The Cost of Decision Making in Grant Writing: Maximizing vs. Satisficing
Decision making is at the heart of grant writing and grant supportive services. Whether you are a nonprofit leader, grant writer, or consultant, the process of choosing which grant to pursue and how to allocate resources can significantly impact both OUTCOMES and COSTS. Drawing on inspiration from The Flourishing Center’s framework on maximizing versus satisficing decision making, MC2 Collaborative explores how these approaches can shape success on all levels and varying capacities.
Understanding Maximizing vs. Satisficing
MAXIMIZERS
Maximizers aim to make the “BEST” decision by thoroughly evaluating all options. In grant writing, this might involve EXHAUSTIVE RESEARCH into funding opportunities, aligning them with organizational goals, and crafting highly competitive proposals.
SATIFISFICERS
Satisficers on the other hand, seek a “good enough” solution. They focus on meeting essential criteria rather than pursuing perfection, which can save TIME and RESOURCES.
BOTH APPROACHES HAVE MERIT
There are financial costs to grant writing, and grant writing involves DIRECT and INDIRECT COSTS that organizations must weigh carefully: (evaluating grant writer fees, administrative costs and opportunity costs)
MAXIMIZING Decisions in Grant Writing
Maximizing decisions often lead to higher quality decisions but come at a cost:
PROS:
Increased chances of winning competitive grants
Better alignment with long-term strategic goals
CONS:
Higher financial investment
Risk of “analysis paralysis,” delaying action
ORGANIZATIONS THAT ADOPT a maximizing approach should use tools like decision making matrices to streamline evaluation processes and reduce subjectivity. [Ask MC2 for more tools.]
SATISFICING Decisions: A Cost-Effective Alternative
Satisficing reduces decision-making time and resource expenditure:
PROS:
Faster turnaround times for applications
Lower upfront costs
CONS:
May miss out on larger or more competitive funding
May miss important score elevating opportunities with funder
This approach can work well for smaller organizations or when pursuing low-stakes grants that align with immediate needs.
PRACTICAL TIPS for BALANCING COSTS and OUTCOMES
Use Decision Matrices
Plan Strategically
Involve Stakeholders Early
Leverage Technology
The costs of decision-making in grant writing is not just financial – it also involves TIME, ENERGY, and OPPORTUNITY TRADE-OFFs. By understanding when to maximize and when to satisfice, organizations can optimize their grant strategies for both EFFICIENCY and IMPACT. Whether you are aiming for perfection or practicality, the key is a clear process supported by strategic planning and the right tools.
Want to know if you are a MAXIMIZER or SATISFICER?
Ask MC2 Collaborative for the Maximizer vs. Satisficers quiz.
