Beyond Funding: Why Grant Management Truly Matters

For many organizations, grants open doors to exciting possibilities and help bring dreams of positive change to life. But let's face it: effectively managing these grants throughout their lifecycle can feel like navigating a complex maze. However, effective grant management is paramount and necessary for any organization reliant on external funding. Grants represent more than just financial resources; they are a commitment to a donor's vision and a testament to an organization's capacity to deliver on its promises. 

The grant lifecycle is an all-encompassing process, and it needs to be properly managed for all parties involved to be successful. Consider the grant award to be a partnership between the funder and the organization. The steps of this partnership include completing a goal that is beneficial to the organization and the community it serves. Because grants are part of nonprofits' diversified funding streams, systems must be in place to manage that funding properly. In this article, we will explore why making it a top priority is essential for any organization relying on grant funding to fulfill its mission. You will discover how proper grant management can transform potential headaches into opportunities for growth and impact. 

What is Grant Management?

Per Omnistar (2022), grant management is the administrative work and process that goes into accessing and fulfilling the requirements of a grant. Grants provide organizations with funding to achieve the overall goal of supporting communities and various causes. An organization needs to be able to successfully manage and oversee grants and the responsibilities involved throughout the grant lifecycle. Applying for a grant requires that established criteria and guidelines be met throughout the entire process. More often than not, management is required for multiple grants simultaneously! So, where do you start?

When should it begin? 

You're right! At the beginning. The organization should already have policies and procedures in place before starting the grant application. At a minimum, they should include governance, risk management, systems, continuous program monitoring and evaluation, and financial management. As Dr. Miranda Wojciechowski said (2023), "The grant proposal and its many components, such as the workplan, objectives, evaluation metrics, and budget, will serve as the blueprint for measuring post-award progress and set important perimeters for project completion." By laying this groundwork early, organizations set themselves up for smoother grant management and an increased likelihood of achieving their project goals.

Why It Truly Matters

With so many moving parts throughout the grant life cycle, an organization must have the systems in place so nothing gets overlooked. Each part of the grant lifecycle has multiple steps. The grantmaker must create grant applications, evaluate proposals, make grant announcements, and distribute funds. The grantee must apply for funding, manage the funds received, deliver programming, and report outcomes regarding that same funding. 

Prioritizing robust grant management ensures that funds are utilized strictly according to the grantor's stipulations, preventing misuse, ensuring regulatory compliance, and safeguarding the organization's reputation. Without meticulous oversight, there's a significant risk of financial penalties, audits, and irreparable damage to an organization's credibility. Strong grant management is crucial for cultivating and preserving valuable relationships with funders. Grantors invest money and trust in grantee organizations. Demonstrating impeccable financial stewardship, timely reporting, and clear communication builds confidence, fostering a positive track record that can lead to continued support and new opportunities. Conversely, a history of mismanagement, missed deadlines, or unclear reporting can quickly erode trust, jeopardizing future funding prospects and limiting an organization's ability to achieve its mission.

Why It's Essential

Grant management is essential because it ensures that grant funds are used effectively, transparently, and in compliance with all the funder's requirements, ultimately leading to the achievement of project goals and maintaining the organization's reputation and credibility for future funding opportunities. Per Relle (2024) of The Center for Effective Philanthropy, here are six valuable reasons grants management is essential:

• Maintaining a single source of reliable data to which staff across all funder teams — finance, marketing and communications, learning and evaluation, programs, and others — can refer.
• Communicating consistently with grantees across various departments and initiatives.
• Ensuring that program staff can not only reach the grantees they regularly work with, but can connect grantees to one another, or equitably offer resources relevant to grantees working in a particular area of work.
• Institutionalizing knowledge so that, when there is inevitable staff turnover, there are robust records of information about the grant with minimal lapses in communication.
• Championing efforts to streamline grant processes to be more efficient and valuable for grantees and staff members alike.
• Leading data collection of grantee demographics, which can be used in diversity, equity, and inclusion efforts, equity analyses related to a funder's portfolio, strategy development, and more.

And Finally….Don't Forget The People!

With proper grant management comes one of the key components: the people. Communication is critical to the success of any relationship. When considering the grant management process, it's essential that all teams, from programs, finance, and development to HR and management, realize their efforts make a difference in whether the process succeeds or fails. Here are 5 tips to follow for successful relationship management:

1. Try not to make last-minute requests that will stress out your colleague(s). 
2. Conduct a quick quarterly grant check-in meeting or surveys to check on deliverables and ensure everything is on track. 
3. Provide training opportunities for team members involved in grant management. This ensures that everyone is knowledgeable about the grant process, compliance requirements, and reporting standards. 
4. Encourage team members to build relationships. Network and collaborate outside of the grant project (if possible). 
5. Establish a feedback loop where team members can provide input on processes, improvements, and challenges. This continuous feedback can lead to refinements in grant management practices.

Effective grant management is fundamental for an organization's long-term sustainability and strategic growth. Funders will not keep supporting organizations if they don't believe that their funds are being properly used. Organizations gain invaluable data for learning, adapting, and refining their strategies by meticulously tracking grant performance and outcomes. This enables them to articulate their impact compellingly to future donors, diversify their funding streams, and scale successful programs. A well-managed grant portfolio signals organizational maturity and strategic foresight, positioning the nonprofit for sustained mission delivery and increased influence within its community and sector. The benefits of a successful grant management program are influenced by core processes and the people involved in completing them. An effective and efficient grant management system will allow you to make better decisions and focus on what really matters - the communities you serve.

Resources

Omnistar. (2022, June 15). Why is Grant Management Important? Retrieved from https://www.omnistar.cloud/insights/why-is-grant-management-important

Relle, Emma. (2024, May 21). Prioritizing Grants Management: An Unsung Key to Effective Funding. Retrieved from the Center for Effective Philanthrophy, https://bit.ly/3TLsyi0

Wojciechowski, M. (2023, August 15). From Pursuit to Post-Award Compliance: Successful Project Design for Full Federal Grant Lifecycle. Retrieved from https://grantprofessionals.org/news/news.asp?id=648409