Winning a grant is an exciting milestone, but it’s not the end of the journey, it’s the beginning of a new responsibility. Once funding is awarded, funders expect clear evidence that their money is being spent responsibly and that the promised outcomes are being delivered. Many organisations focus heavily on the application stage but underestimate the importance of post-award compliance. This is often where avoidable mistakes lead to serious consequences, including repayment of funds, reputational damage, or lost opportunities for future funding.

Here are the most common pitfalls and how you can avoid them:

1. Poor financial record-keeping
Grant money must be tracked separately from other income and expenses. Without proper systems, it’s easy to blur the lines, leading to ineligible costs being claimed.
Example: A project team charging general office supplies to a grant without justification risks those costs being disallowed.
How to avoid it: Set up separate budget codes or a dedicated project account to ensure all transactions are transparent and easily auditable.

2. Missing reporting deadlines
Most grants require progress and financial reports at fixed intervals. Late or incomplete submissions can delay payments or damage funder confidence.
How to avoid it: Assign responsibility for reporting to a specific person and use project management tools to track deadlines well in advance.

3. Inadequate impact reporting
Funders don’t just want to know where the money went, they want to see the difference it made. Reports that focus only on expenditure without evidence of outcomes can weaken credibility.
Example: Instead of simply stating “we trained 50 staff,” explain how the training improved efficiency, reduced costs, or supported innovation.
How to avoid it: Define measurable KPIs at the start of the project and capture both quantitative data (e.g. reduced energy use by 20%) and qualitative evidence (e.g. testimonials or case studies).

4. Non-compliance with grant terms
Every grant has its own rules, from procurement policies to eligible expense categories. Failing to follow them can put funding at risk.
Example: Purchasing equipment from a preferred supplier without competitive quotes, when the grant requires them, can result in rejected costs.
How to avoid it: Review the grant agreement thoroughly at the start, and train project staff on the compliance requirements.

5. Weak communication with funders
Communication should not be limited to submitting mandatory reports. If challenges arise such as delays, staffing changes, or unexpected costs, keeping funders informed demonstrates professionalism.
How to avoid it: Provide regular updates and notify the funder early if issues may impact delivery. Most funders prefer transparency over surprises.

Why Compliance Matters

Strong compliance is about more than just avoiding penalties. It demonstrates accountability, builds trust with funders, and increases the likelihood of securing repeat funding. Many funders prioritise organisations with a proven track record of delivering results and maintaining compliance. Poor reporting, by contrast, can damage long-term opportunities.

How Inventya Can Help

At Inventya, we help organisations not only win grants but also manage them effectively post-award by:

• Compliance Reviews: Making sure your reporting processes meet funder requirements from the outset.
• Financial Tracking Systems: Helping you set up structures that make budgeting and record-keeping clear and compliant.
• Impact Measurement Frameworks: Guiding you on how to capture evidence that proves your project’s success.
• Audit Support: Preparing documentation and records so you’re ready if funders or auditors ask for evidence.
• Long-Term Funding Readiness: Using strong reporting practices to enhance your reputation and position you for future funding success.

With Inventya’s support, you can turn compliance into a strength, protecting your current funding while building credibility for future opportunities.

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