Grants: Types, Management, and Tools for Success
Any nonprofit knows that grants are an essential part of the organization. They are the lifeblood that help achieve a nonprofit’s mission. Knowing the types of grants that require management and the best tools to administer each is a key to success. Proper management of those funds is equally critical — it not only helps your organization maintain the funds you’ve won, but it also enables you to win more grants in the future.
Types of grants
There are six types of grants that require management. They include:
- Capital grants – used for acquiring materials or tangible assets
- General operating grants – supports the general mission, pays for overhead expenses, and day-to-day costs
- Program grants – used to fund a specific activity or project
- Start-up grants – helps fund new organizations
- Technical assistance grants – offers funds for obtaining expert assistance
- Planning grants – funds studies, plans, and evaluations to determine the viability of a potential venture
What is grant management?
Grant management is all of the work that goes into fulfilling the requirements of a grant. It’s not just accounting — it’s every activity involved in meeting a funder’s specifications. It includes administration, evaluations, and lots of reporting. Timely and accurate reports show proof the funds are used wisely. Lack of reporting and mismanagement of funds can lead to a loss of both current and future funding, not to mention damage a nonprofit’s reputation.
Tools to manage grants
Upon startup, nonprofits usually manage grants with simple tools. Notebooks and spreadsheets are typical. Some use basic accounting programs to handle bookkeeping, invoicing, and donation tracking. As nonprofits grow, however, those tools quickly become cumbersome. Each new grant requires careful management and reporting. Grantors are counting on timely and accurate reports to continue funding.
What’s the best grant management tool?
Here at Qbix, our team of nonprofit accounting experts has worked with many. What we’ve learned is that grant management is easy with the right software. We’ve evaluated tons of programs and found that Sage Intacct’s Project Accounting module is the best tool for grant management. It’s built to ensure organizations are stewarding donations and grants appropriately.
Even better, it’s scalable. As your nonprofit grows, the software grows with you. It can track an unlimited number of funds, grants, and donations — going above and beyond the basics without being complicated. For instance, you can easily link time and expenses back to one or more sources of funds at the employee, task, or project level. Can your notebook do that?
If you need a hand with grant management, we can help. We’ve teamed up with countless nonprofits to manage their grants and accounting better. Many have won more grants as a result. Schedule a quick, complimentary call with us today. You’ve got nothing to lose and so much to gain.
Non Profit Accounting Solutions
Qbix was formed in 2008 in Macon, Georgia, just south of Atlanta. Our goal is to provide the latest cloud accounting technology, while delivering real-time visibility into your nonprofit's financials 24/7. Numbers are our passion, but providing your nonprofit business with the financial expertise needed to facilitate growth and profitability is our top priority. And because no two organizations are the same, Qbix offers the flexibility you need to accomplish your nonprofit's goals.
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