The problem
In strategic planning conversations with local health departments (LHDs), one theme consistently rises to the top of every SWOT analysis: decreased funding is the biggest threat.
In response, many teams do what feels natural. They scan for every possible opportunity and apply for all of them. When resources are uncertain, securing as much new funding as possible feels like the obvious solution. But in practice this “apply for everything” mindset creates as many problems as it solves.
Behind every grant application are hidden costs:
- Time spent pursuing low probability opportunities pulls staff away from core priorities.
- Awards with heavy reporting requirements or expectations to launch new services can stretch already limited capacity.
- Funding new programs can feel like a win but often comes with new staff and services that require ongoing funding to sustain.
Over time, chasing funding that is not aligned with strategy can fragment programs rather than strengthen them.
At the same time, leaders must maintain trust. When staff are worried about job stability, saying “no” to a funding opportunity can feel tone deaf or disconnected from frontline realities. Without a clear, shared framework, these decisions can seem subjective or inconsistent.
Why a funding decision framework helps
There is a better way. By establishing a clear decision framework for funding opportunities, LHDs can align their efforts. A simple, transparent set of criteria helps teams focus effort on opportunities where they are truly competitive, avoid taking on funding that creates unsustainable obligations, use limited staff time more effectively, and build shared understanding around why some opportunities are pursued and others are not.
What a decision framework looks like
A funding decision framework defines what an ideal funding opportunity looks like and evaluates each opportunity against that standard. In practice, this often looks like a simple scoring or traffic light matrix that compares opportunities across a set of agreed criteria.
For example:
Build your own framework
The most effective frameworks are grounded in what matters most to your organization. Key questions to consider include:
Strategic Fit & Priorities
- How does this opportunity align with our top strategic priorities? Are we using this grant to advance what we already know matters most, or are we stretching to fit the opportunity?
- What funding gaps are we trying to fill? Which parts of our strategy are currently underfunded or at risk, and does this grant meaningfully address those gaps?
Competitiveness & Positioning
- How competitive are we for this opportunity? Do we have a clear value proposition, relevant experience and differentiators that match what the funder is looking for?
- Do we have the right relationships and partnerships in place? Would this proposal be stronger with partners, and if so, do we have them—or enough time to secure them?
Effort & Opportunity Cost
- What level of effort will this proposal require? How much staff time is needed, how complex is the application, and how much time do we have to prepare?
- Do we have reusable content or would this require writing from scratch? Can we leverage existing proposals, materials or data to reduce effort? If not, would this opportunity build assets we are likely to reuse in the future?
Feasibility & Organisational Readiness
- How prepared are we to deliver if awarded? Do we have the systems, staff capacity and operational readiness to execute successfully?
- Can we meet all compliance and reporting requirements? Are there any contractual terms, reporting expectations or restrictions that could be challenging?
- Does the budget work for us? Will the grant cover true costs, including overhead and administrative support, or create financial strain?
Program Design & Resourcing
- Does this build on existing work or require something new? Will this strengthen current programs, or require us to stand up new services, staff or capabilities?
- If new, is that investment intentional and worthwhile? Does building something new align with where we want to grow?
Sustainability & Risk
- What happens after the grant ends? Is there a realistic path to sustain this work through additional funding or integration into core programs?
- Are there reputational or community risks if the program ends? How would starting—and potentially stopping—this work affect relationships and trust?
A shift worth making
A funding decision framework does not eliminate hard decisions. But it does help create a mindset shift within the organization to help everyone align around the same goals. As your organization creates a decision framework and practices using it, decisions become clearer, more consistent and more aligned with long term impact. If this is something your team is working through, applying these questions to one upcoming opportunity can be a useful way to start building a more intentional approach and shifting mindset toward strategic funding.
At VillageReach, we partner with local health departments working to build stronger, more responsive public health systems. You can learn more about our work in the U.S. here.