Nonprofit organizations around the nation depend on grants to support their mission and operational budget. Grants are a necessary part in nonprofit funding; without them, many nonprofits would not be able to carry out their mission or provide necessary services for their communities. In order to effectively manage these funds, nonprofit organizations need to have a well thought-out grant management plan in place. Both private and federal grants come with their fair share of regulations and requirements and – in order to remain in full compliance – you need to ensure that your nonprofit is doing everything it can to manage your grants effectively.
Your software systems and processes can make or break your grant compliance. If your grant management systems and processes are not fully optimized for grant compliance reporting, you could be making your job harder than it has to be. Grant management software can help you track and manage grant funds, as well as deliver accurate grant compliance reports to your funders on a timely basis.
The grant management process can be difficult and require an extensive amount of work and time without the proper grant management tools and processes in place. Without grant management software, nonprofits have to manually gather, organize, validate and present grant information to each grant funder. This can turn into a lengthy and time-consuming process, especially when you have multiple funders. Not to mention that if this process is not carried out accurately, you could risk not only losing your grant but also your good standing in the eyes of funders.
By thoroughly aligning your grant management tools and processes, you ensure that your organization remains in good standing and gets to keep the funds that have been granted. It’s important to design your grant management processes and optimize your grant management software systems to make grant compliance reporting automatic. You don’t want to risk losing your grant or your good standing.
It’s important to re-examine your grant management processes and software systems every few months to ensure that you have the proper tools in place to meet grant compliance. Make sure that you are following industry standards and best practices in all of your grant tracking and reporting processes. Keep the following tips in mind as you align your grant management processes and systems with grant compliance requirements:
- If you don’t have grant management software in place, at least make sure that your nonprofit financial management system is capable of capturing grant-related data at the required level of reporting to ensure grant compliance.
- Gain an understanding of your grant and grant reporting requirements. Make sure you fully understand the grant conditions, data gathering and reporting requirements for each grant. Some grants may have different requirements than others; make sure you know the distinction between each.
- Verify that your financial management system (or grant management system if you have one) is capable of tracking your finances at a grant level, including the budget to actual comparisons, without significant data manipulation.
- Make sure your systems can report on the funder’s fiscal calendar.
By fully aligning your grant management processes and systems (and optimizing them for full grant compliance), you can ensure that you remain in good standing with your grant funders. Grant management software, such as Abila Grant Management (formerly Sage Grant Management) will facilitate the proper grant budgeting, tracking, and reporting so you don’t have to manage it manually. Grant management software will also free your staff of time-consuming reporting and financial tracking so they can focus on more mission-related tasks.
If your organization could use grant management software to ensure grant compliance, give us a call today at (503) 648-9051. We will thoroughly evaluate your nonprofit’s need and align you with the proper systems and processes to ensure your success for current and future grants.