Home Fundraising Survival within the New Age of Grant Administration |

Survival within the New Age of Grant Administration |

Survival within the New Age of Grant Administration |


I’m not afraid to confess that I’m a giant fan of these actuality tv survival reveals.

Not those with the faux contests and contrived conflicts, however the ones that pit you towards the climate, the wildlife, and the pure surroundings.

It’s simply the contestants towards the onerous, merciless world, and it both brings out the perfect or the worst in individuals. It’s tough to be detached to marauding bears, incessant insect stings, and the dearth of meals and water. Whether or not the present individuals really feel prefer it or not, they’re required to carry out each day duties—like maintaining the hearth going and boiling water—that aren’t glamorous or enjoyable however maintain them alive.

Whereas most nonprofits aren’t gathering sticks to construct a fireplace, survival does usually rely upon the small, unglamourous duties of analysis, communication, and reporting to maintain your funding streams alive. Particularly with the give attention to transparency and maintaining stakeholders aligned on progress, funding companies and donors have elevated expectations for threat administration, efficiency administration, and monetary administration.

Profitable grant administration to your nonprofit, basis, or federal grant recipient is determined by doing the small duties nicely, similar to inside controls and threat administration, whereas additionally understanding what alternatives (and threats) are forward.

Three Finest Practices for Profitable Grant Administration


1. Inside controls should not only for finance individuals anymore.

For non-finance people, they could have heard the time period “inside controls” in faculty or in a presentation from the accounting division. Typically, the relevance of inside controls to nonprofit packages had been restricted at finest. Nevertheless, through the years, federal grant laws have moved inside controls from the audit steering into the executive necessities, making it extra of a precedence throughout the group.

Opposite to what you would possibly assume, inside controls should not about writing a bunch of coverage or process paperwork and sticking them in a shared drive to collect digital mud. As an alternative, inside controls are a dwelling course of that exists to make sure that what you say you’ll do occurs as anticipated, and when it doesn’t, this deviation is detected and corrected. All areas of the group, together with packages, are anticipated to be companions in making use of inside controls all through the grant lifecycle. For organizations the place this isn’t already occurring, finance professionals want to guide the cost. The crew should assessment and talk the significance of those ideas and their sensible purposes for packages workers, human sources, and IT.


2. Threat Administration begins earlier than funding.

When you lived by way of the American Restoration and Reinvestment Act (ARRA), you recognize that generally grant cash can transfer by way of the pipeline with little oversight. It was pretty frequent for grant recipients to spend the majority of their funding earlier than anybody inquired if the funds had been getting used as meant. Positive, there might have been a lot of curiosity in this system’s targets, however when it got here to how the cash was being spent? Not a lot.

Enter the brand new age of accountability with pre-award federal grant necessities for threat and integrity to be assessed earlier than the primary greenback goes out the door. Moreover, because the challenge strikes into the post-award section, funding companies and prime recipients have new necessities to handle threat over the lifetime of the award. This may take many types, together with the formalization of sub-recipient monitoring plans to lower the probability of mismanagement. Whereas this will create a further burden for a lot of grant recipients, the idea of reviewing a company’s suitability to execute the phrases and situations of the federal award earlier than spending ought to result in a discount in waste, fraud, and abuse of taxpayer funds.


3. Grant administration programs are right here for the lengthy haul.

How would you describe your grant administration programs: a pile of kindling that must be stoked usually to maintain your fireplace, or a gas-powered range that makes it simple to handle your survival duties? A humorous factor occurred when regulators reviewed the federal grant laws: necessities that had at all times been there received a contemporary look. Abruptly, written process necessities which have existed for years had been reconsidered. Likewise, grant administration programs that had been addressed within the outdated grant steering have taken on new life. Auditors are actually taking a look at issues like:

  • Are you able to monitor the timing of the funds acquired and expenditures by the person award?
  • Can you present cheap assurance that the funds had been used as meant, similar to eligible individuals?
  • Can you make sure that unallowable prices didn’t discover their approach right into a reimbursement request?

Whether or not you might be utilizing subtle grants administration software program or an Excel® spreadsheet to assist your grants, the important thing factors stay the identical: do you’ve a system—a gaggle of elements organized for a typical function—that meets the brand new necessities?

Easy methods to Put together for Survival: Grant Administration Sources


Step One: What sources do you have already got?

Any survival professional will inform you that when you end up in a tough state of affairs, begin by assessing your obtainable sources. Equally, step one in making ready your group for these modifications in grant administration is to evaluate what issues you have already got.

  • What processes and insurance policies are presently in place?
  • How would you describe the present stage of understanding of the necessities contained in your award phrases and situations and compliance necessities typically?
  • Would you say that higher administration and program workers have a excessive stage of involvement and oversight into the grant administration course of?
  • Is the tone on the prime in alignment with the said priorities of the Council on Monetary Help Reform (COFAR) and the Workplace of Administration and Funds (OMB) of focusing on threat, bettering oversight, standardizing enterprise processes, and measuring efficiency?


Step Two: The place are the best alternatives and threats?

The following step in surviving these modifications is to conduct a SWOT evaluation of strengths, weaknesses, alternatives, and threats. This can inform you the place threats are coming from and the place you’ll be able to reap the benefits of alternatives for thriving on this new surroundings.

  • What does your nonprofit group do very well?
  • What areas of weak point have you ever recognized inside your group?
  • The place are new alternatives to your group to obtain extra funding?
  • What are the threats for discontinuation of contributions and grants?

This evaluation ought to assist you prioritize the duties that must be executed so you’ll be able to embrace the alternatives to additional your mission by way of grant funding.


Step Three: How will you thrive?

Now that you’ve got assessed your place to begin and recognized threats and alternatives, it’s time to maneuver ahead with a brand new imaginative and prescient for the longer term. The modifications to grant administration on this new age of accountability may even require modifications to the administration programs you want. Consider it this fashion: more and more your group might be funneled right into a world of knowledge analytics, elevated transparency by way of on-line reporting instruments, and increasingly more accountability to supply assurance that grant {dollars} are flowing as meant.

  • How are you going to perform this with restricted budgets and personnel?
  • How will you get the data you want out of your grantees with out overburdening them or your workers?
  • What reporting capabilities do it’s important to make sense of the info?

Some nonprofit organizations might be in denial or resist these modifications, and but the tempo of change will proceed to speed up. Some organizations will search affect and aid by way of the legislative department to gradual or stall extra necessities, but when historical past has taught us something, it’s that compliance necessities are likely to develop and never retreat.

Surviving (and Thriving) By means of Preparation

The way forward for grant funding belongs to the ready. Identical to the survivalists of actuality TV, the important thing to staying alive—and even thriving—within the federal grants recreation is to grasp your surroundings and be prepared for what you would possibly encounter. Organizations that embrace using know-how for effectivity and effectiveness of their administration programs might be higher positioned to reap the advantages of grant funding going ahead.

Are you prepared to make use of information to carry extra accountability to your grantmaking, however aren’t certain you’ve the talents or know-how to handle the grant course of? Try this case research on grant administration finest practices.

This put up was initially printed in September 2016 and up to date in September 2022.




The “Federal Grant Insider” Lucy Morgan delivers straight discuss with a way of knowledge and humor. She is a CPA, MBA, GPA Authorized Coach, Speaker, Writer of three books together with “Decoding Grant Administration- The Final Success Information to the Federal Grant Laws in 2 CFR Half 200” and “The Diamond Mindset” an Amazon ranked best-seller.  Lucy is a number one authority on Federal grant administration for non-profits, establishments of upper schooling and state, native and tribal governments.  She has written over 200 articles on grant administration subjects that are featured in LinkedIn, numerous E-zines and on the MyFedTrainer.com weblog.



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