The Impact Issue #60: The Funding Landscape Is Shifting—Are You Ready?

Unrestricted funding is no longer just wishful thinking—it’s becoming a reality for more nonprofits. MacKenzie Scott’s massive, no-strings-attached gifts have challenged the status quo, forcing funders to rethink how they support nonprofits. 

This week, we’re covering:

• The latest data on unrestricted giving—and how it’s influencing funders
• How to make the case for unrestricted support in your grant applications
• A nonprofit that transformed its funding strategy with Instrumentl
• Two opportunities that offer flexible funding
• A must-watch webinar on AI’s role in donor engagement

Ready to shift your funding strategy? Welcome to The Impact.

‍

Pitfalls and Pointers

⚠️ Pitfall: Overlooking the Importance of Unrestricted Giving

Many nonprofits focus on securing restricted grants tied to specific projects, assuming that funders won’t support general operating expenses. While project-based funding is valuable, relying too heavily on it can create serious financial and operational challenges.

Here’s why nonprofits struggle when they don’t secure enough unrestricted funding:

• Limited flexibility: Restricted funds often can’t be used for crucial needs like staff salaries, technology, or infrastructure.
• Operational strain: Nonprofits may have to piece together multiple grants to cover overhead expenses, making financial planning difficult.
• Missed opportunities: Without flexible funding, organizations can’t pivot quickly in response to new challenges or opportunities.

💡Pointer: Advocate for Unrestricted Giving to Empower Organizational Growth

Unrestricted support won’t just fall into your lap—you have to make a strong, clear case for it. 

Here’s how to get started: 

• Communicate the value to donors: Don’t just ask for unrestricted support; show why it matters. In your proposals and conversations, explain how flexible funding fuels innovation, stability, and faster responses to community needs.
• Showcase impact stories: Highlight real examples of how unrestricted funding has helped your nonprofit grow, stabilize, or expand services to funders.
• Develop transparent financial practices: Demonstrate responsible stewardship of unrestricted funds through clear reporting and storytelling.
• Find trust-based funders: More foundations are shifting toward general operating support. Identify and engage with funders who align with this approach.

Want more insights on making the case for unrestricted giving?

👉 Check out this expert take from Chris Snyder, PhD, from the Dreyfus School of the Arts!

‍

Featured Nonprofit: Phoenix Children’s Foundation

Phoenix Children’s Foundation is dedicated to funding life-saving pediatric care, research, and medical education for children across the Southwest. But behind the scenes, managing the vast number of grant opportunities required to sustain their work was a major challenge—until they found Instrumentl. 

A Game-Changer for Grant Management

Before using Instrumentl, tracking deadlines, researching funders, and managing proposals felt overwhelming. But with Instrumentl’s all-in-one grant management platform, the foundation has:

✅ Saved time: With Instrumentl’s automated prospecting and tracking tools, they save at least three hours per week, freeing up time to focus on high-impact grant applications.

✅ Centralized their grant pipeline: Instead of juggling multiple spreadsheets, they now have a single source of truth for tracking every grant deadline and funding stage.

✅ Improved funder targeting: Instrumentl’s funder insights and 990 data allow them to quickly assess which grants are the best fit, increasing their chances of securing funding.

“I like that we’re able to clearly see what’s in the pipeline and what’s planned for each year. And then we’re able to move them through the stages as the process goes through.” —Beth Noble, Senior Grant Administrator at Phoenix Children’s Foundation

By streamlining their grant-seeking process, Phoenix Children’s Foundation can focus more on its mission and less on administrative hurdles, ultimately securing more funding to support the children who need it most. 

📖 Want to see how they did it? Read the full story!

‍

Expert Perspectives

🏆 Tiffany Nobles on Boosting Grants Productivity

Tiffany Nobles, owner of T. Nobles Grant Consulting, LLC, is a seasoned grant professional with extensive experience in grant readiness assessments, proposal development, funding research, and post-award reporting. In an Instrumentl webinar, Tiffany shared five time-saving tips to enhance grants productivity.

Here’s her expert advice:

• Leverage Technology for Grant Prospecting: Utilize platforms like Instrumentl to streamline the grant research process, allowing for efficient identification of funding opportunities that align with your organization’s mission.
• Develop a Comprehensive Grants Calendar: Create a detailed grants calendar to keep track of application deadlines, reporting requirements, and other critical dates, ensuring timely submissions and compliance.
• Standardize Proposal Components: Maintain templates for common proposal sections to expedite the writing process and allow for quick customization to meet specific funder requirements.
• Foster Collaborative Relationships: Engage with colleagues and stakeholders to gather necessary information and insights, ensuring proposals are comprehensive and reflect the organization’s capabilities and needs.
• Implement Continuous Improvement Practices: Regularly review and refine your grant processes based on feedback and outcomes to enhance efficiency and success rates over time.

By incorporating these strategies, grant professionals can optimize their workflows, reduce time spent on administrative tasks, and focus more on crafting compelling proposals that resonate with funders.

⏰ Watch the full webinar to dive deeper into these productivity tips!

‍

The Latest Numbers

MacKenzie Scott’s transformational, no-strings-attached giving has changed the landscape of nonprofit funding. A new report from the Center for Effective Philanthropy (CEP) examines just how profound that impact has been.

Key Findings:

• $640 million in flexible funding: Scott’s gifts allowed nonprofits to strengthen operations, invest in staff, and scale their impact in ways traditional grants don’t usually permit.
• Ripple effects: 64% of nonprofits report that Scott’s giving has influenced other funders to consider offering more unrestricted support—but shifts in traditional philanthropy are happening slowly.
• Long-term transformation: Nonprofits that received Scott’s funding report greater financial stability and expanded programmatic reach, positioning them for lasting impact.

What This Means for Grant Professionals:

• A push for more unrestricted funding: Scott’s giving is setting a precedent, but it’s up to nonprofits to advocate for similar trust-based funding from other grantmakers. 
• Shifting power dynamics: Traditional funders are being challenged to rethink application burdens, reporting requirements, and funding structures. Keep an eye out for funders adopting more flexible practices—and build relationships with those leading the shift.

🔍 Read the full report: Breaking the Mold: The Transformative Effect of Mackenzie Scott’s Big Gifts!

‍

Opportunities Spotlight

🌟 Innovative Research to Advance Racial Equity Grant

Who It’s For: US-based nonprofit organizations and research institutions focused on racial equity research.

Next Deadline: May 22, 2025

Grant Amount: $100,000 to $600,000 over 2-3 years

The Details:

• Supports innovative research projects that address systemic racial inequities in education, economic mobility, health, and other sectors.
• Prioritizes studies that explore structural and policy changes to reduce racial disparities and promote long-term solutions.
• Applicants should propose rigorous research methods and demonstrate a commitment to advancing racial equity through actionable findings.

👉 Apply Here!

📚 Believe in Reading Grants

Who It’s For: Nonprofit organizations in the US with programs dedicated to promoting literacy among children and young adults.

Next Deadline: Rolling (applications accepted year-round)

Grant Amount: Up to $3,000

The Details:

• Provides funding for literacy programs that help children learn to read and encourage a love of reading. 
• Eligible applicants must be 501(c)3 nonprofits with a demonstrated commitment to literacy education.
• Preference is given to programs that serve economically disadvantaged youth and show measurable impact. 

👉 Apply Here!

🔍 Explore thousands of other grant opportunities now!

‍

Networking Nook

💻 Webinar: How to Run a Successful Grant Program in Healthcare

May 8, 2025 | 12:00 PM CT

Running a successful grant program in a hospital setting requires more than just strong proposals. From navigating complex departments to aligning funding with institutional priorities, healthcare grant professionals need a strategic, systems-based approach. In this session, you’ll hear from Teri McClanahan, a grant professional at Marshall Medical Center, who manages multi-departmental initiatives, designs fundable programs, and builds internal pathways that lead to grant success.

You’ll walk away knowing how to:

• Identify which projects belong in your grants pipeline (and which don’t)
• Create internal systems for sourcing strong, fundable initiatives
• Find and vet potential funders effectively

Don’t miss out!

✅ Register Now!

💻 Webinar: Donors’ Perspectives on AI & Fundraising

May 8, 2025 | 11:00 AM CT

Discover how donors perceive the use of artificial intelligence in fundraising. This session, hosted by the Lilly Family School of Philanthropy at Indiana University, explores donor expectations, concerns, and how nonprofits can align AI strategies with donor trust and engagement.

Spots are limited!

✅ Register Now!

To check out more recent and upcoming live events, go here.

‍

In Case You Missed It

📑 Article: 15 Best Grant Websites for Nonprofits in 2025

This article breaks down the top platforms where nonprofits can find and apply for grants, including detailed comparisons of the features, pricing, and the types of funders each site includes.

👉 Get the Full Story!

📼 Video: 2025 Fundraising Trends With Sharon Papo

This video delves into the transformative changes expected in the fundraising landscape in 2025. Perfect for nonprofit leaders, fundraising professionals, and board members, Sharon Papo dives into the three game-changing opportunities that you won’t want to miss out on.

👉 Watch the Master Class!

‍

Simplify Your Grant Strategy & Secure More Funding

MacKenzie Scott’s giving has shown the power of unrestricted funding—but most nonprofits still have to navigate complex applications, track multiple deadlines, and make the case for flexible funding.

That’s where Instrumentl comes in.

• Find the right funders—including those open to general operating support and multi-year grants
• Streamline your grant tracking so you never miss a deadline
• Use data-backed insights to strengthen your proposals and advocate for unrestricted funding

Try Instrumentl free for 14 days and start securing the funding your nonprofit truly needs.