Grant Management: The Complete Guide for Nonprofits

Winning a grant is a milestone. Managing it properly is the real work. Poor grant management jeopardizes future funding -- funders talk to each other. A reputation for missed deadlines or misused funds follows an organization for years.

The Grant Management Lifecycle

• Read the entire grant agreement -- highlight deadlines, restrictions, allowable expenses
• Create a grant file (agreement, budget, timeline, reporting requirements)
• Set up separate financial tracking in your accounting system
• Brief everyone involved on what the money can and cannot fund
• Calendar all deadlines with 30-day, 14-day, and 7-day reminders

Monthly: review expenses against approved budget, track activities against milestones, collect reporting data continuously, maintain documentation for every expenditure.

Most grants allow 10% variance between categories. Request modification in writing before exceeding limits.

Start draft reports 30 days before deadline. Include: narrative (results before activities), financial (budget-to-actual), data (outputs/outcomes vs. targets), challenges (be honest -- funders respect transparency).

Final report submitted, expenses reconciled, unexpended funds addressed, deliverables complete, file archived 7+ years.

Financial Compliance

Typically allowable: Salaries at allocated percentage, program supplies, related travel, budgeted equipment, approved indirect costs.

Typically unallowable: Fundraising, lobbying, entertainment, fines, costs outside grant period, unbudgeted expenses.

Federal grants (2 CFR 200): Uniform Guidance governs cost principles, administration, and audit requirements. Single Audit required at $750K+ in federal expenditures.

Common Grant Management Failures

Missed deadlines -- damages funder reputation more than almost anything

Commingled funds -- makes tracking and audit impossible

Scope creep -- even well-intentioned deviations violate agreements

Poor documentation -- "we did it but did not document it" does not satisfy auditors

Last-minute reporting -- produces weak reports that do not do justice to your work

For grant writing guidance, see grant proposal writing guide. For LOI preparation, see letter of inquiry template.

Tangible Takeaway

Create a grant setup checklist completed within 14 days of every award notification. Read the full agreement, set up financial tracking, calendar all deadlines with advance reminders, and brief every team member. These 2-3 hours at setup prevent 90% of compliance problems.

Frequently Asked Questions

How do I track time for staff on multiple grants? Time and effort reporting. Staff track percentage on each grant. Required for federal, best practice for all.

Can I charge indirect costs? If the agreement allows. Many foundations permit 10-15%. Federal: negotiated rate or 10% de minimis.

What if we cannot spend all the funds? Notify the funder before the period ends. Most prefer a no-cost extension over returned money.

How long to keep records? Seven years minimum from grant end. Federal may require longer.

What if we need to change scope? Contact the funder before making changes. Most will work with you if you communicate proactively.

About the Author

Drew Giddings is the Founder and Principal Consultant of Giddings Consulting Group, with more than 30 years of experience in fund development, organizational development, and strategic planning.

Contact Giddings Consulting Group to discuss grant management, fund development strategy, or organizational planning for your nonprofit.