Things That Can Get Your Funding Yanked (and How to Avoid Them)
Getting a grant is a big win. But keeping it? That takes work.
Funders invest in trust. And when that trust breaks—intentionally or not—they can (and do) pull funding back. It’s rare, but it happens. If you want to stay in good standing, it’s worth knowing what sends red flags flying.
Here are the most common missteps that can cost you a grant—and how to make sure it doesn’t happen to you.
🚩 1. Missing Deadlines (Without Communication)
Reports, financials, updates—deadlines matter. Funders rely on timely information to justify their support and plan future investments.
What gets you in trouble:
Submitting reports late with no explanation
Ghosting entirely
Asking for extensions at the last minute (or after the deadline)
What to do instead:
Track deadlines centrally
Communicate delays early and professionally
Use a system (like PureGrant) to automate reminders and drafts
🚩 2. Spending Outside the Approved Budget
Grants are not blank checks. Funders expect you to spend money the way you said you would.
What gets you in trouble:
Reallocating funds to different activities without permission
Over- or under-spending key line items
Charging indirect costs when they weren’t allowed
What to do instead:
Review the approved budget before spending
Keep solid internal controls and documentation
If things change, ask for approval before shifting funds
🚩 3. Failing to Deliver on Outcomes
Funders understand that some goals evolve—but flat-out failing to deliver (or failing to explain why) erodes trust quickly.
What gets you in trouble:
Vague or missing impact data
No updates on progress
Reporting only anecdotal stories with no metrics
What to do instead:
Track outcomes from day one
Be honest in reporting—include challenges and what you’re adjusting
Include data that shows progress, even if goals shift
🚩 4. Lack of Internal Oversight
You don’t need a CFO to manage a grant well, but someone needs to be accountable.
What gets you in trouble:
Miscommunication between program and finance teams
Staff turnover with no handoff
Poor or missing documentation
What to do instead:
Assign a grant point person
Document systems and processes
Use tools to keep materials in one place (hello, grant folders and shared calendars)
🚩 5. Ethics or Compliance Issues
This one’s a deal-breaker.
What gets you in trouble:
Fraud or misuse of funds
Conflicts of interest
Misrepresentation in your application or reports
What to do instead:
Maintain strong ethics policies
Train your team on grant compliance
When in doubt, disclose and ask
Final Thoughts
Funders don’t yank grants lightly—but they will if the partnership breaks down. The good news? Almost all of this is preventable.
Communicate clearly. Spend responsibly. Deliver honestly. And when things go wrong, own it. That’s what funders really want: a partner they can trust.
Sheena Link is the co-founder of PureGrant, an AI grantwriting platform that helps nonprofits manage deadlines, budgets, and reporting with ease—so they can win and keep the funding they’ve earned.