{"id":18946,"date":"2022-05-09T09:37:36","date_gmt":"2022-05-09T13:37:36","guid":{"rendered":"https:\/\/www.grantwatch.com\/grantnews\/?p=18946"},"modified":"2022-05-26T10:06:48","modified_gmt":"2022-05-26T14:06:48","slug":"warning-if-you-misuse-grant-money-you-have-to-pay-it-back","status":"publish","type":"post","link":"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/","title":{"rendered":"Warning: If You Misuse Grant Money, You Have to Pay It Back!"},"content":{"rendered":"\n<p>After all the hard work of winning a grant, the last thing you want to do is pay it back. It is important to remember that grants come with restrictions. If you don&#8217;t abide by these regulations, the funding source can (and will) withdraw your grant. So, what warrants a misuse and how can you avoid it?<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>How Can You Misuse Grant Money?<\/strong><\/h5>\n\n\n\n<p>Strict guidelines&nbsp;are provided by the funding source, regarding what you can and cannot do with the grant money. However, if you spend any of the grant money on something that is unallowable, you will be asked to return the grant. In many cases, if you&#8217;ve already spent the money, you could have to pay it back out of your own pocket! On top of this, the funding source may issue you a fine, ban you from applying for grants again, and you may even face jail time. <\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Anyone Can Misuse Funds<\/strong><\/h5>\n\n\n\n<p>Anyone can misuse funds, whether you&#8217;re a small business, nonprofit organization, or government agency. As an example, Oklahoma&#8217;s &#8220;<strong><a href=\"https:\/\/oklahomawatch.org\/2022\/05\/02\/stitt-gave-families-8-million-for-school-supplies-in-the-pandemic-they-bought-christmas-trees-gaming-consoles-and-hundreds-of-tvs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Governor\u2019s Emergency Education Relief Funds<\/a><\/strong>&#8221; grant was intended to help students with school supplies during the COVID-19 pandemic. However, millions of dollars were misused to purchase Christmas trees, gaming consoles, electric fireplaces, and outdoor grills. As a result, Oklahoma ultimately returned<strong>&nbsp;<\/strong>$2.9 million&nbsp;in unspent relief money to the federal government&nbsp;and is also currently undergoing an investigation by federal auditors.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Three Ways to Help Manage Your Grant Award<\/strong><\/h5>\n\n\n\n<p>Typically, funding sources will provide you with a list of appropriate uses for the funds, as well as invoicing\/reporting timelines and other specific formats for you to follow. Additionally, grant funders suggest these three tips for post-award management:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Open a separate bank account for the grant. <\/strong><br \/>This helps to keep the grant money separate and avoid complications. <\/li><li><strong>Keep a hard copy and an electronic copy of all reports and records.<\/strong><br \/>Record all reports, receipts, obligations, and expenditures and store them in both formats.<\/li><li><strong>Make sure all changes and modifications have been approved by the funding source.<br \/><\/strong>Even if you are in doubt, submit it in writing to the funding source. It will be better than receiving a penalty for misrepresentation.<br \/><\/li><\/ol>\n\n\n\n<p>While grants are \u201cfree money,&#8221; they do come with strings attached. No grantor wants to see their funds wasted, abused, or used fraudulently. A failure to abide by the stipulations set forth by the funding source can result in severe consequences. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>After all the hard work of winning a grant, the last thing you want to do is pay it back.<\/p>\n","protected":false},"author":20,"featured_media":19344,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[124,147],"tags":[],"class_list":["post-18946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-community","category-latest"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Warning: If You Misuse Grant Money, You Have to Pay It Back!<\/title>\n<meta name=\"description\" content=\"After all the hard work of winning a grant, the last thing you want to do is pay it back! Even &quot;free money&quot; comes with restrictions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Warning: If You Misuse Grant Money, You Have to Pay It Back!\" \/>\n<meta property=\"og:description\" content=\"After all the hard work of winning a grant, the last thing you want to do is pay it back! Even &quot;free money&quot; comes with restrictions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/\" \/>\n<meta property=\"og:site_name\" content=\"GrantNews\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/pages\/GrantWatch\/162625900556850\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-09T13:37:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-26T14:06:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/04\/Warning-If-You-Misuse-Grant-Money-You-Have-to-Pay-it-Back-V3-copy-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nikita\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@grantwatch\" \/>\n<meta name=\"twitter:site\" content=\"@grantwatch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nikita\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/\"},\"author\":{\"name\":\"Nikita\",\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/#\/schema\/person\/084d66842ef8fb1e9a91018157707f60\"},\"headline\":\"Warning: If You Misuse Grant Money, You Have to Pay It Back!\",\"datePublished\":\"2022-05-09T13:37:36+00:00\",\"dateModified\":\"2022-05-26T14:06:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/\"},\"wordCount\":420,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/04\/Warning-If-You-Misuse-Grant-Money-You-Have-to-Pay-it-Back-V3-copy-1.jpg\",\"articleSection\":[\"Community\",\"Latest\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/\",\"url\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/\",\"name\":\"Warning: If You Misuse Grant Money, You Have to Pay It Back!\",\"isPartOf\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.grantwatch.com\/grantnews\/warning-if-you-misuse-grant-money-you-have-to-pay-it-back\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/04\/Warning-If-You-Misuse-Grant-Money-You-Have-to-Pay-it-Back-V3-copy-1.jpg\",\"datePublished\":\"2022-05-09T13:37:36+00:00\",\"dateModified\":\"2022-05-26T14:06:48+00:00\",\"description\":\"After all the hard work of winning a grant, the last thing you want to do is pay it back! 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And in most cases, that's true. You usually don't have to pay them back, which is why they're such a popular funding option. But here's the catch: every grant comes with rules and\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.grantwatch.com\/grantnews\/general\/"},"img":{"alt_text":"Do You Ever Have to Pay Back a Grant?","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/05\/59_img-950x650_T.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/05\/59_img-950x650_T.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/05\/59_img-950x650_T.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/05\/59_img-950x650_T.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":19933,"url":"https:\/\/www.grantwatch.com\/grantnews\/do-you-have-to-pay-back-a-grant\/","url_meta":{"origin":18946,"position":1},"title":"Do You Have to Pay Back a Grant?","author":"Nikita","date":"June 23, 2023","format":false,"excerpt":"If you are new to the realm of grant funding, then you may wonder, \"do I have to pay back a grant?\" The short answer is no. However, if you do not abide by the rules outlined by the funding source, then you will have to return the funds. GrantWatch\u2026","rel":"","context":"In &quot;Community&quot;","block_context":{"text":"Community","link":"https:\/\/www.grantwatch.com\/grantnews\/community\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Do-you-have-to-pay-back-a-grant.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Do-you-have-to-pay-back-a-grant.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Do-you-have-to-pay-back-a-grant.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Do-you-have-to-pay-back-a-grant.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Do-you-have-to-pay-back-a-grant.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2022\/06\/Do-you-have-to-pay-back-a-grant.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":65759,"url":"https:\/\/www.grantwatch.com\/grantnews\/who-pays-for-grants-and-do-you-have-to-pay-them-back\/","url_meta":{"origin":18946,"position":2},"title":"Who Pays for Grants and Do You Have to Pay Them Back?","author":"Nikita","date":"June 30, 2025","format":false,"excerpt":"If you're new to the world of grants, you might be wondering: what exactly are grants, who pays for them, and do you have to pay them back? The team at GrantWatch has your back! Let's break it down in simple terms. What Is a Grant? A grant is funding\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/www.grantwatch.com\/grantnews\/business\/"},"img":{"alt_text":"Who Pays for Grants and Do You Have to Pay Them Back?","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/06\/who_img-950x650_T.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/06\/who_img-950x650_T.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/06\/who_img-950x650_T.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/06\/who_img-950x650_T.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":69124,"url":"https:\/\/www.grantwatch.com\/grantnews\/grant-horror-stories-true-tales-that-still-haunt-funders\/","url_meta":{"origin":18946,"position":3},"title":"Grant Horror Stories! True Tales That Still Haunt Funders","author":"Nikita","date":"October 30, 2025","format":false,"excerpt":"At GrantWatch, we champion the incredible impact that grant funding can have, but we also recognize the importance of staying vigilant. While many people use grants to do great work, there are also stories where things went wrong - like scams or misuse of funds. These real-life examples remind both\u2026","rel":"","context":"In &quot;Grants&quot;","block_context":{"text":"Grants","link":"https:\/\/www.grantwatch.com\/grantnews\/grants\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/08\/108_img-950x650_4-1.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/08\/108_img-950x650_4-1.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/08\/108_img-950x650_4-1.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2025\/08\/108_img-950x650_4-1.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":8586,"url":"https:\/\/www.grantwatch.com\/grantnews\/vermont-northeastern-vermont-regional-hospital-receives-grant-to-reduce-underage-drinking\/","url_meta":{"origin":18946,"position":4},"title":"Northeastern Vermont Regional Hospital Receives Grant To Reduce Underage Substance Abuse","author":"Lianne Hikind","date":"January 24, 2021","format":false,"excerpt":"Vermont has a drinking problem. More specifically, Vermont has an underage substance abuse problem. And one hospital is trying to do something about that problem. Vermont, as a state has repeatedly topped the lists of substance abuse issues: especially as it relates to underage drinking. This means that something has\u2026","rel":"","context":"In &quot;Grants&quot;","block_context":{"text":"Grants","link":"https:\/\/www.grantwatch.com\/grantnews\/grants\/"},"img":{"alt_text":"v","src":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2021\/01\/northeastern-vermont-regional-hospital-office.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2021\/01\/northeastern-vermont-regional-hospital-office.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2021\/01\/northeastern-vermont-regional-hospital-office.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.grantwatch.com\/grantnews\/wp-content\/uploads\/2021\/01\/northeastern-vermont-regional-hospital-office.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":65635,"url":"https:\/\/www.grantwatch.com\/grantnews\/grants-are-giving-away-free-money-to-small-businesses\/","url_meta":{"origin":18946,"position":5},"title":"Grants Are Giving Away Free Money to Small Businesses","author":"Nikita","date":"July 30, 2025","format":false,"excerpt":"You might be wondering if grants truly mean \"free money\" for small businesses. The answer is yes, with some important details. Grants are funds provided by governments, foundations, and corporations that do not need to be repaid, making them a valuable resource for small businesses. 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