Nonprofit organizations rely on grants to fund their mission and support their activities. Without the ability to win and keep grants, many nonprofits would not meet their yearly budget requirements and risk having to shut their doors to the community. Maintaining compliance with nonprofit grants, therefore, is a huge responsibility and necessity. Both federal and private grants come with their fair share of regulations and requirements, and nonprofits are expected to strictly adhere to these requirements if they wish to keep the funds.
Fortunately, grant compliance is fairly simple if you have the right tools and processes in place. Effective grant management can go a long way in helping secure your grants, as can having grant management software for nonprofit organizations in place. The effectiveness of your software and grant management processes – however – matters; for your software systems and processes can make or break your grant compliance.
If your grant management software and processes are not fully optimized for grant compliance reporting, you could be making your job harder than it has to be and jeopardizing your compliance. Fully optimized grant management software can help you track and manage grant funds, as well as deliver accurate compliance reports to your funders on a regular and timely basis.
If you don’t have the proper grant management processes and tools in place, the grant management process can be difficult and require an extensive amount of time and effort. 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 supporting your organization. Not to mention that if this process is not carried out accurately, you could risk not only losing your much needed grant but also your good standing in the eyes of future funders.
Aligning your grant management processes and tools can help ensure that your organization remains in good standing with your funders, as well as improve your chances of winning more grants in the future. It’s important that you design your grant management processes and optimize your grant management systems to make grant compliance reporting automatic. You don’t want to risk losing your grant or your good standing due to forgetfulness. By simply automating your reports, you can guarantee that you have the information you need when you need it.
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:
- Understand 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.
- Invest in grant management software for nonprofit organizations. Grant management software will make compliance so much easier, but if you can’t invest in the software at this time, 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.
- Verify that your grant management system 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 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. We will thoroughly evaluate your nonprofit’s needs and align you with the proper software and processes to ensure your success for current and future grants.