Grants Management

To manage grant awards effectively, you’ve got to know the rules. With private funders, the regulations and requirements can usually be adequately handled through good business and accounting practices.

But it’s different with government grants, especially federal grants. Uniform Guidance issued by the U.S. Office of Management and Budget (OMB), along with agency-specific and program-specific requirements, demand that someone within your organization develop an understanding of the rules and regulations.

After the euphoria of receiving the grant award fades, the hundreds of grant management to-dos jockey for priority attention. Organizations that have the basics of solid grant management in place will be fine, even if they feel stretched. But when the basics aren’t covered, the situation can easily spin out of control.

Almost every nonprofit wants grant funding. And why not? Grants are a great resource for powering your organization’s work forward, but the infrastructure to support grant acquisition and management is commonly neglected. Large nonprofits, hospitals and educational institutions, typically invest in infrastructure to support the grants process, but in small and mid-sized nonprofits, grants work is commonly catch-as-catch-can, with various staff members taking on roles that can be matched with their skills and squeezed into their workload.

If your organization has experienced financial difficulty in the past or received a less than perfect audit, you might still get federal grant funds but be designated by the government as a “high risk” grant recipient. If your organization is cash poor, a high-risk grantee designation will make things even harder because you’ll be placed on reimbursement funding status—a kind of funding purgatory. Reimbursement funding status means you must advance your own funds first and then get reimbursed when you submit documentation of spending.

Thousands of federal grant proposals are submitted each year. Around 80% will be rejected and around 20% on average will get funded. The required signatures on the federal Standard Form 424 face sheet and the companion “Standard Assurances” bind your organization to comply with each of the 23 assurances associated with receipt of federal funding.

When auditors assess your handling of grant funds, they’re not looking to ding you at every possible point with negative findings. Their job is to provide an official opinion about your financial statements that is unqualified, qualified, or disclaimed. An unqualified opinion means that your financial statements are free of material error and may be relied upon. 

Barbara Floersch & Henry Flood co-lead the Grant Management Essentials training program. They both juggle many hats, and have many years of experience writing grant proposals and training grant pros. We wanted to get to know them a bit better—their grant wins and what they do when they aren’t training or consulting. 

The procurement rules governing purchases made with grant funds changed when the federal Office of Management and Budget (OMB) issued new Uniform Guidance on grant administration (the Super Circular) in late December 2014. The good news is that the one-year grace period the feds gave nonprofit organizations to comply with the new requirements has just been extended to two years.