How to Research Foundation Funders

For small nonprofits, identifying the right foundation funders can mean the difference between a successful grant application and a rejection letter. This guide walks you through how to research foundations systematically using publicly available IRS 990 data.

Step 1: Define Your Funding Needs

Before you start searching, clarify what you need:

• Project vs. general operating — Are you funding a specific program or seeking unrestricted support?
• Amount needed — What is your target grant size? Foundations have typical ranges they fund within.
• Timeline — When do you need the funds? Foundation cycles can take 6-12 months from initial inquiry to award.
• Geographic scope — Does your work have a local, regional, or national focus?

Step 2: Search for Foundations

Use FunderKit's search to find foundations that might be a fit. You can search by:

• Name — If you've heard of a specific foundation
• State — Many foundations give locally. Browse by state to find foundations near you.
• NTEE category — Find foundations that fund your issue area. Browse by category to explore education, health, arts, environment, and more.
• EIN — Search by a foundation's tax ID number for an exact match.

Step 3: Evaluate Giving Patterns

Once you find potential funders, review their profiles to understand their giving behavior:

• Total giving — How much does the foundation distribute each year? Foundations with larger giving totals may fund more organizations.
• Grant size range — Look at the min, median, and max grant amounts. If you need $50K and their median grant is $5K, it may not be the right fit.
• Giving trend — Is the foundation's giving growing, stable, or declining? Growing foundations may be more receptive to new grantees.
• Repeat vs. new grantees — A high repeat grantee percentage means the foundation tends to fund the same organizations year after year. A higher new grantee percentage suggests more openness to new applicants.

Step 4: Check Mission Alignment

The strongest grant applications demonstrate clear alignment between your work and the foundation's priorities. Look at:

• NTEE distribution — What categories does the foundation fund most? This is shown in the "What They Fund" section of each profile.
• Geographic focus — The "Where They Give" section shows which states receive the most grants.
• Past grantees — Review the grants table. Are there organizations similar to yours? If a foundation has funded organizations with missions like yours, that's a strong signal.

Step 5: Review Application Requirements

Before reaching out, check the foundation's application process:

• Unsolicited proposals — Does the foundation accept applications from organizations that haven't been invited? Some foundations only fund through board-directed grants.
• Deadlines — Note any application deadlines. Missing a deadline means waiting another cycle.
• Process — Some foundations require a Letter of Inquiry (LOI) before a full proposal. Others have online application portals.

This information, when available, is shown in the "Application Info" section of foundation profiles on FunderKit.

Step 6: Prepare and Submit

When you're ready to apply:

• Tailor each proposal — Generic proposals get rejected. Reference the foundation's priorities and explain specifically how your work aligns.
• Include data — Foundations want to see impact. Include metrics about your programs and the populations you serve.
• Be realistic about budget — Request an amount within the foundation's typical grant range.
• Follow up professionally — If you don't hear back within the stated timeline, a polite follow-up inquiry is appropriate.

Common Mistakes to Avoid

• Applying to foundations that don't fund your area — This wastes both your time and theirs. Always check NTEE alignment first.
• Requesting too much or too little — Research the foundation's typical grant size and stay within range.
• Ignoring geographic preferences — A foundation that gives 90% to California is unlikely to fund a project in Maine.
• Not researching the foundation — Foundation program officers can tell when an applicant hasn't done their homework. Use the data available to demonstrate informed interest.

Additional Resources

• Grant & Foundation Glossary — Definitions of common terms
• Our Methodology — How FunderKit processes IRS data
• Data Sources — Where the data comes from