How to Avoid Grant Scams: Protecting Your Organization

Grant scams cost organizations millions annually. Here's how to protect yourself.

Red Flags of Grant Scams

You Have to Pay to Apply

Legitimate grants never charge application fees. If someone asks for money to apply, it's a scam.

Watch for:

• "Processing fees"
• "Administrative costs"
• "Guarantee fees"
• Required "training" purchases

You "Won" a Grant You Didn't Apply For

Government agencies and legitimate foundations don't randomly award grants. You must apply through official channels.

Pressure to Act Immediately

Scammers create false urgency. Real grants have published deadlines that give you time to prepare a quality application.

Requests for Personal Information

Never provide:

• Social Security numbers
• Bank account details for "direct deposit"
• Credit card information
• Personal passwords

Unprofessional Communication

Red flags include:

• Poor grammar and spelling
• Generic greetings ("Dear Grant Winner")
• Gmail/Yahoo email addresses instead of official domains
• No phone number or physical address

Common Scam Types

Advance Fee Fraud

"Pay $500 and we'll guarantee your grant approval."

Impersonation Scams

Emails pretending to be from SBA, HHS, or other agencies using slightly altered email domains.

Grant Writing Scams

"Guarantee" success for a large upfront fee, then produce low-quality or plagiarized applications.

Fake Foundations

Organizations with legitimate-sounding names but no real grantmaking history.

How to Verify Legitimacy

For Federal Grants

• All legitimate opportunities are posted on Grants.gov
• Check the agency's official website
• Verify UEI and SAM.gov registration requirements

For Foundations

• Search the IRS Tax Exempt Organization database
• Look up 990 filings on ProPublica Nonprofit Explorer
• Check Foundation Directory Online
• Verify the foundation has a grantmaking history

For Any Opportunity

• Search "[organization name] + scam" or "+ reviews"
• Verify contact information independently
• Trust your instincts - if it sounds too good to be true, it probably is

What to Do If You Encounter a Scam

1. Don't engage - Stop all communication
2. Report to FTC - ftc.gov/complaint
3. Report to state attorney general - Find yours at naag.org
4. If federal impersonation - Report to the actual agency
5. Warn others - Share your experience

Safe Grant Seeking Practices

1. Use official sources - Grants.gov, agency websites, GrantNavigation
2. Never pay to apply - Legitimate grants are free
3. Take your time - Real deadlines give adequate preparation time
4. Verify before providing information - Call official numbers
5. Keep records - Document all communications

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GrantNavigation only lists verified federal, state, and foundation opportunities. Start your search safely.