Looking for funding but not sure where to start? You’re in good company.

Whether you’re with a small nonprofit in rural Kentucky or a city government exploring grants for the first time, prospect research—the process of identifying good-fit funders—can feel overwhelming at first. But at Grant Ready Kentucky, we believe in making the grant world feel less like a maze and more like a map. So let’s walk through it together, step by step.

The Grant Prospecting Funnel

When researching good-fit grants, we like to think of the process as a funnel. You’ll begin by sorting through databases of thousands of funders to identify a large group that might fit. Then, you’ll systematically narrow that big group down to about two dozen that are strong fits. As they flow down the funnel, you’ll investigate each deeper until you’ve narrowed it down to a handful of great-fit grants that you have a strong chance of winning. This process of winnowing down the field to the best fitting grants with the greatest odds of success, saves you the time and effort of applying to dozens and dozens of grants with little return.

This first article covers how to identify your initial list of 100 or so possible fits.

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Start With the Basics: What Do You Need Funding For?

Before you ever log in to a database or Google “grants for nonprofits in Kentucky,” you need to know what you’re actually looking for. Funders want to invest in clearly defined projects with measurable results—and the clearer you are, the better your chances of finding a match.

Here are the essential questions to answer:

• What project, program, or need are you trying to fund?
  
  
• Who benefits, and how?
  
  
• Is this a one-time project or ongoing work?
  
  
• What are your goals and outcomes?
  
  
• What’s your total budget?
  
  
• How much do you need from a grant?
  
  
• Do you need matching funds?
  
  

Taking time to clarify these points will save you hours down the road—and help you search smarter, not harder.

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Understand Grant Categories: What Funders Typically Support

Grants generally fall into a few broad categories. Knowing which one your project fits into helps you target the right funders and avoid applying for grants that aren’t a good fit. Here’s a breakdown:

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1. Program or Project Grants

These fund specific services or activities with clear goals and timelines. Think youth mentorship programs, food security initiatives, mental health outreach, or rural internet expansion.

Example: A $50,000 grant to run a summer literacy camp for elementary students in Eastern Kentucky.

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2. General Operating Support (Unrestricted Funding)

This is the nonprofit unicorn—funders give you money to use however you need. Rare, but valuable.

Example: A $25,000 grant to help with staffing, rent, or general expenses for a community health center.

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3. Capital Grants

These help fund buildings, renovations, equipment, or major purchases.

Example: A $100,000 grant to purchase a refrigerated delivery truck for a mobile food pantry.

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4. Capacity-Building Grants

Designed to strengthen your organization long-term—think strategic planning, staff development, technology upgrades, or communications strategy.

Example: A $15,000 grant to create a marketing and branding plan for a grassroots domestic violence prevention nonprofit.

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5. Technical Assistance and Planning Grants

These support early-stage work like needs assessments, feasibility studies, or grant readiness coaching.

Example: A $10,000 grant to conduct a broadband needs assessment in your county before launching an infrastructure project.

When you understand what kind of funding your project requires, it’s easier to zero in on the funders most likely to say yes.

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Use the Right Tools

The internet is full of dead-end “grant lists.” If you want real data on who funds what, tools like Candid’s Foundation Directory Online (FDO) are your best bet. Grant Ready Kentucky is partial to FDO because it is available for free in many public libraries, and they offer a free year to their “essential” version through their “Go for the Gold” promotion. The FDO is a powerful database with over 240,000 grantmaker profiles and records of more than 18 million past grants. Candid also provides a lot of free resources to help guide your grant searches, and some libraries even offer free training on the FDO.

Step-by-step guide to free FDO access in Kentucky
Apply for one free year of Foundation Directory Essential

For Federal Grants, your go-to search tool is Grants.gov, the central platform where all federal agencies post their discretionary grant opportunities, and where applications are submitted.

Unlocking Federal Grants: How to Register for Grants.gov

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The Search

Most grant databases work like search engines. The results you get depend heavily on the keywords you use—and how specific or strategic they are.

Here’s how to do it right:

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Step 1: Identify Your Focus Areas

List the core themes of your project. Use these guiding questions:

• What issue are you addressing?
  
  
• Who is your target population?
  
  
• Where is your project located?
  
  
• What type of support do you need (program, capital, general ops)?
  
  

Let’s say you’re running a job readiness program for women leaving incarceration in Pike County. Some keywords might include:

• “Reentry”
  
  
• “Workforce development”
  
  
• “Women’s services”
  
  
• “Appalachia”
  
  
• “Justice-involved populations”
  
  

Step 2: Use Thesaurus Thinking

Funders might use different words for the same idea. Try variations like:

• “Job training” → “workforce readiness,” “skills development,” “employment access”
  
  
• “Children” → “youth,” “young people,” “school-age kids”
  
  

Step 3: Mix and Match

Try combining keywords to narrow your focus:

• “Rural broadband infrastructure Kentucky”
  
  
• “Early childhood mental health Appalachia”
  
  
• “Food security grant West Kentucky”

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Step 4: Filter Your Results

Most databases can be filtered by geography, program area, match requirements, and more. Don’t forget to use them to narrow your search.

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Where Else to Look: Local and State Resources

Not every grantmaker is in a national database. Local and state-level tools can help you find:

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Kentucky-Based Funders:

• Community Foundations (e.g., Blue Grass Community Foundation, Community Foundation of West Kentucky)
  
  
• Health-focused foundations (e.g., Foundation for a Healthy Kentucky)
  
  
• Donor-advised funds (DAFs) held at local foundations
  
  

We recently identified this resource: Kentucky Attorney General’s Charitable Giving Page 

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Look at Who Funded Similar Projects

One of the best ways to build a prospect list? See who has already funded projects like yours. Here's how:

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1. Search in Foundation Directory Online

Once you’re in FDO, use the “Who’s Funding What” tool to see grants by topic or geography.

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2. Review Annual Reports and Donor Lists

Check the websites or annual reports of nonprofits doing similar work in your area. Look for sections like “Our Supporters,” “Funders,” or “Annual Giving Partners.”

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3. Use IRS 990s

Tools like ProPublica’s Nonprofit Explorer let you view IRS 990 forms for free. Search for a similar nonprofit, then go to Schedule B (if public) or Schedule I to see who gave them grants and how much.

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4. Google Grant Announcements

Use search terms like:

• “grant awarded to [type of program] in Kentucky”
• “[county name] grant recipients 2023”

Example: If you find a Louisville nonprofit that got a grant for youth homelessness prevention, note the funder and see if they fund in your region too.

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Top 3 Prospecting Mistakes to Avoid

Jumping Into Searches Without a Clear Funding Need 

Many grant seekers start with “What’s available?” instead of “What do we need funding for?” Without a clear project scope, budget, or defined outcomes, you risk chasing grants that don’t actually align—or worse, bending your project to fit the grant.

Quick Fix: Define your project, goals, and audience before opening a grant database.

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Equating a Long List of Grants With a Good List

Quantity doesn’t equal quality. Chasing every grant you find (especially those outside your focus or region) wastes time and lowers your odds of success.

Quick Fix: Use a qualification checklist to narrow your list to 10–30 funders that truly align with your mission and geography.

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Ignoring Relationship-Building

Sending cold applications without engaging funders (when allowed) often leads to rejection. Many funders want to see some connection—even a short email or webinar attendance makes a difference.

Quick Fix: Prioritize cultivation. A warm lead is often better than a cold submission.

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Next Steps

Once you have created your initial list of possible grants, it’s time to start narrowing it down. We cover that process in part II of this series.