Well....

With new resources, there's a temptation to chase new features or market trends, potentially abandoning the core product that initially garnered interest.

Grants often come with specific reporting requirements and milestones, which may not align perfectly with the project's organic development.

Rapid growth and increased pressure can lead to developer burnout, especially in small, passionate teams.

A promising project's success can attract competitors, who may have more resources or established platforms.

This can make it difficult for the original project to maintain its market share.

Not to mention alot of 501c3's are just created to give people with money tax breaks. Always having rounds of new projects to shell money into means continually tax breaks whenever you need one.