Grant funding can be a game-changer for nonprofits, providing crucial financial support to advance missions and deliver valuable services.
Grant funding is more than just getting money—it’s about proper management throughout the process to ensure it’s used effectively and responsibly. With cloud-based accounting solutions like Sage Intacct, nonprofits can simplify their work, accurately track spending, and improve collaboration. This helps increase the chances of getting future funding by building strong relationships with grantors.
In this article, we’ll share five ways your nonprofit can maximize grant funding through better management.
1. Gain an understanding of the grant’s requirements.
When the grant is awarded, establish a solid foundation for effective management:
- Centralize all pertinent information about the grant in your nonprofit financial management system.
- Determine key facets such as the amount of the grant, what date it begins and ends, grantor contacts, who is managing the grant within your organization, and business rules governing reporting requirements, audit requirements, etc.
- Development and finance teams should work together throughout the grant lifecycle, so giving both teams access to cloud-based grant tracking capabilities streamlines this workflow and enhances collaboration.
Sage Intacct helps nonprofits manage grants efficiently and accurately by centralizing grant records and reports, making it easy to track the associated tasks and expenses.
2. Stay abreast of grant financials.
Throughout the grant period, it’s vital to monitor expenses, budget, and cash flow carefully:
- Most grants reimburse expenditures rather than providing payment upfront, so make sure all purchases will qualify for reimbursement.
- Carefully track spending against the budget and milestones to ensure efficient use of funds.
- Keep detailed financial records, including invoices, receipts, and all expenditures, as accurate financial management is essential for accountability and future funding opportunities.
In the grant funding landscape, it’s easy to see why having immediate visibility into revenue, spending, and budgets is so essential. Cloud-based nonprofit accounting solutions like Sage Intacct enable nonprofits to readily see grant revenues and expenses in real time, from anywhere in the world.
3. Automate reporting.
Timely and accurate reporting is key to maintaining transparency and fostering trust with grantors:
- Establish a workflow for producing accurate reports in a timely manner.
- Devise ways to quickly perform ad hoc reporting requests from grantors in order to respond to additional questions they may have.
- Don’t rely on spreadsheets for reporting, as they can be time-consuming, unwieldy, and prone to errors.
Fortunately, cloud accounting and grant tracking solutions can streamline report preparation, making it easy to parse data and answer impromptu questions that may arise.
4. Enhance internal collaboration.
Effective grant management requires collaboration between development, finance, and program teams. Cloud-based solutions like Sage Intacct make it easier for departments to instantly access and share grant information and improve teamwork:
- All team members can view and update grant details, ensuring everyone has the most up-to-date information at their fingertips.
- With everyone working from the same platform, it’s easier to communicate about budget updates, milestones, and reporting requirements without the need for emails or meetings.
- Real-time access to financial data and project progress enables faster, more informed decisions about how to allocate resources and meet grant objectives.
This level of collaboration helps maximize the impact of grant funding, ensuring that funds are managed effectively and aligned with organizational goals.
5. Ensure auditing ease and transparency.
In addition to providing regular reporting and maintaining a positive relationship with grantors, outside audits are another avenue to deliver transparency and gain credibility. A clean audit helps establish trust with board members, grantors, and patrons. While audits can be costly, there are ways to increase efficiency to save time and money:
- The audit process can be significantly streamlined by using cloud accounting software for nonprofits like Sage Intacct.
- Many systems allow users to provide secure, read-only access to the auditor, so they can find reports quickly and drill down on transaction details.
- Sage Intacct enables users to create a customized dashboard for auditors, consolidating key reports, addressing common audit queries, and maintaining a detailed record of each interaction for greater transparency and efficiency.
Sage Intacct is there to maximize your grant funding efforts and support your mission success. Intuitive Business Concepts implements Sage Intacct’s cloud accounting products across nonprofit organizations of all types and sizes. Ready to get started? Contact us today!
About IBC: At IBC, we have a deep understanding of the critical business needs and processes specific to associations, non-profits, and unions. We ‘get’ your culture, your goals, and what drives you, too. Focused exclusively on and dedicated to delivering the most effective AMS, LMS, and Cloud Financial Software for our clients, we’re well-versed in identifying and applying the integration techniques that will save you time and money. Since 2001, our cutting-edge products, unparalleled responsiveness, and award-winning services have helped organizations like yours increase their operational and financial performance by leveraging best practices and proven solutions. For more information about IBC, please visit the website at www.ibconcepts.com or call 443.603.0215.
