EU grants and nonprofits: 6 common misconceptions - unpacked as opportunities

When it comes to funding, many nonprofit organisations across Europe – such as in the social and environmental sectors – assume that EU grants are out of reach. The application process seems complex, the competition intimidating and the rules unclear.

At the same time, every year the European Union invests billions of euros into projects that strengthen communities, tackle climate change and fight inequality. These are causes at the very heart of what many nonprofits do.

So why do so many organisations hold back? Often, it comes down to misconceptions. Let’s look at six of the most common myths about EU funding, and how understanding the facts can open new doors.

Table of Contents

EU grants and nonprofits: 6 common misconceptions unpacked as opportunities

(1) “EU grants are only for big organisations - our projects are too small to interest the EU”

Many nonprofits assume that EU grants are reserved for universities, big municipalities or multinational consortia. Small community groups or grassroots initiatives often feel their projects aren’t “big enough” or “important enough” to attract EU funding.

But this is not true. You don’t need a million-euro budget to access EU funding. The EU actively seeks to support smaller scale initiatives, too, that can demonstrate local impact, innovation, and the potential to be transferred or scaled up. Many programmes are particularly accessible for small or grassroots organisations. For example:

  • Erasmus+ funds small-scale partnerships, peer-learning exchanges, and capacity-building projects, some starting with just two organisations and project budgets as low as 30,000 €.
  • CERV (Citizens, Equality, Rights and Values Programme) supports NGOs working on equality, rights, inclusion and civic participation, for example small women’s associations or community centres promoting democratic engagement.
  • LEADER (an initiative under the European Agricultural Fund for Rural Development) empowers rural communities to design and implement their own strategies. Local action groups, often made up of municipalities, farmers and civil society organisations, can secure funding for projects that revitalise villages, support local products or promote rural tourism.

In short, EU programmes are not reserved for big organisations, they also target small nonprofits and local partnerships to bring fresh ideas to life. One caveat, though: EU funding for nonprofits is generally aimed at organisations that have already been operating for a few years. For a brand-new nonprofit, winning an EU grant is difficult. Apart from a few exceptions such as small local initiatives like LEADER, most Calls expect applicant organisations to show a minimum level of organisational stability (in terms of know-how and implementation capacity) and financial resources.

What the expert evaluators who score your proposal are looking for is not size, but relevance. Does your project respond to the Call’s or funding programme’s priorities? Does it have a clear structure, achievable outcomes and potential to inspire others? If so, even a small organisation with a modest budget can win EU funding – especially when the results can later be scaled up, replicated, or adapted elsewhere.

(2) “The application process is too complicated”

Yes, EU applications require detail and structure. But ‘complicated’ doesn’t mean ‘impossible’. In fact, the application forms are designed to break down your project rationale step by step: What is your project about? What results do you expect? Who is involved? Which activities will you carry out?

For a nonprofit, this exercise can be valuable beyond the grant itself. Preparing an application demands you to clarify your objectives, strengthen your partnerships and clearly define the change you want to achieve. Even if you don’t win the grant on your first attempt, you’ll walk away with a stronger project concept, a clearer organisational strategy and transferable skills you can apply across all your fundraising.

(3) “We don’t have international partners, so we can’t apply”

It’s true that many EU programmes require partnerships across countries. But not all do. Some programmes also support projects led by a single organisation within one member state. For example, the LIFE programme funds environmental pilot projects run by individual organisations, while EU Structural Funds (such as the European Social Fund or European Regional Development Fund) can finance local initiatives for skills, social inclusion or community development without the need for international partners.

Even when international partnerships are needed, building them is not as daunting as it sounds. Partner search platforms, brokerage events organised by the European Commission or National Contact Points once a Call for Proposal has opened, or your own partner networks or thematic NGO coalitions can help you connect with potential allies.

Partnerships are an opportunity, not a barrier. They allow you to amplify your impact and learn from others facing similar challenges.

(4) “The competition is too high, so we don’t stand a chance”

It’s true that EU grants are competitive, but that’s also what makes them prestigious. However, what matters most for the evaluators is a project’s relevance, clarity, feasibility and potential impact.

Nonprofits beyond the big players with a well-designed project that clearly addresses the Call’s priorities can score just as highly as a larger institution – as long as they can demonstrate in their application that they have the know-how and capacity needed to implement the project effectively.

And remember: competition exists for every funding source. National and local grants also have limited budgets. The key is to improve your project design and application skills, which increases your chances everywhere.

(5) “EU funding is just about the money”

Winning a grant gives you the resources to bring your project to life. But EU funding is about much more than just than the funding itself – for example, it also brings:

  • Visibility: Being part of an EU-funded project boosts your organisation’s credibility.
  • Networks: You gain access to European-level partnerships and expertise.
  • Capacity building: The process itself strengthens your planning, reporting and project management.
  • Policy influence: Successful projects often feed into EU-level discussions, giving nonprofits a bigger voice.

For nonprofits, such as social and environmental organisations, these benefits can be as valuable as the grant itself. They can open doors to new collaborations, donors, and long-term opportunities.

EU funding is a growth opportunity, not just a financial transaction.

(6) “It’s not worth the effort”

It’s true that preparing an EU grant application does take effort. But the potential returns are significant, enabling organisations to scale initiatives, test new ideas or reach communities they couldn’t otherwise.

Equally importantly is a mindset shift: instead of thinking small, your organisation starts planning for bigger, more strategic impact. For social nonprofits, this might mean addressing systemic barriers to inclusion. For environmental groups, it might mean piloting solutions that could be scaled or replicated across Europe.

The effort is an investment. Even if your first proposal isn’t funded, you’ll be better prepared for the next Call, and your organisation will benefit from the clarity gained along the way.

Shifting perspectives and unlocking opportunities

The misconceptions above often discourage exactly the types of organisations the EU most aims to reach. Social and environmental nonprofits are at the heart of Europe’s response to today’s challenges, and EU funding exists to strengthen their work and their impact.

What really matters is a solid project idea, openness to learning, and the courage to take the first step.

Are you planning to submit an EU grant application and need support? Check out my EU grant writing offers.

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Astrid Mechel - EU Funding Consulting

Author: Astrid Mechel

https://eufundingconsulting.eu

Hello, I am Astrid Mechel and I work (for the most part) with small and medium sized organisations who aim to access EU funding. It is my goal to help discovering suitable EU project funding possibilities and to provide support to submit a high-quality grant application. My main thematic focus is on grants for research and innovation, environmental sustainability as well as on social inclusion and participation.

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