Grant scams are getting smarter — and they’re targeting the exact people who can least afford wasted time and money: nonprofits chasing funding.
Let’s start with the rule that eliminates most of these scams instantly:
You should never send money to someone in the hopes of getting a grant.
Not for a “processing fee.” Not for “delivery.” Not for “activation.” Not for “tax clearance.” Not in gift cards. Not in crypto. Not ever.
If that sounds dramatic, it’s because the scam is predictable. Government agencies and consumer-protection orgs warn about the same pattern:
The FTC says scammers will ask for money or bank info and may demand payment via gift cards, wire transfer, or cryptocurrency — that’s always a scam:
Grants.gov maintains scam/fraud alerts and explicitly warns that some scammers pose as government staff and ask for fees:
HHS OIGx warns that HHS will never ask you to pay to receive a grant(including “processing” or “delivery” fees).
For individuals and teams looking to secure more funding with less effort. Streamline your grant-writing process, stay organized, and achieve better results with proven templates and AI-driven support.
Grant scams don’t just prey on “naive” people. They prey on systems:
The scammer’s playbook is simple:
When you understand the pattern, you stop reacting and start verifying.
This is the classic. You get a message saying you (or your nonprofit) has been selected for $5,000, $25,000, or $250,000… and you just need to “confirm details” and pay a fee to release funds.
Reality check: If you didn’t apply, you didn’t win.
Red flags
Useful reference:
Scammers sell “grant lists,” “priority access,” or “unlock codes” for government funding.
The FTC warns people not to pay upfront fees or for access to grants and describes how these scams lead into requests for bank info and payment via gift cards/wires/crypto:
Translation: If you’re paying for “access,” you’re often paying for a funnel into fraud.
The easiest way to scam someone is to look official:
A practical tip from the FTC: check for a .gov domain if someone claims they’re with a federal agency, and watch out for lookalikes.
If you pursue federal grants, scammers may target your SAM/Grants.gov registrations with “renew now” threats.
A simple anchor point: some government toolkits state there is no fee to register for required systems like Grants.gov and SAM.gov (though third-party help services may charge for help, but that’s different from an official registration fee).
Red flags
This is the new front door for scams: someone claims you qualify for a “government grant” and tries to move the conversation to WhatsApp/Telegram.
HHS OIG explicitly warns against responding, paying, or sharing financial information with anyone offering free HHS grants via social media/email:
Some scams hide behind real services like grant writing.
Here’s the honest truth:
There’s also a governance/ethics issue that nonprofits often miss:
Commission-style compensation (percentage of funds raised) is widely considered inappropriate/unethical in nonprofit fundraising.
Examples:
Important nuance: “Unethical compensation structure” isn’t always “criminal scam.” But in the real world, bad actors love compensation models that make oversight harder.
If any of these happen, pause immediately:
Some Helpful References:
Pro tip: The moment someone asks for MFA codes, assume account takeover is the goal.
This process is intentionally simple. Your team should be able to run it without debate.
Find the proof:
No paper trail = high probability it’s fake.
Start with Grants.gov:
If they can’t answer quickly and specifically, don’t move forward.
A lot of nonprofits get stuck here, so let’s draw clean lines.
Pro tip: A real grant pro sells process + deliverables, not “free money.”
For individuals and teams looking to secure more funding with less effort. Streamline your grant-writing process, stay organized, and achieve better results with proven templates and AI-driven support.
Thanks for reaching out. We only respond to opportunities that we can verify through official funder websites and documented applications.
Please provide the official program page link and the application ID associated with our submission. We will verify through official channels.
We do not pay fees to receive grant funds. If there is an official cost, please provide the public documentation on your official website showing the fee requirement and payment process.
We only submit financial information through official grant portals and never by email, phone, or third-party links.
If you already replied, paid, or shared information, don’t panic — contain the damage.
If you want fewer surprises, build guardrails.
Make it explicit: no one on your team can pay “fees” to receive a grant.
A shared list with:
Most “grant scams” are ultimately email/identity attacks with grant-themed bait. MFA and access control prevent a lot of damage.
Legitimate funders generally don’t require you to pay to receive grant funds. Many scam warnings specifically call out “processing/delivery” fee tactics.
Start here:
Yes! Paying for time and deliverables can be normal. What you should be cautious about:
Any request for money (especially via gift cards/wire/crypto) to “release” or “process” grant funds.
For individuals and teams looking to secure more funding with less effort. Streamline your grant-writing process, stay organized, and achieve better results with proven templates and AI-driven support.