15 Grant Application Mistakes That Get You Rejected (And How to Avoid Them)

By GrantCompass Team • Updated November 2025 • 12 min read

After reviewing hundreds of Canadian grant applications, we've identified the patterns that separate winners from losers. Avoid these 15 common mistakes, and you'll dramatically increase your chances of approval.

Eligibility Mistakes (The Instant Rejections)

1 Applying When You're Not Eligible

This seems obvious, but 20%+ of applications come from businesses that simply don't meet basic eligibility criteria. Reviewers see this as a waste of their time.

Fix: Read the eligibility section THREE times. Check every requirement: company size, industry, location, incorporation status, revenue thresholds. If anything is ambiguous, call the program officer and ask.

2 Wrong Grant for Your Project

A tech company applying to an agriculture grant. An established business applying to a startup program. Mismatched applications show you didn't do your research.

Fix: Use GrantCompass's grant finder to match your business profile with appropriate programs. Don't force-fit your project into the wrong grant.

3 Starting Work Before Approval

Most grants only fund work done AFTER the contribution agreement is signed. If you start early, those costs become ineligible - even if you're eventually approved.

Fix: Wait for written approval. If timeline is critical, ask if pre-approval exists. Document any discussions about early work in writing.

Application Quality Mistakes

4 Copy-Pasting Generic Content

Reviewers can spot recycled applications instantly. Generic descriptions that could apply to any business show you're not serious about this specific program.

Fix: Customize every application. Reference the program's specific objectives. Use their terminology. Show you understand what THEY want to fund.

5 Not Answering the Actual Questions

The #1 complaint from reviewers: applicants don't answer what's being asked. They write about what THEY want to say, not what the program needs to know.

Fix: Highlight every question in the application. Answer each one directly before adding context. If they ask for 3 things, give them exactly 3 things - numbered.

6 Vague, Unmeasurable Objectives

"Increase sales" or "improve efficiency" tells reviewers nothing. Without specific metrics, they can't evaluate your project or measure success.

Fix: Use SMART objectives: "Increase export revenue from $200K to $500K within 24 months by entering 3 new European markets." Numbers, timelines, specifics.
Pro Tip: Our Grant Writing Templates include fill-in-the-blank sections that force you to include measurable objectives. It's impossible to be vague when you follow the structure.

7 Weak Problem Statement

If you can't clearly articulate the problem you're solving, reviewers won't understand why your project matters. "We want to grow" isn't a problem statement.

Fix: Frame the problem from the market's perspective. What pain point exists? Who suffers from it? What happens if it's not solved? Then position your project as the solution.

8 No Evidence or Validation

Claims without proof get ignored. "The market is huge" or "customers love us" means nothing without data to back it up.

Fix: Include market research, customer testimonials, letters of intent, pilot results, or third-party validation. Every significant claim needs supporting evidence.

Budget Mistakes

9 Unrealistic Budget Numbers

Both padding and underestimating kill applications. Inflated costs look dishonest. Unrealistically low budgets suggest you haven't thought it through.

Fix: Get actual quotes for major expenses. Research market rates for salaries and contractors. Show your calculations. Reviewers know what things cost.

10 Including Ineligible Costs

Every program has costs that aren't covered (often: marketing, overhead, capital equipment, existing salaries). Including these wastes budget space and shows you didn't read the guidelines.

Fix: Review the "eligible costs" section carefully. When in doubt, ask the program officer. Only include what's explicitly allowed.

11 Budget Doesn't Match Activities

Your timeline says "hire developer in Q1" but your budget shows no salary until Q3. Inconsistencies between budget and activities raise red flags.

Fix: Create budget and timeline together. Cross-reference every activity with its cost. Have someone else check for mismatches.

Presentation Mistakes

12 Exceeding Page/Word Limits

Limits exist for a reason. Exceeding them is automatic disqualification in many programs, or at minimum, reviewers stop reading at the limit.

Fix: Check limits before you start. Edit ruthlessly. If you can't fit everything, your content isn't focused enough.

13 Spelling, Grammar, and Formatting Errors

Sloppy applications suggest sloppy project management. If you can't proofread a grant application, can you manage a complex project?

Fix: Proofread multiple times. Use spell-check AND human review. Have someone unfamiliar with the project read it for clarity.

14 Submitting at the Last Minute

Systems crash. Uploads fail. Documents get corrupted. Last-minute submissions leave no room for technical problems or final reviews.

Fix: Submit at least 2-3 days before deadline. Use that buffer to fix any issues. You can usually update a submitted application until the deadline.

15 Missing Required Documents

Missing attachments = instant rejection. Letters of support, financial statements, quotes - whatever they ask for, provide it.

Fix: Make a checklist of required documents. Check each one off as you attach it. Have someone verify your submission is complete.

Stop Making These Mistakes

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The Bottom Line

Grant applications fail for predictable reasons. The programs WANT to fund good projects - they just need applications that clearly demonstrate eligibility, feasibility, and impact.

Before your next application:

Follow these guidelines, avoid the 15 mistakes above, and you'll already be ahead of most applicants.