How to Find Foundations That Fund First-Time Grantees

You spent 40 hours researching a foundation, writing a letter of inquiry, and tailoring your proposal. You never heard back. Here's why: that foundation has funded the same 15 organizations for the last decade. Your application never had a chance.

This is the single biggest time sink in grant writing — chasing foundations that look like a fit on paper but have zero history of funding new organizations. We analyzed 10.7 million grants across 177,408 foundations, and the data is stark: the majority of private foundations give to the same grantees year after year. Your LOI is competing against relationships that are decades old.

But some foundations actively seek new grantees. The data shows which ones. You just need to know where to look.

Why Most Foundations Stick to Repeat Grantees

It's not malicious—it's practical:

• Lower risk — They already know the org delivers results
• Less work — No need to vet a new organization
• Board relationships — Board members often have personal ties to grantees
• Mission creep prevention — Easier to stay focused with familiar partners

This isn't a conspiracy. It's just how small foundations (which most are) operate with limited staff.

The Math That Reveals Open Foundations

Here's the trick: compare total grants to unique grantees over multiple years.

Signs a Foundation Is Open to New Grantees

• They have an open application process — Sounds obvious, but many don't
• Their 990 shows diverse grantees — New names appearing each year
• They fund smaller amounts to more orgs — $10K to 50 orgs vs. $500K to 1 org
• They have program staff — Not just a family with a checkbook
• They've funded orgs like yours recently — Same size, same cause area, same geography

Red Flags: Foundations to Skip

• "Does not accept unsolicited proposals" — They mean it
• Same 5-10 grantees for years — You're not breaking in
• Only funds through board relationships — Unless you know someone, move on
• Gives one massive grant per year — That slot is already filled

The Shortcut: Openness Scores

Manually analyzing 990s for grant diversity takes hours per foundation. That's why we built the Openness Score.