In the world of grant seeking, myths have a way of taking root. Misconceptions often come from a mix of fear, misinformation, or stories passed between nonprofit organizations trying to make sense of why funding can feel hard to reach. This blog is in response to some common concerns we have heard from nonprofits over the last few months. Their concerns are about if there is funding available for the work tied to their values—whether religious or social. They have heard that they shouldn’t even try.
But the truth is—funding has always been competitive, and it always will be. What hasn’t changed, and never will, is this: the organizations that seek funding opportunities are the ones that receive it. Dollars left unpursued are dollars left behind.
At Millionaire Grant Lady, we’ve worked on over 100 grant projects for nonprofits of every shape and size across the United States, and one thing remains clear: opportunity belongs to the organizations that show up.
Below are some of the most common myths that hold nonprofits back. Let’s debunk the top five grant writing myths and reveal the reality behind them.
Table of Contents:
Myth 1: Faith-based organizations can’t pursue federal or government funding.
Myth 2: Funders won’t be interested in us because of our faith-based work or our values.
Myth 3: We got denied once (or even multiple times), so no one will ever fund us for this.
Myth 4: We focus on serving the underserved and so we shouldn’t pursue government funding.
Myth 5: We should keep doing our work—and talking about it—the same way we always have.
Looking for Best Practices? Keep Showing Up
Ready to Position Your Organization for Funding Success?
Grant Myth 1: Faith-based nonprofits can’t pursue federal or government grant funding.
This belief persists, but it’s not accurate. Faith-based organizations have been eligible for government grants for decades. The key is ensuring your proposal focuses on community impact rather than religious instruction or worship activities. Federal and state agencies regularly fund programs led by faith-based groups that feed the hungry, shelter families, or support education and workforce development. The door has always been open—organizations just have to walk through it.
If you’re curious about the differences between funding from foundations versus funding from government sources, take a look at our blog post on Foundation Grants vs. Government Grants.
For a broader overview of how the federal funding process works—and what makes a proposal eligible—you can explore the Grants.gov Learning Center, which offers official guidance on navigating the federal grant system.
Grant Myth 2: Funders won’t be interested in us because of our faith-based work or our values.
Funders—whether public or private—are primarily motivated by impact and outcomes. They care about the problem you’re solving and the measurable difference you make. Your values can inform your mission and approach, but they don’t disqualify you. Many funders appreciate that faith-based or values-driven organizations are deeply embedded in their communities and can mobilize volunteers, trust, and resources in ways others cannot. What matters most is alignment with the grant’s purpose and clear results.
The MGL team knows how to highlight that alignment. Alex, our founder, used to run grant competitions herself, which means we understand exactly what funders look for—and how to make your application stand out from the stack.
Grant Myth 3: We got denied once (or even multiple times), so no one will ever fund us for this.
Rejection isn’t the end—it’s feedback. Even the most successful nonprofits face denials. A decline doesn’t mean your mission is unworthy. Each application teaches you more about the landscape, your positioning, and your strengths. Many organizations that persist eventually receive funding for the very same programs that were once turned down. The key is to keep applying and keep improving.
Another thing to consider is that maybe that denial wasn’t about your organization. Maybe the funder ran out of money because of prior commitments. Maybe they never give grants to first time applicants. Maybe the person reading it had a terrible day the day they read your proposal. Maybe it got lost on their desk. The “maybes” are endless. That’s why you need to keep applying. Many organizations have success on future applications to the same funder just because the funder recognized them finally.
Our clients often tell us that what makes the difference isn’t luck—it’s precision. We nail your mission every time, capturing what makes your organization unique so that reviewers immediately see your value. One client even told us she cried when she read her proposal because it felt so spot-on.
If you want to dive deeper into how to prepare your organization for grant funding—especially before submitting your next application—check out our blog post on Nonprofit Grant Readiness.
Grant Myth 4: We focus on serving the underserved and so we shouldn’t pursue government funding.
This is exactly why you should pursue it. Even as funders shift emphasis for who and what they support, government agencies and private funders remain focused on impact and outcomes. Programs serving historically marginalized communities often align with national and local funding goals around health, education, and economic opportunity. The key is to phrase it around improving community outcomes and potentially to broaden eligibility for your services if the specific opportunity requires it. Your work is not a barrier—it’s a bridge to the kind of outcomes funders are looking to support. By focusing on your impact, you can emphasize your alignment with funder priorities.
Grant Myth 5: We should keep doing our work—and writing about it—the same way we always have.
The world has changed. Needs have evolved, priorities have shifted, and so have funders’ strategies. What resonated years ago may no longer stand out in today’s grant landscape. This doesn’t mean abandoning your mission—it means refreshing your language, data, and approach. Successful organizations continuously evolve how they communicate impact, demonstrate outcomes, and adapt to new opportunities. Staying flexible doesn’t dilute your message; it keeps it alive and relevant.
If you’d like to explore a fun metaphor that links sports mindset and persistence to grant success, check out our blog post How Baseball Explains Grant Success.
Looking for Best Practices? Keep Showing Up
Grant seeking isn’t about luck—it’s about consistency. Every application is a chance to refine your message, expand your network, and move one step closer to the “yes” that funds your mission. The landscape may shift, but opportunity is always out there. The organizations that pursue it are the ones that grow.
Ready to Position Your Organization for Funding Success?
Let’s make sure you’re applying with confidence, strategy, and clarity.
👉 Book a call with the Millionaire Grant Lady team to get expert guidance on how to find, frame, and fund your next opportunity.
