to understand their priorities and align your project with their mission. Generic applications don’t make the cut.

Lesson:

Take the time to research each funder and ensure that your application speaks directly to their goals. Demonstrate how your project fits into their vision and how it will create impact.

In conclusion, winning grants isn’t about the size of your organisation, how many applications you submit, or luck. It’s about strategy, alignment, and persistence. By learning from past applications, understanding funder priorities, and refining your approach over time, your organisation can increase its chances of securing the funding it needs to create real, lasting change.

Ready to start building your grants strategy? Whether you’re new to grants or a seasoned pro, Grant’d can help guide you through the process and improve your chances of success.