We all can agree that applying for and securing a grant is a good feeling. It represents the culmination of a lot of hard work and is the lifeblood of nonprofits striving to do more good in the world.
But it’s important to remember that winning grant funding isn’t the end of anything. Instead, it marks the beginning of a process that’s just as important to the future of your organization – effective grant management.
Think of it as the due diligence that comes with receiving grant funding. Properly executing the essential management, reporting, and compliance steps that follow is crucial in order to show funders that the grants they award are being put toward their intended use, are creating sustainable changes, and are following all stipulated requirements.
Effectively managing your grants and properly reporting back to funders not only helps them keep their financial records in order, it’s also an important step to winning future funding by demonstrating that yours is an organization that can be trusted.
Successful grant management for your nonprofit involves 7 key steps:
- Identify resources and clearly define roles.
Start by determining what resources and tools you need, and who will handle which aspects of the grant management process. Ask yourself:
- Do you need any new tools for tracking expenses or managing the program?
- Does your team include voices from leadership, fundraising, programming, finance, human resources, and any other departments that need to be involved?
- Does each member of the team understand their role in executing, tracking, and reporting on how the grant is being used?
Once you’ve answered these questions, clearly define your needs and the responsibilities of each team member at every phase of the grant management process.
- Create documentation for tracking grants.
Create a comprehensive list of any documentation that your team will need in order to effectively handle their responsibilities throughout the grant management process. This can include configuring any special projects or views in your project management, accounting, or database software.
- Review all relevant grant requirements.
Take whatever time is necessary to review all the requirements associated with your grant. And make sure your fellow team members can easily access and understand these requirements as well.
- Lay out a comprehensive schedule for your grant.
Create a comprehensive grant schedule by combining your team assignment notes from Step 1 and grant requirements from Step 3 with your broader programming plans. This schedule should outline a complete picture of when, how, and by whom the different parts of your grant management program will be executed and reported. Again, make sure that all team members involved in managing the grant can access and understand this schedule.
- Understand how to record grant funds.
Before using any of your grant funding or incurring expenses, make sure your organization’s finance team is ready to properly record and report the funds in accordance with the grant’s requirements. Depending on the type of funding you’ve received, you’ll either record incoming funds as you receive them or track program-related expenses in real-time to be reimbursed later. Some grants have additional reporting protocols or rules, so always take the time to fully understand what reporting is required with your grant.
Additional grant accounting tips:
- Use budget-to-actual reporting to give your team a consistent view of how efficiently you’re utilizing awarded funds.
- Develop or follow especially strict reporting protocols for multi-year grants.
- Be prepared for financial audits, particularly when reporting on government grants.
- Report on your progress internally.
Some funders require periodic reports and updates, while others don’t. But even if they don’t, you should still establish regular internal reports from the entire grant management team. These internal reports will keep everyone informed on updates, changes, and progress made towards goals. Make sure to include the dates for these periodic internal reports in your grant schedule from Step 4.
- Double-check your grant closeout plan.
Finally, review and plan for any stated requirements around final reporting for your grant. This can include things like:
- What defines the end of your grant?
- How will you measure or gauge success?
- Which reports or documents will you need?
Determine these specifics in advance so that this final stretch runs as smoothly as possible.
Although the grant management process technically kicks off when you’re awarded a grant, you should ideally prepare as much as possible in advance. Recruiting a grant programming and management team, outlining their individual responsibilities, and auditing your documentation and technology for readiness are all steps that you can (and should) take early.
Going the Extra Mile: Additional Grant Management Best Practices
Beyond mastering these essentials, consider these additional practices to distinguish your organization:
- Actively Track Your Grant History: Developing a robust record of past grant management efforts enriches your team’s knowledge and preparation for future grants.
- Eliminate Internal Silos: Ensure seamless communication and collaboration across departments for a unified grant management strategy.
- Invest in the Right Tools: Utilizing dedicated software for tracking and managing grants can streamline processes and enhance efficiency.
- Organize from the Start: An organized approach from the initial stages of grant seeking can significantly benefit the management phase, making the journey from award to impact both seamless and successful.
Embracing these steps and practices isn’t just about fulfilling obligations; it’s about reinforcing the trust between your nonprofit and its funders, ensuring that every awarded grant advances your mission and amplifies the impact you make in the world.
