Your program is solid. Your mission is clear. But your grant proposals keep getting turned down. What gives?
If you’re a Canadian nonprofit struggling to secure funding, the issue might not be your mission or your team. It might be how you’re presenting your financials and organizational readiness.
This post unpacks the most common reasons funders say no, and what you can do to build confidence, avoid red flags, and position your organization as a strong candidate for future grants.
The Real Reason Funders Say No
It’s not always about the project or the proposal. Funders are risk-averse by nature. They’re looking for organizations they can trust. Organizations who won’t just spend the money, but those who’ll also manage it well, report accurately, and follow through.
If your financial reporting is unclear, inconsistent, or incomplete, funders will say no. If your budget looks unrealistic or your outcomes are vague, they’ll move on.
The fix? Better financial operations, stronger internal systems, and grant proposals that reflect your organization’s true capacity and professionalism.
15 Must-Track Metrics & KPIs for Nonprofit Success
1. Your Financial Statements Are Confusing or Incomplete
Funders expect to see professional financials. If you submit internal reports instead of clean financial statements, or if your documents raise more questions than they answer, your application may be flagged.
Common Issues:
- Submitting internal reports instead of formal financial statements
- Mixing restricted and unrestricted funds
- Missing context for large surpluses, deficits, or changes
Fix It:
- Include a clear income statement and balance sheet
- Segment restricted funds and explain any major variances
- Add a short narrative to contextualize the numbers
2. Your Grant Budget Doesn’t Match Your Program Plan
Funders review budgets carefully. If the numbers don’t make sense, or don’t align with what you say you’ll do, that can erode trust.
Common Issues:
- No breakdown of expenses
- Admin-heavy budgets without justification
- Underestimating or padding certain cost categories
Fix It:
- Provide a detailed, line-by-line budget
- Tie each cost to a program activity
- Use previous project budgets or actuals to support estimates
3. You Can’t Demonstrate Past Grant Performance
Common Issues:
- Missing or delayed reporting on past grants
- Poor tracking of restricted funds
- No outcomes data or project recap
Fix It:
- Create a grant tracker with funder, amount, outcomes, and reporting timelines
- Include brief case studies of previous funded work
- Be upfront about past challenges and how you addressed them
4. Your Bookkeeping and Internal Controls Raise Red Flags
Funders don’t expect you to have a full in-house finance department. But they do expect basic systems and controls to be in place.
Common Issues:
- No clear policies on spending, approvals, or reimbursements
- Frequent reporting errors or inconsistencies
- Over reliance on one person to manage finances
Fix It:
- Document your financial controls and approval workflows
- Use a second reviewer for reports and reconciliations
- Consider outsourcing bookkeeping or bringing in a fractional controller
5. You’re Not Fundraising Proactively
Waiting until you need a grant is too late. Funders can tell when you’re rushing or applying reactively. It signals instability and weak planning.
Common Issues:
- Last-minute or boilerplate applications
- Poor alignment between funder priorities and your program
- No clear long-term funding strategy
Fix It:
- Research and shortlist aligned funders year-round
- Develop a rolling grant calendar with deadlines and prep time
- Set up systems to track grant activity, reporting, and outcomes
6. You Don’t Have a Strong Financial Reporting Process
Even the best grant writers need a foundation of strong reporting. If your finance team scrambles to pull together reports or can’t answer basic questions, funders notice.
Fix It:
- Build a monthly reporting cadence with your board or finance team
- Use simple dashboards or summaries to track revenue, expenses, and restricted funds
- Get outside help if your reports are consistently late, unclear, or manual
How Enkel Can Help
Grant success starts with solid financials. At Enkel, we work with Canadian nonprofits to strengthen their finance operations, build better reporting systems, and support confident, funder-friendly storytelling.
Whether you need help cleaning up your books, segmenting restricted funds, or building better reporting templates, our fractional controllers and CFOs can help you show up strong in your next grant cycle.
Talk to an Enkel Expert to learn more, or explore our fractional controller, CFO, and nonprofit bookkeeping services for Canadian organizations.
