Fake Foundation Grant Scams via Email
How fraudulent grant award emails impersonate foundations and government programmes to charge processing fees for grants that do not exist.
Part of: Fake Foundation Grant Scams
Last reviewed: 8 June 2026
Grant funding — from foundations, government bodies, or non-profit organisations — is a legitimate source of support for individuals, community groups, and small businesses. Fraudsters exploit widespread awareness that such funding exists by sending unsolicited emails informing recipients that they have been selected as grant recipients, then charging processing or release fees for funds that were never allocated.
These scams are a specific type of advance-fee fraud, adapted to the grant context. The official-sounding language of the emails, reference to real foundation names or government programmes, and the apparently large sums being offered can overwhelm scepticism, particularly for recipients who have a genuine financial need.
How this scam works on email
An email arrives informing the recipient that they have been selected to receive a substantial grant — often citing a specific amount running to tens of thousands of dollars or pounds. The email may reference a real foundation name or a convincing-sounding fabricated one, and it explains that the grant was awarded based on the recipient's community profile, charitable work, business registration, or entry into an unspecified programme.
To claim the grant, the recipient is instructed to pay a processing fee, an administrative charge, a tax clearance fee, or a legal registration cost — typically a few hundred to a few thousand dollars, framed as a small fraction of the total grant value. Each payment is followed by a new obstacle: another fee, a compliance requirement, or a form requiring additional personal and financial information.
The emails may include fabricated letterheads, grant reference numbers, and names of real or fictional foundation officers to add credibility. Some operators target people who have previously applied for legitimate grants, using lists of applicants obtained through data breaches or purchased from brokers.
Common red flags
- Email arrives unsolicited informing you of a grant award you never applied for
- Processing fee, admin charge, or tax payment is required before the grant can be released
- Foundation name is unfamiliar or very similar to a well-known legitimate foundation
- Grant amount is exceptionally large relative to any described eligibility criteria
- Each fee payment leads to a further fee rather than release of the grant
- Email contains grammar or formatting inconsistencies not typical of official institutional communications
How to protect yourself
- Verify the foundation's registration through the IRS Tax Exempt Organisation Search, the Foundation Directory, or equivalent national registry
- Navigate independently to any foundation's official website to verify whether the grant programme described exists
- Understand that legitimate grants do not require upfront fee payments before disbursement
- Never provide bank account details in response to an unsolicited grant award email
- Report the email as phishing to your email provider and delete it
How to report it
- Forward the email to the FTC's phishing reporting address at [email protected]
- Report to the FTC at reportfraud.ftc.gov or IC3 at ic3.gov (US)
- Report to Action Fraud at actionfraud.police.uk (UK)
- If the email impersonates a real foundation, notify that foundation directly so they can issue a warning to their network
Frequently asked questions
Do real foundations ever contact people directly with grant awards?
Some foundations make proactive awards to organisations or individuals they have identified through their own research. However, legitimate grants never require upfront fee payments from the recipient before the grant is released. That alone is a definitive red flag.
Is it safe to reply to a grant award email to ask for more information?
Replying confirms your email address is active and monitored, which can lead to increased targeting. It is safer to delete the email and independently verify the claimed foundation through official registries rather than engaging with the sender.