Too small to get funding?

When an organization is very small it is almost impossible to get funding.

For example we have enough funds to have staff, but the minimum amount of staff we require. As we have the minimum staff, they don't have any spare time for writing detailed funding proposals, which of course all funders want.

Funders also require accountability; which means reports. As we have minimum staff they don't have time for extra report writing. So how do we get funding? Or do we just stay very small and not get any funding?

This has to be faced by all small non-government organizations at some stage, and there is no obvious answer to how each of us break the 'catch 22' situation.