Don't Let Grant Money Become a Burden: Why Smart Nonprofits Say No

ARTICLE | January 02, 2026

Picture this: Your nonprofit receives news that a grant proposal has been approved. The celebration begins, champagne flows, and everyone congratulates the team on securing much-needed funding. But what if that "good news" could actually harm your organization?

While grant funding can be transformative for nonprofits, accepting the wrong grant can create unexpected administrative nightmares, strain your resources, and even jeopardize your tax-exempt status. Smart nonprofit leaders understand that not every funding opportunity deserves a "yes" – especially when the hidden costs outweigh the benefits.

From extensive reporting requirements that overwhelm small staff teams to programs that drift from your core mission, grants can sometimes do more harm than good. The key is knowing how to evaluate opportunities before you commit your organization's valuable time and resources.

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