What Financial Information Do Funders Expect to See

Introduction

Funders want to support organisations they can trust. They need to see that your charity or project is financially responsible, well managed, and capable of delivering the outcomes you promise. The financial information you provide gives them confidence that their grant will be used wisely and that your organisation can continue operating after the funding period ends.

Whether you are applying for a small community grant or a large foundation award, preparing your financial documents carefully can make the difference between success and rejection.

Why financial information matters

Funders use financial information to assess:

The financial health and stability of your organisation.

How realistic your project budget is.

Whether you can manage and account for public or donor money responsibly.

How well your funding request aligns with your overall financial position.

Transparent and well-organised financial data shows that your charity has good governance and that trustees understand their financial duties.

Key financial information funders expect to see

1. Annual accounts

Most funders ask to see your most recent annual accounts, which summarise your income, spending, and reserves. For registered charities, this includes:

The Statement of Financial Activities (SOFA).

The balance sheet showing assets and liabilities.

Notes explaining how income and expenditure are broken down.

Your independent examiner’s or auditor’s report (if applicable).

These accounts give funders a snapshot of your organisation’s financial position. They help assess whether you have enough reserves to manage cash flow, but not so much that you appear not to need external funding.

If your charity is small and does not produce formal accounts, a simple income and expenditure statement with bank statements may suffice for minor grants.

2. Project budget

Every application should include a detailed project budget showing how the grant will be used. Funders want to see that your costs are realistic and directly linked to your project activities.

Your project budget should include:

Income: expected funding sources, including your own contributions or match funding.

Expenditure: a breakdown of all costs such as staff, materials, travel, and overheads.

Timeframe: when money will be spent and for what purpose.

Where possible, provide quotes or cost estimates to support your figures. Funders appreciate precision and evidence rather than round numbers or guesses.

3. Cash flow forecast

A cash flow forecast helps demonstrate that you understand how money moves through your organisation and that you can manage grant funds responsibly.

A good forecast will:

Show expected income and expenditure over the coming months.

Identify any potential shortfalls or timing issues.

Indicate how you will manage surpluses or deficits.

Funders like to see that your organisation has sufficient reserves or contingency plans to deal with unexpected costs or delays in grant payments.

4. Evidence of financial controls

Funders want assurance that your charity has proper systems to manage and monitor money. You may be asked to describe your financial controls, such as:

Who authorises spending and approves payments.

How often bank reconciliations are carried out.

What procedures exist for managing cash and donations.

How trustees oversee financial reporting.

Including this information shows that your charity takes governance seriously and has safeguards to prevent misuse of funds.

5. Recent management accounts

Some funders, particularly for larger grants, request management accounts—internal reports that show financial performance during the year. These may include income and expenditure to date, comparison with the budget, and variance explanations.

Providing up-to-date figures helps funders understand your current financial position beyond last year’s accounts. It also shows that your trustees and managers are monitoring finances regularly.

6. Reserves policy

Your reserves policy explains how much money your organisation keeps in reserve and why. Funders use this to assess whether your organisation is financially sustainable.

If you have large reserves, you may need to explain why you still need funding. If your reserves are low, show that you have plans to build financial stability in the long term.

Being honest about your reserves reassures funders that you are transparent and proactive in managing risk.

7. Evidence of co-funding or match funding

Many funders prefer to support projects that have multiple income streams rather than relying entirely on one grant. If you have already secured part of the funding or expect contributions from other sources, include evidence such as:

Letters of commitment from other funders.

Confirmation of donations or pledges.

Income from trading or fundraising events.

Showing match funding demonstrates that others believe in your project and that it has broad financial support.

8. Financial sustainability plan

Funders often ask how your organisation will sustain its work once the grant ends. You can include:

Future income sources such as donations, contracts, or new grants.

Plans to develop earned income or social enterprise activities.

Cost-saving measures or efficiency improvements.

This shows funders that your charity is thinking ahead and that the impact of their investment will last beyond the grant period.

9. Policies and governance documents

Funders may also request documents that prove your organisation is well managed and compliant. These could include:

A financial procedures policy.

A recent risk assessment.

Trustee meeting minutes approving the grant application.

Your charity registration or constitution.

Having these ready makes your application more professional and saves time later if the funder asks for further details.

How to present financial information clearly

Use clear tables or spreadsheets to show budgets and forecasts.

Label figures consistently (for example, always use “£” and avoid mixing formats).

Double-check that totals add up correctly.

Include brief notes explaining any assumptions.

Avoid jargon or overly technical accounting terms.

Presenting information neatly and accurately gives funders confidence in your professionalism.

Common mistakes to avoid

Submitting outdated or incomplete accounts.

Providing unrealistic budgets that underestimate costs.

Forgetting to explain how the grant fits with your overall finances.

Not showing evidence of financial controls or governance.

Failing to link the budget to your project activities.

Avoiding these mistakes makes your application clearer and more credible.

Conclusion

Funders expect to see accurate, transparent, and well-organised financial information that demonstrates both need and competence. By providing clear accounts, realistic budgets, strong financial controls, and evidence of sustainability, your charity can show funders that it is a safe and effective investment.

Good financial presentation not only increases your chances of securing funding but also strengthens your organisation’s overall governance and reputation. When your numbers tell a consistent, confident story, funders can see exactly how their support will make a difference.