Making the Grant Cycle Work for Your Organization

Nonprofit leaders have a lot on their plates, including serving members and the community, motivating volunteers, complying with state and federal regulations, and creating and monitoring accounting processes. Since many organizations rely on grant revenue to fund their missions, managing one, two, or several grants becomes a time-consuming, overwhelming task that can’t be avoided.

While managing grants can’t be avoided, they don’t have to be daunting. Perhaps you’ve implemented some tips from my Grant Management Checklist, but you’re still feeling like there are missing pieces. In this article, we review the life cycle of the grant process and take a deeper look at its impact on your organization.

The grant lifecycle

Many experts talk about the three phases of grants: pre-award, award, and post-award. While that is an excellent description of the process grant-seekers endure to receive funding, there is more to it. Each of those three phases is made up of multiple steps and required actions to execute an effective grant management process. To fully understand how to manage multiple grants, consider the six phases of the nonprofit grant lifecycle.

Identify opportunities

Identifying grant opportunities begins the lifecycle of grant management. While it is not uncommon for nonprofits to receive grants from foundations or agencies they’ve previously worked with or found via word of mouth, it is more common for grant-seekers to turn to the internet and make use of a grant database. 

Build relationships

After identifying a few grants that may be a good fit for your entity, it’s a great idea to try to make connections. This is not always an option, but some private, local foundations list a contact person that can help your team prepare for the grant application. Plus, it never hurts to get your organization’s name and mission in the funder’s thoughts. 

Apply

The application process part of grant management is extremely important because it ultimately decides whether your nonprofit will receive the funding. Be sure to review any instructions and guidelines carefully before constructing a proposal, and always make sure you’ll be able to convince the Grantmaker how your organization’s mission can be fueled with the funds. 

Get funded

Hopefully, your application is accepted, and you receive funds. If it is not, go back to phase one and start the process again. The experience you gained through the first application process will only make it easier to succeed in future attempts.  If your nonprofit was approved for the funds, be sure to review your organization’s grant management process before taking the next steps.  

Grant management

Once the organization has received funding, it’s time to implement the action phases of managing a grant. The first step to a smooth process is to thoroughly review all documents so you fully understand the type of grant awarded and any reporting requirements. Working with an experienced nonprofit accounting team is recommended as understanding the different types of restricted funds can get complicated.

Report

Each grant specifies reporting requirements. It is common for the grant seeker to need to send periodic reports to the foundation or agency to show that progress is being made in the direction of your organization’s purpose. Even for funds that don’t require frequent progress reports, a final report is typically needed. Final reports can be compiled using the software you’re already using to manage grants, or by working with an outsourced accounting service. 

Final Thoughts

Even broken down, grant management is a complex topic, especially if you’re dealing with multiple grants. The good news: there is help.

At Financially Tone, we are experts in each phase of the grant lifecycle, even the messy parts like not-for-profit accounting and reporting. Schedule a chat with us today to hear more about the value we can bring to your nonprofit.