Grant management: Process, roles & tips for nonprofits

If you lead a nonprofit, you know how complicated grant management can be. Finding the right grants, meeting reporting requirements, and submitting applications all take a lot of time. The good news is, there are ways to make this process easier.

With the help of software tools, you can organize and prioritize your grant applications until final approval. With a process in place, you can spend more time creating meaningful workflows that support your mission.

This article will explain the grant management process, why it’s important, who should be involved, and offer tips to help you succeed.

What is grant management?

Grant management is the process of overseeing all activities related to grants, from identifying funding opportunities and submitting applications to tracking expenditures, ensuring compliance, and reporting on outcomes. For nonprofits, it encompasses the entire grant lifecycle, including grant tracking, financial oversight, and grant closure.

A grant management system typically involves three key components:

• Application management: Tracking grant opportunities, preparing proposals, and submitting applications on time.

• Financial oversight: Managing budgets, tracking expenditures, and ensuring funds are used according to grant terms.

• Compliance and reporting: Meeting funder requirements, submitting progress reports, and maintaining audit-ready documentation.

A big part of grant management is grant writing. This is when team members use the information they’ve collected to write the grant proposal.

Why grant management matters

Good grant management is about more than just keeping records. It has a direct impact on your nonprofit’s growth and ability to achieve its mission.

Strong grant management helps you:

• Build funder credibility: Responsible fund management demonstrates reliability and opens doors to future opportunities.

• Position for larger grants: A proven track record makes your organization more competitive for significant funding.

• Ensure compliance: Meeting requirements protects your nonprofit from audits, penalties, and reputational damage.

• Reduce team stress: Clear processes give your team confidence that deadlines and reporting are under control.

Risks of ineffective grant management

Poor grant management can have serious consequences for your nonprofit:

• Financial penalties: Mismanaged funds can trigger audits or require repayment of grants.

• Reputational damage: Compliance failures strain relationships with funders and limit future opportunities.

• Operational strain: Teams stuck in catch-up mode experience lower morale and reduced productivity.

• Program instability: Lost funding jeopardizes the initiatives your community depends on.

The good news is that with the right processes and tools, you can avoid these risks completely.

Grantmakers vs. grantseekers

Grant management includes two main roles: grantmakers and grantseekers. Both are important to the process. There are also grantors and funders, who help award grant funds, but usually do not interact directly with businesses.

A grantmaker differs from a grantseeker in terms of their roles and responsibilities.

• A grantmaker is responsible for creating grants. This includes setting goals, reviewing regulations, and awarding grants. Grantmakers often work for federal agencies in grant departments.

• A grantseeker looks for grant opportunities, which is probably your role. This means identifying your needs, gathering information, and writing and submitting grant applications. Grantseekers can be organizations like 501(c)(3)s or small businesses.

Both roles are important for effective grant management and often work together for a successful grant process. Next, we’ll outline the steps for nonprofit grantseekers.

Who is responsible for grant management?

Grant management is a team effort that needs input from different departments and leaders in your nonprofit. How you organize this depends on your organization’s size and the number of grants you handle.

Small organizations pursuing their first grants often handle the entire process in-house and divide duties among staff members with bandwidth. As your grant portfolio grows, you may designate a dedicated grants manager or coordinator to oversee the lifecycle.

Key roles typically involved in grant management include:

• Grant writer: Researches opportunities and crafts compelling proposals that align funder priorities with your organization's mission.

• Grants manager or coordinator: Oversees the entire grant lifecycle, from application through closeout, ensuring deadlines and compliance requirements are met.

• Finance team: Tracks grant expenditures, maintains separate accounting for grant funds, and prepares financial reports for funders.

• Program leads: Implement grant-funded initiatives and provide data on outcomes and impact for reporting purposes.

• Executive leadership: Provides strategic direction, approves grant applications, and maintains relationships with key funders.

No matter how your team is set up, clear communication and defined roles are key. When everyone knows their responsibilities, the grant process goes more smoothly.

The grant management process

The grant lifecycle has three phases: pre-award, award, and post-award. Knowing each phase helps you organize your work and move smoothly from application to closure.

Consider this checklist of steps to get started with a grant proposal:

1. Gather internal information: Collect information on cash flow, employee size, and volunteers for the application process.

2. Seek grant opportunities: Search the grant database for updates on new opportunities and to see eligibility requirements.

3. Apply to relevant grants: Find the right grants for your organization based on financial needs and funding eligibility.

4. Execute the grant funding: Once awarded the grant, use the funding to execute your missions.

5. Close the grant proposal: Store necessary information in a shared space accessible anywhere, anytime.

Following these steps will help you stay organized each time you apply for a new grant.

We’ll walk through each phase and explain the steps you need to take to create a strong grant proposal.

1. Pre-award phase

The pre-award phase covers all tasks before a grant recipient is chosen, including planning, research, and application submission. There are three key steps:

• Grant planning means gathering information about your revenue, team size, and fundraising needs. Once you have this, you can look for grant opportunities that match your nonprofit’s goals.

• Grant opportunity: Organize the information you gathered into simple qualifying points. You may be required to possess specific internal capacity and expertise. Search for grants using your country's grant database or use work management software to streamline your opportunity pipeline.

• Grant application: After you’ve collected your qualifications and found a good match, write your application using the details from the grant listing and send it to the right contact.

Pre-application readiness checklist:

• Clear funding objective defined

• Revenue projections documented

• Team and volunteer capacity confirmed

• Alignment with organizational mission verified

After you submit your application, you’ll enter the award phase and wait to hear the funder’s decision.

2. Award phase

In the award phase, the grantmaker selects the grantees. If you’re chosen, you’ll get an agreement outlining the grant’s terms and conditions.

These terms might cover things like your volunteer team size or how you’ll use the grant funds. Once both you and the funder sign the agreement, the grant is officially awarded.

If you aren’t selected, the process ends here. You can then move to the closeout step, which means storing your information for future review.

3. Post-award grant proposal process

After the grant is awarded and the agreement is signed, you can start using the funding for your organization’s projects.

The post-award phase consists of two steps:

1. Grant execution: In this phase, you receive the funding and start your project. You might need to send regular reports to show you’re meeting the agreed terms and making progress.

2. Grant closeout: After you’ve used the funding, you close out the project by saving records of how much you received and how you spent it. This helps with future grant proposals.

These two steps—execution and closeout—are part of a cycle most nonprofits repeat with each new grant application.

How to manage grants effectively

Getting grant funding is only the first step. To make the most of it, you need to manage the grant carefully from start to finish. Here are some key steps for managing grants well, whether you’re new or experienced.

Develop a project plan

Good grant management starts with a clear project plan. This plan should list your goals, timelines, budget, and team members. It acts as a guide for carrying out the project and tracking your progress.

Establish clear communication

Grants usually involve several people and partners. Setting up clear ways to communicate helps everyone stay updated on progress, challenges, and any changes.

This includes holding regular meetings and sharing updates so everyone stays informed. These steps help your team work together and stay focused on the project’s goals.

Implement rigorous financial management practices

Accurate financial reporting makes sure grant funds are used correctly. Important practices include:

• Separate accounting: Set up dedicated systems for tracking grant expenditures.

• Regular audits: Conduct periodic reviews to catch issues early.

• Detailed records: Maintain receipts and documentation for all grant-related transactions.

Monitor performance

Tracking your project’s progress is important for making timely decisions. Real-time monitoring helps you solve problems quickly and keep the project on track. This ongoing attention helps you meet milestones and follow grant agreements.

Ensure compliance with grant requirements

Compliance is non-negotiable in grant management. Understanding and adhering to all grant requirements, including reporting schedules, financial guidelines, and any other stipulations outlined in the grant agreement, is critical. Regular compliance checks and staff training can help prevent any missteps.

Prepare for audits and final reporting

Audits and final reporting are key components of the grant lifecycle. Maintain detailed, organized records of all project activities, spending, and outcomes throughout the grant period to support final reporting. A well-prepared grant administrator can readily demonstrate project success and effective use of funds.

Focus on sustainability and impact

Effective grant management looks beyond the immediate project to long-term sustainability. Plan for how the project's benefits will continue after the grant period and measure impact on your target population. Demonstrating positive outcomes strengthens funder relationships and supports future grant opportunities.

Grant application tips

Here are a few tips to help make your grant applications more efficient and effective.

These include making a grant calendar to stay on schedule and using grant management tools to make the process smoother.

Create a grant calendar

Creating a project calendar is a great way to ensure your entire team stays on the same page throughout the grant proposal process. It can also help you track and organize the grants you've applied for to prevent duplicate work.

Your calendar should include:

• The application window deadline

• Internal task timelines

• Any recurring dates associated with the grant process

To make the most of your calendar, use a tool with a timeline feature. This helps you link tasks to your organization’s goals.

Automate the manual application process

Business process automation can help streamline your workflow, leaving you more time to focus on the work that matters. And as a nonprofit, more time means more giving back to the community.

Consider software automation to streamline the application process and remove manual work. By automating the process, you can set and shift due dates, hand work off to the right team member, and increase cross-functional visibility.

Assemble a resource library

Applying for grants can be a time-consuming task. It requires various documents to be assembled to provide proof of eligibility to grantmakers and grantors. By creating an organized template library, you can easily access information whenever you need it.

To create a resource library, organize relevant documents that show proof of information, such as revenue, current funding, and the size of your team. Store these documents in a shared tool that all stakeholders can access at any time.

Implement work management tools

Using work management software can help you oversee and streamline the grant proposal process. It enables you to manage your grant programs in one place, set up workflows in a snap, and hit your goals.

With work management software, you can reduce the busywork and spend more time achieving your organization's mission. For inspiration about how other nonprofits have used grant management software, learn how Hope for Haiti improves the lives of more Haitians with Asana.

Streamline your grant management process

Set up a grant management process to help your nonprofit get the funding it needs to make an impact. Using these tips will make your next application go more smoothly.

Ready to get started on your own grant management plan? Find out how Asana helps nonprofits streamline grant management so they can focus more of their time and resources on their mission. Get started today.

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Frequently asked questions about grant management