Securing a large grant feels like hitting the jackpot—making all the hard work worth it. But the real work is just beginning. Bigger isn’t always better when it comes to grant funding. Grant funding can provide much-needed resources for programs, but often comes with increased responsibilities and workloads.
Soley focusing on the grant amount and not the aftermath overlooks the critical implications of managing a large grant. Before pursuing a large grant, it’s essential to assess your organization’s capacity to handle the increased workload. Cohost Amanda Day and I discussed this key topic in the latest episode of the Fundraising HayDay podcast HERE.
Here are key factors to consider when seeking grants, especially those with larger awards and/or multiyear commitments.
1. Program Management
Implementing a new program or expanding an existing one requires dedicated staff to:
– Execute program activities
– Track progress
– Ensure compliance with grant requirements
– Spend down the grant funds effectively and in keeping with the grant agreement
2. Financial Management
Larger grants, particularly federal and state grants, often come with complex financial reporting and tracking obligations. Ensure you have:
– Accountants familiar with grant-specific requirements
– Robust systems for maintaining checks and balances
– Proper documentation of all expenditures
– Finance and program team members able to collaborate on reimbursement requests
3. Monitoring and Evaluation
Most grantors require comprehensive data collection and impact assessment. This involves:
– Collecting and analyzing program data
– Preparing and submitting reports in the funder’s preferred format
– Potentially working with third-party evaluators
4. Administrative Support
Don’t overlook the need for overall administrative support, including:
– Coordinating report submissions
– Managing deadlines
– Handling day-to-day grant-related tasks
To set your organization up for success with large grants:
1. Be realistic about your capacity: It’s better to be honest upfront than to overcommit and struggle later.
2. Build staffing costs into the proposal: When allowed, include the cost of necessary personnel in your grant budget. NOTE: Most grants will not fund the costs of grant writing, as it occurred before the grant award. Grant management and administration costs could be allowable, however.
3. Track time and resources: Monitor the true cost of managing the grant to inform future decisions.
4. Educate leadership: Help your organization’s decision-makers understand the full implications of pursuing large grants.
By carefully assessing your organization’s capacity and planning accordingly, you can ensure that large grants become opportunities for growth and impact, rather than burdens that stretch your resources thin. Don’t let the allure of big numbers cloud your judgment – focus on right-sizing your approach to grants, and you’ll be better positioned to make a lasting impact on the communities you serve.
- How to Build Strong Budgets for Grant Proposals - September 13, 2024
- It’s Not the Size of the Grant, But the Quality of the Management That Counts! - September 6, 2024
- Maximizing Your Nonprofit’s Funding Potential - August 15, 2024
