We’ve all seen philanthropy at its best—lifting up organizations and empowering them to make a difference. But let’s be honest. Sometimes, despite the best intentions, funders unintentionally create more fear than support.
After 25 years of advising ultra-high-net-worth donors and foundations, I’ve seen it all. The good news? These mistakes can be avoided!
In the spirit of Halloween, I’m sharing 25 things funders do that make nonprofits shiver—and how you can avoid these spooky pitfalls.
1. Ghosting Nonprofits
Disappearing without returning calls or emails. Nonprofits are left in the dark, wondering what went wrong. Let’s create clear communication processes that keep grantees feeling supported.
2. The Dagger-Through-The-Heart Funder
Withholding funds during nonprofit leadership transitions to “see what happens.” I advised a large foundation that was unsure about providing continued funding to a nonprofit undergoing a leadership change. We funded a succession plan for the nonprofit and ensured ongoing support through the transition, allowing the nonprofit to thrive instead of floundering.
3. Technicality Horror Show
Rejecting applications over minor details, like an incorrect font size or missing attachment. Nonprofits shouldn’t lose out over tiny technical errors.
4. The Application Abyss
Submitting a proposal only to be met with silence. Nonprofits deserve acknowledgment and feedback.
5. Secret Criteria
Changing grant criteria halfway through the process. I’ve seen this happen firsthand with a national foundation I advised. After designing and launching a $25M grant initiative, they unexpectedly changed the criteria after proposals were submitted, denying funding to previously qualified applicants. We reworked the process to ensure future transparency and alignment with grantee expectations.
6. The Handcuffed Treat
Imposing strict conditions on how nonprofits must execute projects. Flexibility allows nonprofits to meet local and changing needs.
7. The Shapeshifter
Changing your funding priorities halfway through a project. Nonprofits need stability. Let’s align your goals from the start to avoid last-minute changes.
8. Directing from the Shadows
Sending in consultants to “help,” but instead, they take over decisions. Nonprofits should be empowered, not overrun by outside experts.
9. The Haunted Courtship
Requesting endless meetings with the promise of funding, only to vanish. Nonprofits need commitment, not a never-ending chase. One of my clients initially struggled with this—multiple exploratory meetings with grantees but no follow-through. After working together, we implemented clearer decision timelines and expectations, leading to more efficient and successful partnerships.
10. Tech-Free Terror
Making nonprofits navigate outdated or cumbersome application processes. For example, one foundation trustee refused to allow the foundation to invest in software so that nonprofits could apply for funding online. Why? Because he thought nonprofits should “work hard for their money.”
11. The Never-Ending Gauntlet
Forcing nonprofits to jump through endless hoops to apply. Let’s streamline your process and respect the time of your grantees.
12. One-Year Curse
Insisting on short-term grants for long-term projects. Nonprofits need reliable, long-term support.
13. Magic on Demand
Expecting nonprofits to deliver unrealistic results quickly. Nonprofits need time to make a lasting impact. They cannot conjure magic out of thin air!
14. Strings Attached
Offering funding with unreasonable demands, like replacing staff or expanding prematurely. A foundation I worked with realized they were pushing nonprofits too hard to expand before they were ready. After revising their approach, they started providing more flexible, targeted support, resulting in stronger, more sustainable grantees.
15. The Overhead Ogre
Refusing to fund staff salaries or overhead costs. Nonprofits need operational support to thrive. They cannot light up a jack-o’-lantern without a candle!
16. Micromanagement by Metrics
Forcing nonprofits to track irrelevant data just to satisfy funder demands. Don’t make nonprofits count cobwebs ️ —an exhausting and pointless distraction that takes their focus away from the work that truly matters.
17. Surprise Spook-ins
Dropping by unannounced or demanding impromptu site visits. A donor I advised learned this the hard way. She showed up unannounced at a health services nonprofit in the midst of a crisis response. While her intentions were good, they caused unnecessary stress. Together, we created a structured approach to her visits, allowing her to be more helpful without causing disruption.
18. The Funding Gap Phantom
Leaving nonprofits with gaps in funding by requiring a waiting period before reapplying. Continuous funding keeps nonprofits on track.
19. The Vanishing Pledge
Making public promises of funding, only to later renege. A community foundation CEO once told me her board member pledged $50,000 in public, only to renege after another board member made a larger pledge (she didn’t want to be outdone!). Let’s make sure your promises are reliable.
20. Shifting Sands
Suddenly changing your grantmaking priorities. Let’s maintain a consistent focus to avoid leaving nonprofits scrambling.
21. The Summoning Spell
Expecting nonprofits to drop everything for unscheduled calls or meetings. Respecting their time ensures they stay focused on their mission.
22. Rapid-Fire Changes
Frequent turnover in program officers leads to confusion and inconsistency. Let’s keep things stable for nonprofits.
23. The Mission Morph
Pushing nonprofits to address your latest passion, even if it doesn’t align with their mission. You can’t ask a zombie to suddenly become a werewolf. It’s not exactly their area of expertise!
24. The Forced Coven
Demanding that nonprofits partner with other organizations before applying, without giving them the time or resources to form a meaningful collaboration.
25. The Expanding Nightmare
Increasing demands on nonprofits after funding is granted, without offering additional resources. It’s like asking them to create an elaborate costume when you previously agreed a simple sheet with holes cut out for the eyes would suffice. Let’s ensure expectations are realistic from the outset.
These behaviors can unintentionally terrify nonprofits, leading to stress, confusion, and missed opportunities.
This Halloween, let’s ensure your philanthropy is a treat, not a trick. By creating transparent, flexible, and supportive funding relationships, you’ll empower nonprofits to deliver their best work.
Let’s talk. I only have a few select openings for foundation leaders serious about refining their approach and eliminating these spooky pitfalls. Schedule a call today to ensure your philanthropy lifts up the organizations you support—without any scary surprises!
Secure your spot now—before the ghosts come out!
Happy Halloween!
