Winning a grant is only the beginning--tracking and using the grant can be just as challenging. On average, a grant manager spends 25% of their time tracking the financial administrative requirements. These requirements vary greatly depending on whether the grant is publicly funded, privately funded, or government-funded. For example, federal grants must follow the uniform administrative requirements, cost principles, and audit requirements for federal awards.
How long it takes to fulfill these requirements depends on the system used. Even if a public agency uses software, if it's disjointed or siloed (think a Google Drive or Excel File), it can be difficult to connect the funding to the services it was used for.
Modern grant management software like PlanStreet offers a better solution. In this article, we'll detail these benefits and how they can help your organization.
What is a Grant Management System?
A grant management system is specialized software designed for public agencies, nonprofits, community organizations, and federal institutions to manage grants from start to finish. It offers automated and streamlined tools to track and report grant spending, showing funders how an organization has stayed true to the requirements set. It's built to help with challenges that public agencies hit when managing grants.
A grant management system typically offers:
- One place for all grant tracking.
- A management system for grant applications.
- Financial tools to build reports and track spending.
- Collaboration tools like messages or commenting to help teams work together on grant management.
Eight Benefits of Grant Management Systems
1. Streamlines the Grant Processes
One of the biggest benefits of a grant management system for a public agency is that it streamlines the process from beginning to end. The grant lifecycle can be fraught with tedious administrative work. Grant writers must track the grants their agency should apply to, the dates the grants are due, and the materials required for the application (amongst other things).
The application process moves faster with the help of grant management systems. Writers have a wealth of data at their disposal and can use facts and figures from reports to show how effective the public agency can be at managing funds. Busy interested parties, such as board members, can look at the grant process at a glance and offer quick insights.
2. Enhances Compliance and Reduces Errors
Every grant has different funding requirements and policies. Customizable government grant software like PlanStreet can be adjusted to match the criteria of that grant. The relevant data, such as spending, outcomes, and reporting rules, can be showcased in easy-to-read-reports. You can use a pre-built set or create your own charts, pie graphs, and more.
These reports are critical to protect your organization during an audit. Save all of this documentation, and you will always be able to remain accountable to funders. This way, you spend your agency's funds on helping your community--not on noncompliance penalties.
3. Improves Transparency and Accountability
Once grants are won, grant management software makes it easier to maintain transparency with funders. Grant management software built for the public sector (like PlanStreet) offers features such as:
- Simple grant distribution: Disperse money from a specific grant to activities at the micro-level.
- Unified reporting of grant use: With one click, users can see the entire history of one grant.
- Uncluttered grant assigning: Once a grant is finished, the agency can no longer disburse the funds in the system.
- Intuitive data filtering: Easily showcase the data in a way that's easiest for stakeholders and the public to understand.
4. Optimizes Resource Allocation
Unfortunately, 68% of nonprofits plan to cut programs and services in the next two years due to a lack of funding. Public agencies need to understand where the bloat is to make the most of each budget. A grant tracking system opens up an organization's ability to track resources. By merging with case management software, you can pinpoint which programs optimize client outcomes.
Similarly, you can see which programs or resources cost the most money without a reliable return on investment. With this information in front of you, public sector agencies can plan strategically for the future and budget for the programs that help their clients and communities the most.
5. Enhances Data Security
The sad reality is that 27% of nonprofits around the world have experienced a cyberattack. Criminals often target smaller operations such as solo law firms, small accounting firms, and even public agencies since they are less likely to have robust security in place.
When you work with modern grant management software, the company must prioritize security. These solutions must be HIPAA-compliant, FedRAMP compliant, and/or TX-RAMP certified, to name a few. According to the HIPAA security rules, regulated entities must:
- Ensure the confidentiality, integrity, and availability of all ePHI they create, receive, maintain, or transmit.
- Protect against reasonably anticipated threats to the security or integrity of the information.
- Protect against reasonably anticipated, impermissible uses or disclosures.
- Ensure compliance by their workforce.
6. Facilitates Better Decision-Making
When you track all of the grants that your organization has won, you can start to see patterns in your grant lifecycle management. You understand which types of agencies tend to fund your organization and how much grant money you receive each year. Your team can focus on the type of grants that best help your organization--and spend less time working on grant applications you usually don't win.
7. Improves Stakeholder Engagement
Board members, staff, volunteers, donors, beneficiaries, and the community at large all care about the health of the public agency. Using one platform allows these groups to communicate with one another. An applicant of a program can use the client portal to fill out documentation, review the status of a request, or send a case manager a message.
Agencies can customize a client portal for a donor as well. A donor can log in to see new updates from the agency, request funding reports, or chat with the grants manager.
8. Supports Scalability and Future Growth
As public agencies grow, they need more financial support to manage their programs. Say an agency has developed an after-school program. It originally started with 15 children, but word has spread throughout the neighborhood, and now 30 more want to sign up. An agency needs a grant tracking system that can handle multiple funding sources, such as private giving or crowdfunding, to allow programs to grow.
With PlanStreet, there's no limit to the number of grants or funding sources you need to track. You can check the disbursement date, number of cases served, percent remaining, the usage breakdown, and more for each grant, allowing you to plan for future programs easily.
Frequently Asked Questions About Grant Management Software
What Are Expected Outcomes or Benefits After Implementation of Grant Compliance Software?
Expected outcomes and benefits after implementation of grant management software include:
- Reduced admin time: Repetitive tasks like allocating money to programs, tracking applications, and typing information into forms over and over are reduced due to saved data and automated systems in GMS.
- Fewer errors: Applications are more accurate because information saved in the GMS can be automatically populated into documents--no more mistakes from double data entry.
- Automated compliance: A grant management system can be customized to create safeguards for grant spending. You can cap spending for each grant and automate reports, keeping on budget and satisfying reporting requirements.
How Can a Public Agency Transition from Its Current System to a New GMS?
A public agency can transition from its current system to a new grant management software by first completing a needs assessment. Consider: what are your agency's goals? What are your requirements? How will you measure success? Ask board members and funders for their opinions.
Then, research different grant management solutions. Schedule a demo with each one to see the software's interface, helping you assess if it's user-friendly or not. Select questions from your needs assessment to ask in the demo that weren't answered from your research.
Once you've chosen your software, schedule a time to migrate all current information. Be sure to train employees before expecting them to use the software. Most software has a support center to answer user questions--make sure everyone on your team has the link.
How Does a Grant Management System Improve Compliance and Audit Readiness?
A grant management system improves compliance and audit readiness through:
- Automated compliance checks: Set up reminders to send reporting and documentation to funders on a specific date.
- Standardized workflows: Create a customizable set of tasks for different assignments, ensuring workers never miss a step.
- Detailed audit trails: Every action is tracked, including approvals, fund allocations, budget changes, and user activity. This can be shown through a report to assess compliance if requested.
Automate Grant Management for Public Agencies With PlanStreet
Your time is precious--it shouldn't be spent bogged down in tedious administrative work. Manage grants better with PlanStreet. Our detailed yet easy-to-use public sector grant management system can simplify your process, making it easier to remain compliant and use the funds to the best of your ability. Schedule a live demo with our team today to see how PlanStreet can simplify your grant tracking.