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Most organisations lose funding for reasons that have nothing to do with the merit of the work: the wrong corporate form, purposes that do not match the programme, a deadline that closed at noon, or an agreement signed without anyone reading what it obliges them to do for the next three years.
Arrange a Call →The Ontario Trillium Foundation’s Grow Grant is the one major provincial stream with an announced intake at the time of writing: applications open 7 October 2026 and close 4 November 2026 at 5:00 p.m. ET.
Who does this work. Lexaltico LLP’s government funding and grants service is led by Mitch Parmasar, who is not a lawyer and does not provide legal advice. Where a matter calls for legal advice — a funding agreement, a governance question, a repayment demand — it is handled by a lawyer at Lexaltico LLP. The firm is responsible for all of the work described on this page.
The application itself is usually not legal work. What surrounds it often is. Whether your corporation is the right applicant, whether your stated purposes support the programme’s eligibility rules, what a funding agreement obliges you to do after the money arrives, and what happens when a funder asks for it back are all questions with legal answers. Lexaltico takes the funding work as a whole: the advisory side is led by Mitch Parmasar, who is not a lawyer, and anything that turns on the law is handled by a lawyer at the firm.
Tell us briefly what is going on. A lawyer reviews every enquiry and replies within 2 business days.
A lawyer replies within 2 business days. Urgent? Call +1 416 333 6200, answered 24/7. Submitting this form does not create a solicitor-client relationship.
Very little funding is lost on the quality of the idea. It is lost on eligibility, and eligibility is decided before anyone reads the proposal. A programme restricted to incorporated non-profits will not consider an unincorporated association however good the project. A programme that funds charitable activity will not fund an organisation whose stated purposes in its articles are broader than charity. A business stream that requires a minimum revenue history will screen out a company that has not filed two years of statements.
The second place it is lost is time. Most programmes close on a fixed date and at a fixed hour, and a great many close at noon rather than at midnight — federal intakes commonly at 12:00 Eastern, provincial ones often at 5:00 p.m. An applicant working to the end of the business day on the closing date can miss it by hours. Deadlines of that kind do not move and there is no appeal from them.
The third place, and the one that costs the most, is after the money arrives. A funding agreement is a contract. It restricts what the money may be spent on, requires reporting on a schedule, often gives the funder audit rights, and usually provides for repayment if the conditions are not met. Organisations that treat the agreement as paperwork discover its terms two years later, when a reporting failure has turned a grant into a debt.
The first question on any funding matter is whether the organisation as it currently exists can hold the money. That is a question about the corporation, not about the project. An Ontario non-profit incorporated under the Not-for-Profit Corporations Act, 2010 is a different applicant from a registered charity, and a great many funders distinguish between them. Some fund only registered charities. Some fund non-profits but not charities. Some will fund an unincorporated group only through a qualified donee acting as a trustee.
Purposes matter as much as form. The objects stated in a corporation’s articles define what it is permitted to do, and a funder assessing eligibility reads them. An organisation whose articles describe general community benefit may find itself unable to demonstrate that a specific programme falls within its purposes, and amending articles takes time that a deadline rarely allows.
For businesses the equivalent questions are incorporation, control, revenue history and where the work will actually be done. Several federal programmes require Canadian incorporation and a Canadian place of business; some require a minimum number of employees, and some impose a maximum.
An application is a set of representations. The budget in it becomes the budget the funder holds you to. The activities described become the activities the agreement permits. The outcomes promised become the outcomes reported against. An application written to be persuasive rather than accurate creates obligations the organisation then has to live inside.
The practical advice is unglamorous: describe what you will actually do, budget what it will actually cost, and do not promise outcomes you cannot measure. A modest application that is delivered in full is worth more to an organisation’s funding history than an ambitious one that is delivered at seventy per cent, because funders keep records and read them at the next application.
This is the part of funding work that is unambiguously legal, and it is the part most often signed without advice. A funding agreement will usually specify the eligible uses of the money, a reporting schedule, record-keeping requirements and a retention period, the funder’s right to audit, what happens to unspent funds, what happens if the project changes, and the circumstances in which the funder may demand repayment.
Several of those terms have consequences the organisation should decide about before signing rather than after. A requirement to obtain the funder’s consent before changing the project may be reasonable or may be unworkable, depending on the work. A clause assigning intellectual property developed with the funding may matter enormously to a business and not at all to a community group. A personal guarantee from directors — occasionally seen in smaller programmes — changes the risk entirely and is worth refusing.
Read it before signing. The negotiating room is usually small, but knowing what you have agreed to is not optional, and the one thing you cannot do is discover the terms during an audit.
Most funding obligations continue after the money is spent. Reporting schedules typically run to the end of the funded period and sometimes beyond it. Record-retention clauses commonly require that supporting documents be kept for a fixed number of years and be produced on request. An organisation that has closed the project, archived the files and moved on can find itself unable to answer a routine audit.
The practical protection is a file kept from the start: the application as submitted, the agreement as signed, every approved variation, the receipts, the reports and the correspondence. That file is what turns an audit into an afternoon rather than a crisis.
Repayment demands arise for ordinary reasons more often than dramatic ones: money spent on something outside the eligible categories, a report filed late or not at all, a project that changed without approval, or an underspend that was never returned. The demand usually arrives as a letter with a deadline, and the deadline is generally short.
There is normally more to say in response than an organisation expects, and it is better said early. Whether the expenditure was in fact eligible, whether the funder approved a change in correspondence even if not by formal amendment, whether the reporting failure was cured, and whether the amount claimed is correct are all things that can be put to a funder. That is legal work and is handled by a lawyer at the firm.
We look at the organisation before we look at the programme: the corporate form, the purposes in the articles, the governance, and whether the applicant you intend to use is the applicant the funder will accept. Where that needs fixing, fixing it is the first piece of work, because no application succeeds around it.
The advisory work — identifying programmes, assessing fit, preparing and structuring applications — is led by Mitch Parmasar, who is not a lawyer. Where a question turns on the law, it is handled by a lawyer at Lexaltico LLP, and the firm is responsible for all of it. Fees are quoted and agreed in writing before any work begins.
Programme details verified 23 September 2026 against the funder’s own published pages. Funding programmes change their terms, their amounts and their intake dates without notice, and third-party summaries are frequently out of date. Confirm current terms with the funder before relying on anything here.
Our lawyers offer an introductory call for most matters. Call, email, or book online. Do not sign anything before speaking with us.
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Lexaltico LLP
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