When grant funding is an important revenue source, grant compliance becomes critical to nonprofit success. Without it, grant funding could be jeopardized, putting vital programs and initiatives at risk. This makes optimizing your grants compliance approach not just a goal, but a necessity.

However, many organizations struggle with meeting compliance requirements due to outdated systems, manual processes, or limited resources. Recent data underscores these challenges – 54% of grants management professionals report frustration with inefficient tools associated with managing grants. 

Whether you’re juggling multiple funders or wrestling with complex reporting requirements, having the right tools in place can make a world of difference. In this checklist, we’ll review different types of software you can use to streamline grants management and how to expand your tech stack for maximum impact.

1. Grants Compliance Software 

Grants compliance ensures organizations adhere to funders’ requirements, from proper use of funds to timely reporting. It’s critical not only for maintaining current funding but also for securing future opportunities. According to Thompson Grants’ guide to grant compliance, keeping up with compliance best practices is essential for not only maintaining funding now, but receiving funding in the future.

Grants compliance software simplifies these complex tasks by providing a centralized system to manage deadlines, regulations, and documentation. This automation minimizes errors and allows teams to stay focused on their missions.

Key features to prioritize in grants compliance software include:

  • Custom learning materials. Tailored educational materials help your team understand compliance requirements. Similar to a learning management system, grants compliance software should provide easy access to educational compliance materials.
  • Real-time updates on grant policy. Stay informed of evolving regulations and funding factors with real-time alerts. The best grants compliance solutions provide real-time updates on economic factors that impact your funding.
  • Document management. Securely store, organize, and retrieve important records for audits or reporting with minimal effort.
  • Access to a database for funding opportunities. Locate new grants while ensuring your processes meet the expectations of potential funders.
  • Practical tools and resources. Access ready-made forms, templates, and worksheets, saving your team from starting compliance work from scratch.
  • Ability to ask and get answers to your problems. Gain precise answers to your unique compliance questions without incurring high costs.

By integrating these features, grants compliance software helps streamline operations, reduce risks, and demonstrate accountability, making compliance seamless and sustainable.

2. Grant Management Tools

Grant management software is a vital tool for organizations navigating the complex grants lifecycle. From finding funding opportunities to post-award reporting, managing each phase efficiently ensures compliance, improves collaboration, and maximizes the impact of awarded funds. It streamlines processes, reduces manual errors, and saves valuable time for both grantseekers and grantmakers.

Key features to prioritize in grants management software include:

  • Advanced filtering. The ability to sort and categorize data precisely ensures users can quickly find relevant grants or financial information, saving time and improving focus.
  • Application and proposal management. Simplify the submission process with tools for drafting, tracking, and organizing proposals. This ensures deadlines are met and proposals align with funders’ requirements.
  • Budget and financial tracking. Monitor spending against grant budgets in real-time. This feature is crucial for staying compliant and avoiding overspending while making strategic adjustments as needed.
  • Reporting and dashboards. Generate detailed reports and visualize grant performance through intuitive dashboards. These tools provide insights into key metrics, from fund usage to outcomes achieved.
  • Task management. Assign, track, and prioritize tasks across your team to stay on top of every stage of the grant process. This feature fosters accountability and ensures nothing falls through the cracks.
  • Integration with online grant databases. Access to research tools helps identify new funding opportunities without switching platforms. 

By leveraging these tools, grant management software simplifies operations while keeping teams organized, informed, and effective throughout the grants lifecycle.

3. General Financial Management Tools

For nonprofits operating on tight budgets, general financial management software is an indispensable resource. While purpose-built grant management tools offer expansive functionality, financial management software provides the foundational tools needed to ensure fiscal responsibility. It enables organizations to control their finances, allocate resources efficiently, and maintain transparency with stakeholders. Financial management tools allow you to manage expenses and revenue, from your fundraising efforts to overhead expenses.

Key features to look for in financial management software include:

  • Expense tracking. Keep a close eye on expenditures by categorizing and monitoring costs. This ensures that every dollar is accounted for, making it easier to spot trends and avoid unnecessary spending.
  • Financial reporting and dashboards. Access clear, real-time visualizations of financial performance through user-friendly dashboards. Generate detailed financial reports to share with board members, donors, or auditors and maintain transparency.
  • Allocation to different projects. Allocate funding accurately across various campaigns or programs. This feature helps maintain accountability and ensures that every initiative is adequately funded without exceeding budget constraints.
  • Cash flow management. Track income and expenses over time to better understand your financial health. This is critical for planning and ensuring your organization can sustainably meet its goals.
  • Integration with accounting systems. Seamless integration with existing accounting software minimizes manual data entry and reduces the risk of errors.

For nonprofits that can’t yet invest in specialized grant management solutions, these tools form the backbone of financial stewardship, helping organizations stay financially sound while focusing on their mission.

Managing grants and finances can feel overwhelming, but the right tools make all the difference. Whether you’re ensuring compliance with funders’ regulations, managing the grant lifecycle, or overseeing your organization’s overall financial health, purpose-built software simplifies operations and ensures accountability. Tools with advanced features save time and reduce risks, letting you focus on your mission instead of paperwork.

Get started by demoing different tools to ensure you find the best fit. Ask about pricing and flexibility so you only pay for what you really need. With the right system in place, you’ll build a solid financial foundation to support your nonprofit’s success.

About the Author:

Jerry Ashworth Nonprofit Professional

Jerry Ashworth is the editor at Thompson Grants. Mr. Ashworth has served as the editor of these publications for more than 22 years. He has more than 35 years of journalism experience, including the last 30 years in the newsletter industry covering a range of topics from federal grants and single audits to electronic commerce and environmental issues. Mr. Ashworth has a Bachelor of Arts in Journalism degree from the University of Georgia and is a member of the Society of Professional Journalists. He can be connected with via LinkedIn.

 

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