How do I know if a grant is legitimate?
Red Flags to Watch For
If a grant requires you to pay an application fee, processing fee, or 'tax' before receiving funds, it is almost certainly a scam. Real grants are free to apply for and do not ask for payment. Be wary of unsolicited emails or calls saying you've won a grant you never applied for. Also, avoid any grant that asks for your bank account number or Social Security number before you have verified the funder.
Another red flag: pressure to act immediately. Legitimate grants have clear deadlines and review processes. If someone says you must pay now to secure your grant, walk away.
- Upfront fee required
- You didn't apply but 'won'
- Requests for bank details early
- High-pressure sales tactics
- No physical address or phone number
How to Verify
Look up the funder's name online. Legitimate grantmakers have a professional website with clear information about their mission, application process, and past grantees. Check if they are registered as a nonprofit or government entity. For U.S. funders, you can search the IRS Tax Exempt Organization Search to see if they are a 501(c)(3). For businesses, check your state's corporation database.
Call the funder directly using a phone number from their official website, not from the email you received. Ask about the grant program. You can also ask local nonprofit leaders or your community foundation if they have heard of the funder. Trust your gut: if it feels too good to be true, it probably is.
Common mistakes
- Paying a fee to 'release' grant funds.
- Believing a grant is real just because the email looks official.
- Not verifying the funder's tax-exempt status or physical address.
