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Common Eligibility Criteria for Canadian Grants

Written by GrantMatch Team | Apr 16, 2025 5:27:31 PM

Understanding Funding Eligibility: A Comprehensive Guide to Navigating the Complex World of Grant Qualifications

Eligibility requirements for grant funding can seem complicated and frustrating, especially when trying to determine which funding opportunities are best for your business, municipality, or non-profit. Here’s the good news: most grant programs follow consistent themes and structures. Once you understand common eligibility criteria for Canadian grants, it becomes much easier to spot the opportunities that align with your goals.  

At GrantMatch, our mission is to simplify the grant process so you can focus on bringing your important projects to life and make the most of your funding potential. In this blog, we’ll walk you through key eligibility criteria for grants so that you can avoid wasting time on the wrong fit. Let’s dive in! 

Who Is Eligible for Grants in Canada? 

In theory, almost anyone in Canada—whether you’re a business owner, municipal official, non-profit leader, researcher, student, or artist—can be eligible for grant funding, as long as you meet the specific criteria set out by each funding program. Different grants are designed for different sectors, regions, and project types, so the key is finding the ones that match your profile and goals.  

Where Do I Start? 

The first place to start to determine your grant eligibility is on the grant program’s website. Typically, the website will include a grant funding snapshot with an overview of funding amounts, eligible applicants, and eligible projects. Next, navigate to the program’s Application Guide, which can be found linked on their website either as a separate landing page or as a downloadable pdf document.  

The Application Guide goes into the details of the program, including lists of eligible entities, eligible project costs, and how applications are reviewed and scored. The Applicant Guide often includes a list of ineligible expenses that you can use to cross-reference your expected project costs to determine how best to move forward.  

Eligible Sectors 

The funding snapshot on a grant program’s website, as well as the Applicant Guide for the program, will outline eligible sectors.  

The five most common sectors that are eligible for grant funding in Canada are as follows:  

  • Nonprofit organizations (registered charities, societies, associations) 
  • Indigenous governments and organizations 
  • Municipalities and public sector entities 
  • Businesses, often segmented by size (e.g., small or medium enterprises) 
  • Educational institutions and research bodies 

Note that some grant funding programs may exclude for-profit companies or government entities depending on their mandate, so it’s important to always double check that your sector is eligible for funding for that specific program before moving on to confirming other eligibility criteria.  

Incorporation and Registration Status  

For specific sectors, there may be additional eligibility requirements that help the program verify your operation within that sector. For example, grants tailored to eligible Canadian charities may require the applicant to include their registered charity number (a 15-digit identifier assigned by the Canada Revenue Agency (CRA) to registered charities). This distinction would make non-profit organizations ineligible, despite operating for charitable purposes, because they are not registered as a charity with the CRA. 

Common incorporation and registration eligibility requirements for grants include: 

  • Incorporation under federal or provincial legislation 
  • Registration with the CRA if applying as a charity 
  • A current and active business number or charity number 

A detail to keep in mind when determining eligibility is that some programs deem newer organizations as ineligible, unless they have operated for a minimum time outlined by the program. Funders use this eligibility rule as a risk management tool that better ensures organizational stability and reduces the risk of awardees mismanaging public funds.  

Geographic Restrictions 

Now that you’re sure that the funding program is open to your sector and that you have the necessary incorporation or registration status, confirm that the program does not have any geographic restrictions. Eligibility often depends on where the applicant is located or where the project will take place. Keep your eyes peeled for:  

  • Provincial or territorial limitations 
  • Urban vs. rural distinctions 
  • Indigenous community or remote/northern community limitations 

For example, the City of Toronto would not be eligible for a grant program tailored to rural, remote, or northern communities. 

Project and Project Cost Alignment  

Grants are designed to support specific kinds of work and initiatives, so applicants must ensure that their project and all project costs align with the objectives of the grant program. Grant programs will outline eligible costs and often include a list of costs that are ineligible. For example, the objective of the GHG Impact Retrofit program offered through the Green Municipal Fund, is to reduce greenhouse gas emissions in community buildings. Under this program, capital costs for construction, renovation, or modernization of a facility are eligible, while the cost to purchase or lease a property is explicitly ineligible. 

Eligibility is frequently tied to:  

  • Sector focus (e.g., clean energy, housing, innovation, manufacturing, agriculture) 
  • Project type (e.g., infrastructure development, capacity building, research and development) 
  • Community or economic impact goals (e.g., job creation, emissions reduction) 

 

Financial Health and Capacity 

Funders assess the financial status of an organization or business before awarding funds. To be eligible for grant funding in Canada, you will need audited financial statements, minimum annual revenue or budget thresholds, and a demonstration of financial need or sustainability.  

Municipalities seeking grant funding often require a documented council resolution to ensure that all members of the municipal council agree to fund the cost share of the project using municipal funds. If council resolution is required, be sure to plan ahead so that council has time to discuss, deliberate, and reach an agreement prior to submission. 

Compliance and Reporting Obligations 

A common eligibility criterion for Canadian grants is compliance. You’ll be hard pressed to find grant funding that does not include compliance and reporting obligations as a stipulation of receiving funds.  

Through compliance and reporting, the grant program is able to monitor how funds are being used and verify that costs incurred align with program priorities and objectives. For example, grant funding for job creation will require the awardee to provide documentation detailing the number of new employees, hours worked, wage rates, or other pertinent information. 

Failure to meet reporting and compliance requirements can disqualify applicants or lead to clawbacks.  

Deadlines 

Even eligible applicants will have their funding requests rejected if their application is submitted after the deadline. 

Grant programs include information on deadlines for submission on the program website and within the Application Guide. Alternatively, some grant programs operate on an open intake schedule, meaning applications are accepted year-round and reviewed at regular intervals, until all funds are allocated.  

Whether the funding opportunity that’s best for you has a strict submission deadline or an open intake period, it’s important to always read program guidelines carefully and plan to submit as early as possible. 

How GrantMatch Can Help 

Applying for government funding can be complex and time-consuming, but you don’t have to go it alone. At GrantMatch, we’re experts in maximizing funding opportunities for projects like yours. Here’s how we can support you: 

  1. Application Preparation: We’ll guide you through the entire application process, ensuring your submission is complete and compelling. 
  1. Funding Optimization: Our team works to maximize the funding your project can receive by aligning it with program goals and eligibility criteria. 
  1. Ongoing Support: From application to approval and beyond, we’ll provide expert advice every step of the way. 

Now that you’re familiar with the most common eligibility criteria for Canadian grants, our team at GrantMatch is here to help you take the next step. Whether you need assistance identifying the right programs or crafting a winning application to secure funding for your next big project, we’re ready to support you every step of the way.