Fake Grant and Funding Scams Targeting NGOs and Small Businesses
Fake grants target charities, NGOs, community groups and small businesses with offers of funding that require a fee first. How real funders operate and how to spot a fake.
For a charity, NGO, community group or small business, a grant can change everything. Scammers know how much organizations want and need funding, and they exploit it with offers that look official, arrive at the right moment, and need just one payment to unlock. Here is how to tell a fake grant from a real one.
How fake grant scams work
- The offer: an email, social media message or call says your organization has been selected for, or is eligible for, a grant from a government, a foundation, an international body or a large company.
- The legitimacy: logos, reference numbers, award letters, a professional-looking portal, sometimes the names of real officials.
- The catch: a fee for processing, registration, legal documentation, insurance, currency conversion or "compliance".
- The data grab: requests for bank details, registration certificates and IDs of directors or trustees.
Real funders do not charge you to receive a grant. A fee to release, process or register grant money is the clearest sign of a scam.
How real funders operate
| Genuine funder | Fake grant |
|---|---|
| Publishes calls for proposals on its official website | Contacts you out of the blue |
| Has a documented application and review process | "You have been selected" with no application |
| Uses its own official domain for email | Uses free email accounts or lookalike domains |
| Signs a grant agreement setting out conditions and reporting | Rushes you to pay before a deadline |
| Pays into your organization's account; does not ask you to pay first | Demands a fee, often to an individual or by mobile money or crypto |
Illustrative example
gcdf.disbursement@freemail[.]com- An award for a grant you never applied for.
- A fee before disbursement, and a short deadline.
- A free email address rather than an official domain.
How to verify a grant offer
- Find the funder yourself through a search or an official directory, and check that the programme exists on its official website.
- Contact the funder using the details on that website, and ask whether the offer is genuine.
- Check the email domain against the funder's official one.
- Refuse any fee, however it is described.
- Protect documents: do not send staff or trustee IDs until the funder is verified.
- Ask your network: umbrella bodies, peer organizations and sector associations often know about circulating scams.
Protect your organization
- Agree that no one pays any "grant fee" without board or senior approval and independent verification.
- Keep a list of funders you have actually applied to.
- Train staff and volunteers who handle email and social media to recognise these offers.
Our small business security checklist covers wider protections for small teams.
If you have paid or shared documents
Contact your bank straight away, tell anyone whose ID was shared, watch for fraud using your organization's details, and report it. See our reporting guide.
Received a grant offer? Paste it into CyberWatch AI Scan for a free check before you reply.
Fake grants are a form of advance-fee scam. For the full family and how to protect yourself, read our guide to online scams.
Frequently asked questions
Do genuine grant funders charge application fees?
Genuine grant programmes from governments and established foundations generally do not charge fees to apply for or receive a grant. A fee to 'release', 'process' or 'register' a grant is a strong scam signal.
We were contacted about a grant we did not apply for. Is it possible?
Some funders do invite applications, but they do not award money to organizations that have not applied through a documented process, and they do not ask for payment. Verify by contacting the funder through its official website.
What do fake grant scammers want besides fees?
Bank details, registration documents and staff identity documents, which can be used for fraud, and sometimes access to your accounts through fake funding portals.
Sources
- Government Grant Scams, US Federal Trade Commission
- Grant Fraud, Grants.gov
- What To Know About Advance-Fee Loans, US Federal Trade Commission
