Applying for grant funding can feel like a full-time job—but even the strongest application can fall flat if your financials don’t make the cut. Funders aren’t just interested in what you want to do—they want proof you can handle the money. So what exactly are they looking for when they flip to your financial reports?
Let’s break it down:
1. Up-to-Date Annual Accounts
This one’s non-negotiable. Funders want reassurance that your organisation is being run responsibly. That means:
Your latest annual accounts are submitted on time (to the Charity Commission, Companies House or both).
They’re clearly presented—no missing pages, confusing categories or scribbled notes.
💡 Top tip: If your last accounts showed a deficit, be prepared to explain why—and what you’ve done since to stabilise things.
2. Realistic, Detailed Budgets
A vague “£10,000 for community activities” won’t cut it. Funders want to see:
Clear breakdowns of how much you need and what it’s for.
That your figures are realistic—no wishful thinking or padded estimates.
Alignment between your budget and your proposed outcomes.
If you’re applying for project funding, separate your core costs (like admin or insurance) from delivery costs (like staff or materials). Transparency is everything.
3. Evidence of Sound Financial Management
A solid financial report should show:
You’re managing your money responsibly.
There’s no funny business—no massive unexplained variances or erratic spending patterns.
You’ve got appropriate processes in place (dual signatories, financial controls, etc.).
Bonus points if you can show you’ve planned for the long-term, not just the next six months.
4. Matched Funding and Income Sources
Many funders don’t want to be your one and only. They’ll want to know:
Where else you’re applying for funds.
What income is already secured.
How sustainable the project will be after their funding ends.
📌 Tip: If your accounts show regular donations, trading income, or fundraising activities—that’s gold. It shows resilience and independence.
5. Clarity and Consistency
Even if your finances are squeaky clean, funders will be suspicious if things don’t match up. Make sure:
Your budget figures are consistent with your application narrative.
Project costs align with what you say you’ll deliver.
You haven’t accidentally contradicted yourself across different sections.
Ready to Impress Funders?
Use our Funding Readiness Checklist to make sure the rest of your documents are just as strong. It covers everything from policies and staffing to delivery capacity and governance.
And if you’re still not sure where to start—
👉 Join the UK Charities and CICs Support group on Facebook
👉 Or book a 1:1 session with me at savvyhelpersltd.com
Let’s make sure your finances tell a story of confidence, credibility and capability—because your good work deserves great funding.
