At a glance, grantmaking and grant management can seem overwhelming. There are lots of details to consider, from designing a program to overseeing its implementation and following up on its impact. If you’re considering grantmaking as part of your approach to corporate citizenship, you’re in luck: with grantmaking software like Groundswell, you can give grants with ease, no matter the size of your organization. Let’s unpack the basics of grant management for businesses to explore how it can support your goals and social impact initiatives.
Before we dive into the “how” of grant management, let’s first establish the “what.”
A grant consists of funds awarded to an applicant for a specific project or purpose. Grants aren’t meant to be repaid, but they are meant to be tracked. That means they typically come with requirements for reporting on their impact and use.
The definition of grant management, however, can vary. From the perspective of grantmakers – that is, the parties who award funds and distribute grants – grant management is all about overseeing a grant throughout its lifecycle. This understanding of grants management is different from what a nonprofit organization or grantee might consider, but it’s just as important.
In the world of corporate grantmaking, the work begins with program setup. With a grant program conceptualized, grantmaking teams can then shift their attention to application design, intake, and review. Next comes the decision-making and awarding process, where funds are disbursed to their recipients. From here on, grantmakers focus on post-award assessment and impact.
A grant manager, also known as a grant administrator or award manager, is the person responsible for ensuring that grants are awarded and implemented effectively. In other words, they’re in charge of the corporate grant management process, from creating applications to keeping up with grantees after they receive awards.
Not all organizations have a dedicated grant manager or grant management team. Especially with the help of a purpose-built software solution, existing teams can manage grants as part of a larger corporate social responsibility (CSR) approach.
We know that grant management involves overseeing a grant throughout its lifecycle. But what does that lifecycle look like, exactly?
We can break the lifetime of a grant into three distinct stages:
A successful grant management program will have a plan and system in place to manage all three. Let’s take a closer look at what goes on in each stage of grantmaking.
This phase kicks off with the basic design of a grant program. It involves everything that happens before a grant recipient is chosen.
That includes program planning, goal-setting, and development. During this stage, management teams should develop guidelines for the program and determine how they’ll implement it.
Another key part of the pre-award phase is the creation and distribution of grant applications. Grant managers then collect applications and conduct a review process to determine who will make it to the next phase.
The award phase is typically the shortest and most straightforward. This is when the grantmaker awards a grant to its recipient. Grantmakers also work with awardees to create a final agreement on how the award will be used and how its impact will be reported.
Typically, this is also when grantors notify all applicants of their decision. This is another place where technology can be helpful – a grant management system that allows you to decline applications in bulk actions can be a huge timesaver.
Once all parties agree on the award and how it will be used, funds get disbursed to the grantee. An effective grants management platform should help you distribute funds (without additional fees) and track awarded funds so you can ensure your programs stay on budget as they scale.
After a grant agreement is signed and funds are disbursed, the grantor and recipient continue working together. Their goal now is to ensure that any expectations outlined in the grant agreement are being met.
The post-award phase also focuses on reporting and oversight. Grantmakers can provide support and oversee fund usage while collecting progress reports. This is a great opportunity to forge meaningful partnerships with nonprofit organizations, make new connections, and learn what you can do to improve future grant programs.
Grantmaking is one of many types of activities that can fall under the umbrella of economic corporate social responsibility. In other words, by participating in a grant program, businesses can give back and ensure that their impact on the community is a positive one.
The benefits of creating a grants management system affect everyone. They impact employees, business leaders, community members, nonprofits, and those they serve.
Plus, hosting a grantmaking program is a simple but effective way to improve your reputation. Consumers are more likely to trust companies that they know have benefitted themselves and their communities. They’re also more likely to see those businesses in a positive light, which supports better brand recognition and loyalty.
So, leveraging corporate grantmaking makes sense from a business and ethical standpoint. You don’t need to give millions to make an impact – all you need is a well-designed program.
No matter how big or small the awards you give may be, the best way to maximize the impact of your grants is by planning carefully and strategically. Here are a few key best practices to keep in mind as a business investing in grantmaking:
Choosing the right grant management system can make the difference between a good grantmaking program and a great one. The right technology transforms complex processes into seamless, impactful giving experiences.
At its core, grant management is a fairly straightforward process. As programs succeed and expand, though, things can sometimes get a little muddy.
Convoluted technology or complex systems can create bottlenecks that slow the grantmaking process down. Plus, without the means to collect reporting insights and data in a timely fashion, it’s easy to create awards that go over budget or fail to deliver the impact they aim to achieve.
No matter the size of your business, you need grants management software that makes it easy to oversee the grant lifecycle. Groundswell gives your company the same tools and functionality of a corporate grantmaking platform without the administrative burden or high price tag.
When you choose Groundswell as your grant management platform, you can take advantage of benefits like:
See why Groundswell earned the G2 badge for Easiest to Use and Most Implementable yourself by booking a demo with our team today.
