Grant management is a critical function for nonprofits in achieving their missions. The key to doing this effectively lies in the ability to accurately and efficiently track data for reporting and management purposes. Without the right tools and strategies, however, this is much easier said than done.
Grant recipients spend up to 40% of their resources on administrative requirements alone. By leveraging advanced technology to standardize and streamline the process, this burden can be substantially reduced.
Overcome application and tracking challenges with grant management software (GMS) and discover best practices for choosing the right platform for your organization.
TRADITIONAL GRANT MANAGEMENT: AN EXERCISE IN FUTILITY
Conventional methods for managing the grant process have proven to be inefficient and error prone. Ever-changing reporting requirements, budgetary concerns, and the demand for greater transparency further complicate things. Here are a few common issues grant seekers must navigate:
- Manual Workflows: Relying on manual methods for things like data entry, document filing, and reporting is time consuming and prone to costly human error. It also limits grantees' ability to effectively analyze and utilize data.
- Lack of Centralization: There are many moving parts in grant management—particularly when dealing with multiple grants that have different objectives, timelines, and budgets. Additionally, when information is scattered across many documents and systems, it results in accessibility and collaboration issues.
- Ineffective Communication: The grant management process involves a number of different individuals and teams, all of whom must work together cohesively to achieve shared goals. Gaps or lags in communication can lead to delays, misunderstandings, and missed opportunities.
- Compliance: Keeping up with complex regulatory requirements, stringent reporting standards, and tight deadlines can be overwhelming. Failure to remain compliant can jeopardize funding and even result in potential legal issues.
- Tracking and Reporting: Tracking and segregating data by grant can be labor intensive and difficult due to reporting requirements and system limitations. Reporting to various funders, each with their own specific requirements, can also pose a challenge.
TECHNOLOGY: A GAME-CHANGER FOR GRANT SEEKERS
The right grant management software, fully integrated with other essential tools and platforms, can help nonprofits and other grant seekers overcome all the challenges outlined above.
AUTOMATION
The use of automation, AI, and other advanced technologies can enhance data collection and reporting, ensuring accuracy and compliance, and supporting the management of multiple grants at one time. Additionally, automating repetitive tasks frees up staff to focus on more strategic initiatives.
CENTRALIZED DATA
Cloud-based systems provide a single source of truth for all grant information, enhancing accessibility. A centralized system can also facilitate improved collaboration and document sharing within grant teams, making it easier to keep everything organized and visible.
ENHANCED COMMUNICATION
Integrated tools facilitate seamless communication amongst team members and stakeholders. GMS solutions often offer features for messaging, document sharing, and enhanced collaboration, which can optimize the process and ensure all data and documents are easily accessible.
COMPLIANCE AND REPORTING
Automated checks and reporting tools ensure timely and accurate grant submissions and reduce the risk of non-compliance. Grant management software can also help nonprofits meet audit deadlines and requirements.
REAL-TIME TRACKING
Up-to-date dashboards and data analytics provide insights into grant status for informed decision-making. Utilizing grant management technology also improves timekeeping and streamlines the allocation process, saving a lot of time and making approvals and audits much easier.
KEY TECHNOLOGIES FOR STREAMLINING GRANT MANAGEMENT
There are several different tools and technologies that make up an effective grant management strategy. Here are a few pivotal ones:
- Grant Management Software (GMS): Specialized platforms like Fluxx and Salesforce Nonprofit Cloud enable grant seekers to efficiently manage the entire grant lifecycle.
- Cloud Computing: Cloud-based solutions ensure data accessibility and collaboration and reduce IT infrastructure needs. Most GMS systems are cloud-based. This applies to accounting software,enterprise resource planning(ERP) and customer relationship management (CRM) systems as well.
- Automation and Artificial Intelligence (AI): AI can be used to analyze grant opportunities, predict success rates, and match grants to suitable projects. Robotic process automation (RPA) platforms, like UiPath, can automate manual data entry tasks.
- Data Analytics: Advanced tools track performance metrics, identify trends, and generate insightful reports. Tools like Sage Intacct offer multiple aspects for slicing and dicing data, making reporting and analytics more convenient, and reducing the risk of human error.
- Collaboration Tools: Platforms like Slack, Microsoft Teams, and Trello enhance team communication and project management.
- Customer Relationship Management (CRM) Systems: CRMs like Salesforce and Zoho CRM manage relationships with funders, track interactions, and facilitate effective communication. CRM systems also aid in program reporting and the grant approval process.
- Finance and Accounting: Timekeeping and expense management software helps speed up grant management processes, improve data accuracy, and streamline manual processes like allocations and time sheets. Platforms like Sage Intacct and BILL.com can save time with features like invoice code tracking.
These tools and technologies aren't exclusive to nonprofits. While for-profits may not be held to the same strict standards as nonprofits, they still have expense management and reporting responsibilities. Any organization that receives grants can benefit greatly from a comprehensive grant management strategy and software solution setup.
BEST PRACTICES IN IMPLEMENTING GRANT MANAGEMENT TECHNOLOGY
As the grant management process becomes increasingly digitized, integrating and implementing these technologies can be challenging. Data migration complexities, compatibility issues, and the need to keep stakeholders informed can disrupt the grant management workflow. Furthermore, keeping systems up to date is fundamental to optimal functionality and data security.
Before deciding on a technology solution, grant seekers must fully understand their specific needs, including grant complexity, reporting requirements, budgetary constraints, and the capability to handle multi-year and cross-fiscal year grants. It's important to look at the big picture and not just the ERP system, to avoid implementing systems that don't talk to each other.
Additionally, when migrating from an existing data collection tool to a new system, it's crucial to consider the amount of data needed for active grants to ensure a smooth transition. To maximize technological benefit while minimizing potential disruptions, here's what we recommend:
Step 1 – Assess Needs: Identify specific challenges and requirements regarding grant management.
Step 2 – Choose the Right Tools: Select technology solutions that are aligned with your organization's goals and budget while also integrating well together to streamline and increase efficiencies.
Step 3 – Plan Implementation: Develop a comprehensive roadmap, complete with detailed timelines, responsibilities, and training needs.
Step 4 – Data Migration: Ensure a smooth transition by accurately and securely migrating existing data to the new system.
Step 5 – Train Staff: Provide comprehensive training to ensure all users are proficient in the new technology.
Step 6 – Monitor and Optimize: Continuously monitor system performance and make necessary adjustments to maximize efficiency.
WHY YOU NEED MARCUM IN YOUR CORNER
Fortunately, when it comes to grant management, there is no need to reinvent the wheel. Marcum Technology, working collaboratively with Marcum LLP, brings unprecedented expertise in accounting and financial management, ensuring the technology implemented aligns with your goals and compliance requirements. Simply put, accounting is in our DNA.
We can also provide deep insight into exactly what grantors are looking for and how to set up the systems and strategies required to meet those needs.
Our team is well-versed and knowledgeable in a variety of technologies designed specifically for grant management, including ERPs, CRMs, RPAs, and more. We can help you assess your organization's needs, narrow down your options, implement and train employees, and provide ongoing support.
With over 30 years of experience serving nonprofit and social sector organizations, along with 20 years of experience implementing complex financial systems for nonprofit organizations, Marcum can help you future-proof your grant management strategy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.