When the Grant Doesn’t Go According to Plan
How to Navigate Grant Changes Without Damaging Funder Relationships
Years ago, I ordered flowers for my mother for Easter. I waited all day for her thank-you call. Nothing. By dinner time, I called her.
The flowers never arrived.
The next morning, I called the florist — a small shop near my parents’ home. (Yes, mildly awkward. My brothers knew the owner.)
He didn’t blame the driver. He didn’t offer excuses. He said, plainly:
“I messed up. I was swamped. I put the order in my pocket and forgot.”
Then he gave me two options:
Deliver flowers immediately.
Or deliver an even larger bouquet for Mother’s Day.
No defensiveness. No drama. Just ownership — and solutions.
I never forgot that.
It became my model: when something goes wrong, admit it and redirect toward viable solutions.
Now let’s talk about grants.
The Grant That Went Sideways
Recently, an Executive Director called me in a panic.
They had secured a sizable grant for a youth program delivered through partner agencies. Except… every partner agency backed out.
Now they were holding a restricted grant with no clear way to execute the program as proposed.
The question:
“What do I tell the funder?”
First rule: Always tell the truth.
My mantra?
No surprises unless there’s birthday cake and candles.
If something is shifting, the funder should hear it from you — early.
Yes, This Happens
It’s rare, but it happens.
The community need changes.
Applicants disappear.
A timeline stretches.
A partner walks away.
Cathleen E. Kiritz of The Grantsmanship Center notes that sometimes projects simply evolve beyond the original assumptions.
And here’s what many nonprofit leaders forget:
Foundations don’t want their money back.
They have annual payout requirements — generally 5% of their endowment. Once they make a grant, it counts toward that payout.
Returning funds creates administrative headaches for them.
What they do want? Impact.
Reporting a Shift Is Not Failure
Restricted grants come with terms. You agreed to them. That matters.
But foundations like Mellon and Carnegie openly acknowledge that circumstances change. Most will consider written modification requests — submitted in advance.
What they don’t appreciate is being surprised in the final report.
Telling a funder,
“This isn’t unfolding as expected. Here are three alternative approaches,”
is not failure.
It’s leadership.
It says:
We are paying attention.
We are responsible.
We care about your investment.
The foundation and the nonprofit share the same goal: meaningful impact.
Do What the Florist Did
When I advised the ED, I told them to do exactly what that florist did:
Admit the problem.
Offer solutions.
Invite collaboration.
Ownership builds trust. Solutions preserve relationships.
If You’re Losing Sleep…
If you’re staring at a restricted grant that no longer fits reality…
If a partnership dissolved.
If a timeline slipped.
If you’re drafting a final report and feeling that knot in your stomach.
Don’t wait.
Schedule a complimentary 30-minute discovery call.
We’ll clarify your options, shape the conversation, and position you as a thoughtful partner — not a nonprofit in distress.
Strong funder relationships are built in moments like this.
Honesty. Paired with solutions.
That’s how you keep the grant.
And sleep at night.