Increased competition, lower success rates

Across major federal agencies, proposal success rates are tightening. In the U.S., agencies such as the NIH and NSF are receiving record numbers of submissions. In Canada, the Tri-Council agencies (CIHR, NSERC, and SSHRC) face similar pressures. Even technically strong proposals are being declined more frequently. Reviewers are placing greater weight on clarity, alignment, and feasibility, not just on the novelty of an idea.

The shift toward impact and implementation

Funders are prioritizing projects that demonstrate real-world results. It is no longer sufficient to present a compelling idea for now applicants must show how outcomes will be implemented, measured, and sustained over time. In both countries, proposals that clearly connect research or programs to community benefit, policy relevance, or scalable outcomes are gaining a distinct competitive advantage.

Growth of non-federal funding sources

As federal funding grows more competitive, foundations, corporate giving programs, and regional funders are playing a larger role. In Canada, provincial funding and foundation support are becoming increasingly important complements to federal grants. In the U.S., private foundations are expanding initiatives across education, health, and community development. Organizations that diversify their funding portfolios, rather than relying on a single source, are better positioned to weather tightening cycles.

Responsible use of AI in proposal development

Artificial intelligence is rapidly entering the grant development process, but funders are watching carefully. Many agencies now explicitly discourage or outright reject proposals that appear AI-generated. The expectation is that applicants use AI responsibly: for research, planning, and refinement, while preserving authentic, human-driven narratives. This approach is consistent across both U.S. and Canadian funders.

Looking ahead

Success in grant seeking will depend less on volume and more on strategy. Organizations that strengthen proposal clarity, diversify their funding sources, and align closely with funder priorities will be best positioned to compete and win in this evolving environment.

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