Geographical Spread
Geographical spread is one of the major reasons for rejection. I understand that close enough is not acceptable, but its the gray areas that usually get me. For example, I live in Wayne County, MI. Often times guidelines will use language like "Detroit Metro Area" or "Tri-County Area". Altough grouped together, there are some cities that would not be considered eligable for the funds even though they technically are within the county limits.
A solution to this common type of rejection is to clarify this with the funder themselves. Looking at past rewards to see the locations works as well.