INSIGHT

What is grant management? 

Angela Thomas, Jonathan Bryson, Caroline McDonald • April 8, 2025

Services: Sage Intacct Industries: Nonprofit

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For nonprofits, grants provide essential funding to keep programs running and expand their impact. However, securing a grant is only the first step—managing it helps to support long-term success and build credibility with funders. 

Grant management is the process of applying for, administering, and overseeing grant funding to ensure it’s used effectively and in compliance with funder requirements. It covers the entire grant lifecycle—from identifying opportunities and submitting applications to tracking expenses, meeting reporting obligations, and closing out or renewing grants successfully. 

Without a structured process, your organization risks misallocating funds, missing reporting deadlines, or failing to meet compliance requirements—all of which can jeopardize future funding opportunities. 

Understanding the grant management process 

A well-organized grant management process helps your nonprofit use funds efficiently while building credibility with funders. Here’s how to navigate each key phase in four steps: 

1. Identifying grant opportunities 

Find grants that align with your nonprofit’s mission and funding needs. These could be: 

• Project-based grants for specific initiatives 
• General operating support to cover day-to-day expenses 
• Capacity-building grants to strengthen internal systems 

Targeting the right type of grant helps ensure resources are used strategically and efficiently. 

2. Application and proposal development 

A compelling grant proposal will help you secure funding. To create one: 

• Gather all required documentation 
• Clearly outline how the funds will be used 
• Set measurable objectives to demonstrate impact 

Your proposal should make a strong case for why your nonprofit deserves funding and how it will deliver tangible results. Pro tips: A strong basic application can often be used for or as a basis for many applications! Also, be sure to save a copy of what was submitted specifically as grant documents often refer back to them.  

3. Implementation and fund tracking 

Winning the grant is just the beginning—now it’s time to manage the funds effectively. This means you should: 

• Allocate the budget according to the agreed terms 
• Track all expenses and donor restrictions carefully to maintain compliance 
• Keep detailed financial records to protect your nonprofit’s reputation 

4. Reporting and compliance 

Grant funders expect transparency. Regular updates, financial reports, and progress summaries help demonstrate responsible grant management. By keeping funders informed and addressing challenges proactively, you build trust and improve your chances of securing future grants. Complete and timely documentation will also make the audit process much easier when questions are asked months later. Failure to stay compliant with donor restrictions or not saving your documentation to show that you were complying, can create more work down the road. 

The grant management lifecycle 

To manage grants effectively, follow a structured process from start to finish. The grant lifecycle consists of several key phases that help your nonprofit stay compliant, allocate resources wisely, and build strong relationships with funders. 

Pre-award phase 

Before applying for a grant, your nonprofit needs a clear plan: 

• Assess your funding needs: identify gaps in your budget and determine how grants can support your mission 
• Research grant opportunities: look for funders whose priorities align with your programs paying attention to barriers that might need to be met and what costs are and are not allowable in each opportunity 
• Prepare strong applications: develop a clear proposal with measurable goals, a budget breakdown, and a compelling case for funding 

A well-prepared application not only improves your chances of securing a grant but also sets the stage for a smooth implementation process. 

Award phase 

Winning a grant is an achievement, but now the real work begins: 

• Launch the funded project: execute your program based on the approved proposal 
• Track expenses and maintain compliance: keep detailed records of every grant-related transaction 
• Update funders on progress: regular reporting reassures funders that their money is making an impact 

This stage requires careful financial oversight and open communication to maintain ongoing compliance and future funding opportunities. 

Close-out phase 

As the grant period comes to an end, your nonprofit should complete final reporting and evaluations with attention to donor deadlines for reporting and renewal opportunities: 

• Submit final reports: provide a detailed breakdown of how funds were used, major accomplishments, and challenges encountered 
• Evaluate impact: measure program results against initial goals and gather insights for future applications 
• Document lessons learned: capture best practices and strategies that worked well to streamline future grant management efforts 

Successfully closing out a grant demonstrates accountability and strengthens your nonprofit’s reputation, increasing your chances of securing future funding. 

Common challenges in grant management 

Even with a strong plan, managing grants comes with challenges. From limited resources to tracking multiple funding streams, your nonprofit could face hurdles that slow its progress. 

Limited resources 

Your team is likely stretched thin, balancing tight budgets with heavy workloads. This can make it difficult to dedicate sufficient time for grant management, leading to missed deadlines or reporting issues. 

How to overcome it: 

• Automate routine tasks with grant management software to reduce administrative burden 
• Leverage outside guidance by working with grant consultants or external accountants when needed 
• Invest in training to upskill your team and improve efficiency 
• Consider outsourced accounting services as an alternative to—or to augment—your in-house accounting staff. 

Tracking multiple grants simultaneously 

Managing several grants means juggling different deadlines, reporting requirements, and budget restrictions. Without a centralized system, things can slip through the cracks. 

How to overcome it: 

• Use grant portfolio management tools to track all grants in one place 
• Create a standardized reporting process to manage consistency across funding sources 
• Align grant activities with organizational goals so funding decisions support long-term sustainability 

Communication gaps 

A lack of internal communication can lead to confusion, duplicate work, and missed tasks—disrupting your grant management process. 

How to overcome it: 

• Schedule regular check-ins to help ensure everyone is aligned 
• Use collaboration tools that allow teams to share real-time updates and key deadlines 
• Assign clear responsibilities to avoid duplication of work 

How Sage Intacct supports effective grant management 

Managing grants effectively requires more than just staying organized. You should maintain compliance, accuracy, and efficiency while keeping your focus on the mission. That’s where Sage Intacct, an AICPA-preferred software, makes a difference. 

Sage Intacct provides specialized solutions that meet the unique financial management needs of nonprofits, from tracking donations and grants to ensuring compliance with complex regulations. Its designation as AICPA-preferred software highlights its reliability and adherence to high accounting standards. 

Key features for nonprofit grant management 

Sage Intacct’s specialized tools address the financial needs of nonprofits managing complex grant portfolios: 

Fund accounting: Track multiple funding sources separately with real-time fund balances, restricted fund tracking, and automated allocation of funds across programs. 

Grant tracking: Monitor the complete lifecycle of each grant, from application to reporting, ensuring compliance with funding requirements and obligations. 

Real-time reporting: Create customizable dashboards that display key performance indicators relevant to your organization, such as program expenses and revenue by funding source. 

Compliance support: Prepare for audits with comprehensive audit trails, automated compliance reporting, and built-in controls that reduce risks of errors. 

With these capabilities, Sage Intacct enables nonprofits to streamline operations, maintain financial integrity, and focus on achieving their mission rather than getting stuck in spreadsheets and manual tracking. 

Partnering with BPM for Sage Intacct implementation 

Implementing an accounting system for your nonprofit requires specialized skills and knowledge to maintain compliance, efficiency, and ease of use. That’s where BPM comes in. 

Our team of Sage Intacct specialists understands the unique challenges of nonprofit financial management and provides end-to-end implementation support. From configuration to training, we support your organization gets the most out of Sage Intacct’s capabilities. We also have an experienced team of accounting professionals who can serve as an extension of your team through our outsourced accounting service offering. 

We work closely with your team to: 

• Configure Sage Intacct to match your specific grant management workflows 
• Integrate with other systems like donor management and CRM platforms 
• Train your staff to maximize the software’s potential 
• Provide ongoing support as your grant portfolio evolves 

With BPM’s guidance, your nonprofit can transform its grant management process, ensuring every dollar is tracked accurately and used effectively to advance your mission. 

Ready to streamline your grant management? 

Don’t let inefficient grant management processes hold your nonprofit back. Contact BPM today to learn how Sage Intacct can support your organization’s financial management needs and help you make a greater impact in your community. 

Our nonprofit accounting specialists are ready to help you implement a solution that brings clarity, compliance, and confidence to your grant management process.