How to build a relationship with an institutional funder: A guide for nonprofit professionals
You found the perfect funder. Your mission aligns. Your team is ready. But… you don’t know anyone there. 😬
Sound familiar? You're not alone. It's one of the most common dilemmas nonprofit and NGO leaders face. But here's the good news: strong donor relationships don’t have to start with insider connections. You can build donor relationships with institutional funders even if you start from scratch.
Recently, I had the opportunity to dive deep into this very topic on the Tony Martignetti Nonprofit Radio podcast. Here’s a strategic breakdown of what we covered and how you can turn cold prospects into long-term funding partners.
Step 1: Know before you go
Before you reach out, be sure you’ve done your homework. A strong nonprofit fundraising strategy begins with understanding where your mission aligns with the funder’s priorities.
Check for alignment: Look at thematic, geographic, organizational criteria, and more. Does the funder support your program area, location, and type of nonprofit? (Grab my full donor alignment checklist here.)
Understand their language: Terms like "scalable" or "innovative" may mean different things to different foundations. Look at past grants and publications to understand their interpretations.
Use Form 990s: Especially for family foundations, IRS Form 990s offer insight into their giving patterns, average grant size, and past grantees.
By approaching funders with this foundational knowledge, you’ll demonstrate credibility and reduce friction in your outreach. Plus, you’ll save yourself boatloads of time no longer going after funders that aren’t a good fit for your organization. This is a key piece in your nonprofit fundraising strategy.
Also, review their board, advisory members, and leadership team. Sometimes an indirect connection through a mutual LinkedIn contact can serve as a helpful entry point— even if it’s just for advice. (Though a funder who listened to the podcast recommended reaching out to board members only very selectively. It can feel to a program officer like you are trying to go over their head.)
Step 2: First contact without a contact
You’ve done your homework. Now it’s time to make contact—with care. Here's how to do it without feeling awkward or pushy.
Connect on LinkedIn: Send a personalized connection request. Mention shared interests, recent announcements, or relevant programs. Show that you’re engaged and sincere. Or
Email with purpose: Your cold outreach email should pique interest, prove you’ve done your homework, and clearly request a short meeting or follow-up.
Pro Tip: Keep the focus on them, not just on your organization. Highlight how your work can advance their mission and values.
Use a structure in your email: introduction, what impressed you about their work, your organization’s focus, alignment, and a request for a 30-minute call. Short and sweet wins the day— aim for your email to be less than 15 lines. Remember, you’re not pitching the whole project, just sharing enough for them to be intrigued to learn more.
You could attach one brief asset—a PDF one-pager or link to a short video—that paints a picture of your work. But only do this if your asset is really great.
If they don't respond, don’t give up. A single email often isn’t enough. I love the phrase professional persistence— follow up every couple weeks or months with program wins, testimonies, or articles that are relevant to your work or region. Track your communications in a spreadsheet (want to be really pro? Use a CRM) so you know who you have sent what to, and when you next need to follow up with each person. Free chrome extensions like Streak let you see if the recipient even opened your email.
Step 3: The intro call
If you land a 30-minute call, congrats! That’s a big win.
Be personable. This is a human conversation, not a transaction. Donor relationships thrive on connection, not just alignment. So first, connect as human beings.
Seek to understand before you seek to be understood. Ask how they got into this work, what their current priorities and goals are, and where they are struggling to meet their goals.
Tailor your pitch: Use what you learn to frame your organization’s work in a way that speaks directly to their interests.
Prepare for this meeting by reading their website, recent grantee news, and any public statements or interviews. Then, be ready to answer common questions: What change are you driving? What makes your approach unique? What big opportunities do you have right now?
Tempting as it is— don’t ask them for money on this first call. The first call is about building trust and uncovering alignment. Getting a follow-on meeting is the real win. So focus on getting clarity, building rapport and defining a next step together.
Step 4: Don’t ghost them, you are just getting started
So the intro call went well— amazing. But don’t move onto your next funder just yet… Donor engagement doesn’t stop after the call. It’s where real relationship-building begins.
Send a thank you email: Send this within 24 hours and send any other promised information within 3 days or within the promised time.
Send thoughtful updates: If there isn’t an immediate next step, then stay in touch by highlighting milestones, testimonials, and relevant organizational news.
Be honest about challenges: Funders appreciate transparency. If you are in discussions about a grant and something not-good happens at your organization, share this news directly— trust is built in those tough moments.
Sending consistent, low-pressure updates keeps you top-of-mind. A quick paragraph every month or two can do wonders for long-term donor engagement.
You can also include links to recent media mentions, an op-ed your team wrote, or your latest impact report. These aren’t “asks”—they are invitations to stay connected and explore potential synergies.
Step 5: Keep showing up like the awesome partner you are
I know that once you have submitted a proposal, you will be feeling all the feels. So while you wait:
Send a well-timed update: Maybe you launched a new initiative, reached a major milestone, or were featured in the media.
Avoid inbox overload: One thoughtful touchpoint is enough unless more is requested.
And if something major happens—positive or negative—be transparent. Donor relationships thrive on clear communication and mutual respect. So reach out, frame it constructively and emphasize how you’re managing the situation.
Step 6: Win or lose, this is what sets you apart
If you get funded:
Send a personal thank-you: Express appreciation and excitement.
Maintain engagement beyond reporting: Funders are investing in your mission. Treat them like partners, not just check-writers.
Set a calendar reminder for yourself to send updates quarterly. Include both the required reporting materials and “extra touches”—photos, video clips, or informal stories that keep the funder engaged emotionally.
If you don’t get funded:
Request feedback: Ask what could be improved. (Grab my free done-for-you rejected application email reply you can use to ask grant donors for this feedback)
Keep in touch: Maintain the relationship, share updates, and reapply when ready.
Beyond the grant: Sustaining donor relationships
Securing funding is just the beginning. Retaining it is where your nonprofit fundraising strategy truly shines. So make sure that you are proactively sharing wins, impact stories and lessons learned– this could be a single paragraph email your program team drafts once a month for you to send to the funder. Invite the donor for a site visit or carve out time to connect at a conference you may both be at.
Also, ask funders about their priorities. What would a successful year look like for them? What trends are they seeing in the field? These insights not only help deepen the relationship but may inform your own strategy. And on your end, share not just about the project they are funding but about what you are seeing up ahead and additional plans you have.
Ultimately, you are building a long term partnership, not just a transaction.
Key takeaways for your nonprofit fundraising strategy
Donor engagement is a long game: Think relationship, not transaction.
Professional persistence works: Follow up multiple times, strategically and respectfully.
Be a resource, not just a requester: You have a unique ear to the ground. Share insights, successes, and even challenges.
Customize your communications: Speak their language, address their goals, and honor their time.
Invest in relationship management: Don’t let communication lapse between grant cycles.
Institutional funding can feel daunting. But with the right mindset and systems, building donor relationships becomes a replicable and rewarding part of your nonprofit fundraising strategy.
Want to get all the details? Listen to the full podcast episode here for more examples and tips.
And if you’re ready to make donor relationships feel less intimidating and more human, follow us on LinkedIn and subscribe to our newsletter. Let’s build funding partnerships that feel good and do good.
