How to spot a grant scam in Canada

A real Canadian grant never asks you to pay a fee to apply, and no one can guarantee you'll get one. If someone calls, texts or emails you out of the blue to say you qualify for "free government money", treat it as a scam until you have checked it yourself. The safest habit is simple: find the program on the funder's own website, and apply there.

Scammers know that grants sound like free money, and that most people don't know how funding really works. This post walks through the warning signs and what to do instead. CanGrant keeps a short list of the same signs on our scams page.

Do you ever have to pay to apply for a grant?

No. Public funders, Crown corporations and community foundations do not charge an application fee for their grants. If a person or website asks for a "processing fee", "release fee", "tax" or "insurance" before you get your money, stop. That request alone is enough to walk away.

Be just as careful with requests for gift cards, cryptocurrency, wire transfers or e-transfers to an individual. No real funder asks for payment that way.

What do grant scam calls and texts look like?

Real funders almost never contact you first to say you've won something you didn't apply for. Common scam patterns include:

A call, text or social media message saying you've been "selected" or "approved" for a grant.
A message that seems to come from a friend's account, telling you they got money and you can too.
Pressure to act today, before the "offer expires".
Requests for your social insurance number, banking details or a photo of your ID before anything else.
A caller who gets angry or threatening when you ask questions.

If you're unsure, hang up. Then look up the funder yourself and contact them using details from their own website, not the number or link you were given.

How can you tell a fake government website?

Scam sites copy the look of real ones: the colours, the logos, even the wording. The address bar is harder to fake. Before you type anything in, check that the web address belongs to the funder.

Federal Government of Canada programs live on addresses ending in canada.ca or gc.ca.
Provincial programs use the province's own address. Look it up yourself rather than trusting a link.
Crown corporations, regional development agencies and foundations each have their own site. A program page should send you to that site, not to a third party.

Watch for addresses that add extra words, swap letters or use an unusual ending. Search results and ads can point to lookalike sites, so a top result isn't proof that a site is real.

CanGrant itself is independent and not part of any government. Each program page links to the funder's own site so you can apply directly. We never take applications, and we never ask for payment.

Can a grant be "guaranteed"?

No. Almost every grant is assessed. Funders check whether you meet the eligibility rules, whether your project fits their goals, and whether there is money left in the budget. Even a strong application can be turned down. Anyone who promises a guaranteed grant, or says they have "inside access", is not being honest with you.

The same goes for claims about huge sums for anything you like. Real grants pay for a specific project and a specific list of eligible costs, and many ask you to share the cost. See small business grant myths for more on what grants really pay for.

Are grant consultants scams?

Not always. Some consultants and grant writers do honest, useful work: they help you find programs, plan a budget and write a clear application. Others charge large upfront fees for lists of programs you could find for free, or promise results they can't deliver.

Before you hire anyone:

Ask what you are paying for, in writing.
Be wary of anyone who promises approval, or who says only they can get you access.
Ask whether the funder allows consultant fees as a project cost. Many don't.
Remember you can always apply yourself, at no cost.

Our post on whether to hire a grant writer goes into more detail.

What should you do if you think it's a scam?

Stop contact. Don't send money or personal details, and don't click links in the message.
Look up the funder yourself and ask them whether the offer is real.
If you already paid or shared banking details, call your bank right away.
Report it to your local police and to the Canadian Anti-Fraud Centre.
Warn others in your network, especially if the message came from a hacked account.

To look for real programs safely, start with the eligibility check or browse funding for small businesses, non-profits and individuals. Our guide to small business funding in Canada explains the main types.

Frequently asked questions

Is there free government money that you don't have to apply for?

Not in the way scam ads describe it. Grants, rebates and tax credits each have their own rules, and you apply or claim through the funder or your tax return. No one hands out grants to people who didn't ask.

Will a real funder ever call me first?

A funder may contact you about an application you already sent, for example to ask a question. Even then, if anything feels off, hang up and call them back using the contact details on their own website.

Does CanGrant charge to use the site or apply for programs?

No. CanGrant is free and independent. We don't take applications or payments. Each program page links to the funder, and you apply with them directly.

How do I check that a program is real?

Find it on the funder's own website, check that the address belongs to that funder, and compare the details. If you found it on CanGrant, the program page links to the funder's site.

This article explains how funding generally works. Each program sets its own rules, amounts and dates: check the program page and the funder’s site before you apply. A CanGrant editor hasn’t reviewed this article yet.