Finding the Best Grant Management Software for Nonprofits

Applying for and managing your grants is an important way for your nonprofit to secure program funding. While hosting fundraisers and collecting donations from supporters can provide your programs with revenue, grant money is often responsible for an equally, if not larger, portion of your budget.

However, applying for grants can be a tedious process. Keeping all your paperwork organized and searching for the information you need about your nonprofit is a very time consuming task if you need to handle it manually. Grantmakers also want to know the funds they provide are being used to do good in your community, so you'll need to keep accurate records on how the money from each individual funding source is being spent.

Nonprofit grant management software can help streamline this process throughout the grant lifecycle. This platform provides grant administration with software tools that simplify the task of writing grants and putting together application packages. You'll be able to create professional-looking applications complete with charts and graphs that show the impact your nonprofit organization is making in your community. This increases the chances that you'll receive funding from the government agency, philanthropic foundation, or corporation offering the funding.

In addition, you'll be able to track the status of the endowments you applied for to see how much funding you can expect to receive. Getting a clear picture of how many grants your nonprofit is writing (and how many it's receiving) also helps determine if your application activities need to be amended.

If you're in the process of renewing an award or if your stakeholders request information about your current activities, management tools help organize this data so you can present it to the grantmakers in a timely manner. Financial data tracking tools help show that your funds are being used properly while also providing insights into how to best use your financial resources.   

Let's examine the features nonprofit organizations need to look for in their grant managing systems. We'll then take a look at the benefits these tools provide to your nonprofit along with a list of the top platforms available for managing grants. From there, we'll discuss the best practices for incorporating these tools into your nonprofit and consider future software trends.     

Features to Look for

With all the advances in automation and artificial intelligence, today's grant management software contains a multitude of tools that can assist in everything from tracking to reporting to compliance management. Rather than get caught up in all the bells and whistles, however, focus on the following important management features.

Grant Tracking Systems

Tracking systems sort, filter, and group data related to your grant activities. This includes data on the endowments you're in the process of writing as well as the funds you're currently using.

This is useful during application. Tracking software keeps all the information on your nonprofit activities in one place, making it easy to access and organize it into new proposals. By automating parts of the application process, your staff can focus more of their attention on writing better proposals instead of hunting for the information you need.

The system can also track applications, alert you to deadlines, set reminders, and keep track of tasks. This enables your team to schedule assignments by which applications need the most attention and inform everyone when key tasks have been completed.   

Compliance Management

Many endowments and awards include compliance regulations that require nonprofits to fulfill specific obligations in order to keep their award. For instance, most nonprofits are limited in the type of purchases they can make with the money and must keep detailed records on how the funds are used. Misuse of funds and.or failure to comply with regulations could result in nonprofits losing key sources of funding.

Your managing platform should include compliance checks that track and make sure your nonprofit's activities are within regulatory requirements. This includes pre and post-award management. Centralized storage also makes it easier to safeguard sensitive information, including your donor data. Compliance management tools also provide alerts for any important tasks, including reminders for activities required to fulfill your obligations.

If you're being audited, tracking systems can access and organize information on your budget and tasks into reports for your stakeholders. This ensures greater transparency between your nonprofit and the grantmakers, fostering a better relationship.

User-Friendly Interface

Grant managing is a complex process that requires keeping track of multiple compliance requirements, deadlines, and program information. Simplify this process for your staff by choosing a system with a user-friendly interface.

This interface shouldn't just be intuitive and easy to navigate -- it should guide users through the necessary steps of the application, highlight important information, and provide helpful reminders about deadlines and requirements. It should also be accessible for a broad number of users by providing screen readers and adjustable font sizes, enabling more people to use your system easily.

When onboarding new staff, the user interface should shorten the learning curve by helping new users understand how to use its tools and perform tasks. The better the user experience, the easier it'll be to implement your software into your organization.

User interfaces help facilitate communication and collaboration between multiple stakeholders -- including applicants, auditors, reviewers, and administrators. Choose a system that provides easy access to shared documents and allows stakeholders to communicate and offer feedback during all stages of the grant management process. 

To choose a good user-friendly interface, look at reviews and testimonials. Did other nonprofit organizations feel the system simplified the grant management process? How easy did it make sharing materials and completing applications? Did it help submit accurate data and reduce errors? All these are good signs of a well-designed user interface.

Security Tools

Many staff members need access to your system, requiring you to keep their data safe from cyberattacks.

Essential functionalities in security systems include:

• Data encryption (make sure both the data stored and the data being transmitted is encrypted)
• Real-time bot protection (analyzes, detects, and blocks unauthorized bot activity)
• Multi-factor authentication (adds an extra layer of security to identity verification)
• Role and permission-based access controls (limits the users who have access to sensitive information)
• Server security

Pay close attention to your vendor's security page -- it should show which security features its software includes along with proof of security. One quick way to see how well a software provider safeguards data is to see if they are  ISO/IEC 27001certified. This is an international standard for information security management.

Grant Database

Some software packages include access to a database that helps you look for new grantors. This can be a huge time saver, especially if the system allows you to get alerts when a foundation's mission and location matches with your nonprofit's. Certain databases also provide insights and data analytics on potential funders, which can increase your success rate. 

Benefits of Using Grants Management Software

Once you've incorporated a good grant management system into your organization, you should start seeing many positive changes. These include:

Better Efficiency

Using software to store, manage, and access the information you need saves your staff the trouble of sorting through hundreds of spreadsheets, emails, calendars, and old documents during your application process. Many systems also provide templates for proposals, further simplifying the process.

This provides your staff with more time to research and write new grants -- a process that can be helped if your system includes a grant database. With more applications being sent out, your nonprofit has a better chance of securing new funding.

Improved Compliance

Managing your existing awards will also become easier. You won't have to worry about missing deadlines since your system will provide automated reminders for any tasks you need to complete to fulfill your obligations.

Grant management tools also helps you prepare for audits by tracking and monitoring your expenditures and budget throughout the year. When you need to report on your activities to stakeholders, the software generates detailed and comprehensive reports you can share with internal staff and auditors. Not only will this make preparing for audits more painless, you'll also be able to make your entire staff aware of any compliance issues before they become a problem.

Improved Tracking and Outcomes

Tracking your expenditures is one of the great benefits of a managing system. Not only is this important for audits you'll also ensure your funding is making the impact you want.

You can keep track how much of your funding is used in each of your programs. You can then set and measure key performance indicators (KPIs) for each program. For instance, if you receive an environmental grant, you can set a KPI for how many trees your program planted or how many kilograms of carbon they helped reduce. By contrast, an education grant KPI might measure how many school supplies you provided at-risk students.

By analyzing these KPIs and sharing your program progress in your reports, you can show grantors their funding is producing the impact they want. This improves your relationship with grantmakers and increases your chances of receiving additional funding.

Analyzing KPIs also reveals if your charity is using the funds adequately or if the money can make a greater impact in a different program. Using your funding in the most optimal way helps relieve budget strain while fulfilling your mission.  

Top Grant Management Software Systems for Nonprofits

Key features, pricing, and ease of use are all important qualities to look for when choosing the right grant management system for your nonprofit. Below, we've listed some of the leading options and the pros and cons of each.

Blackbaud Grantmaking

Blackbaud Grantmaking offers a premium platform for larger nonprofit organizations. Its software offers a wide range of features, including:

• Customizable workflows and automated capabilities for improved productivity
• A grantee portal that facilitates communication between nonprofits and funders
• One central review portal to manage the application review process
• Compliance tracking tools
• Payment schedule tools
• One-click budget reporting

According to Capterra reviews, users find the following pros and cons with Blackbaud Grantmaking:

Pros:

• Charities appreciate the ability to customize dashboards and views for different users
• Can be tailored to manage multiple grants
• Can help improve workflow productivity
• Manages grants from inception to closing

Cons:

• Intended for larger organizations -- can be too feature-heavy for smaller groups
• Some online reviews indicate the pricing can be high
• User interface is not intuitive or easy to navigate, making staff training challenging

Pricing: Organizations need to request a pricing option from the website.

Instrumentl

Instrumentl not only helps you track grants, you can research new ones on the platform as well. Nonprofits enjoy the following features:

• Grant discovery database for finding funders that match your mission and location
• Automated grant search matches organizations to relevant funders
• Task management and automated deadline tracking help workflow

According to Capterra reviews, users find the following pros and cons with Instrumentl:

Pros:

• Customizable search options in the grant database save time
• User friendly software
• Offers funder insights that increase success rates
• Good customer service

Cons:

• Price can be high for smaller organizations

Pricing: Instrumentl offers different pricing plans for nonprofits including Basic, Standard, Advanced, and Pro. Plans range from $179/month to $899/month. 14-day free trial available. 

Grantseeker

Grantseeker provides a platform that aids with grant prospecting as well as management. The software is more affordable than other systems, making it ideal for smaller nonprofits. Features include:

• Tracking software to organize communication, tasks, and deadlines in one location
• Prospecting tool to help with finding new funding sources
• Templates to streamline the application process
• Reporting tools to keep stakeholders informed about funding use

Reviews on GetApp indicate the following pros and cons:

Pros:

• Very affordable compared to other platforms
• User-friendly system
• Cloud-based, making it accessible to anyone with an Internet connection
• Simple and easy layout

Cons:

• Limited to essential features -- does not offer tools like KPI tracker
• Prospecting tool may not be as powerful as other databases 

Pricing: Premium packages are $14.99/month. Prospecting packages are $39.99/month. Enterprise and Government packages require you to call for pricing. 14-day free trial available. 

SmartSimple

SmartSimple provides AI-enriched workflows to enhance your efficiency. Features include:

• Real-time analytics that offer insights into grant data and current trends
• AI assistant that can provide advice during proposal development
• Highly configurable platform which can be tailored to your nonprofit's needs
• Reporting and visualization tools to help with impact assessment 

According to Capterra reviews, users find the following pros and cons with SmartSimple:

Pros:

• Highly customizable platforms lets the software adapt to your business practices instead of the other way around
• Workflows and automation reduce manual work
• User-friendly. Non-IT users can make changes to configuration
• Clean, simple user interface

Cons:

• Can be expensive
• Number of features can be intimidating

Pricing: Organizations must call to discuss pricing options. 

Implementing New Grant Management Systems into Your Program

Incorporating new systems into your existing programs is always difficult. Multiple staff members need to be kept in the loop about the changes. Deadlines need to be established or reworked. And your entire team needs to learn how to use the new tools to build efficiency.

Obviously you want this process to go as smooth as possible. But too many nonprofit organizations rush into implementation without fully considering the needs of their staff or the time it takes for a new system to fully integrate into their day-to-day activities. This can create unstable workflows that persist even after the implementation period ends. 

Don't let this happen to you! To ensure everyone is on the same page when you start implementing your grant management software, follow these best practices:  

Create a Timeline

How much time will everyone involved in the implementation process need to complete their tasks? If you don't know -- or if you haven't yet built a team of employees to help install your new system -- spend some time planning this out before you purchase a subscription. There's no point in paying for something if you're still weeks or months away from being able to properly use it.

Plan your timeline around your grant cycle. For instance, if you know you start applying for funding at the beginning of each year, establish deadlines that ensure your software is up and running by this time and your staff members are fully trained. This will let you begin the application process more smoothly and see how efficient your new management platform makes your organization.

Establish clear deadlines for each task. Review your contract to see what steps your organization is responsible for during the implementation process. Look at your own current grant management practices to see what needs to be worked on. For example, you should know which materials -- including current applications, reports, review forms, correspondence etc. -- need to be transitioned into your new system.

Establish Clear Communication Channels

Introducing new managing practices into your organization can be stressful and confusing for staff members accustomed to old workflows. To make sure everyone is on the same page, you need to facilitate communication -- not only within your own organization but among your staff, stakeholders, and software providers.

Establish a point person who can set up meetings and manage project tasks. Make sure everyone in your organization knows who to contact for questions (and how to best reach them). Update all the members of your team on any progress on or changes to your timeline and let them know when they can expect regular updates. Have your point person communicate with different departments (such as your finance or HR departments) and let them know what tasks they are responsible for and their deadlines.

Let everyone in your departments know when your new system will be established. Make it clear how long they should follow their existing workflows and what changes they'll need to make right now to facilitate the new software system.

Set up meetings with your stakeholders. Inform them of the changes being made to your process. Let them know what this will mean for completing tasks or reviewing applications.

Communicate regularly with your software providers. Share your timeline with them and let them know which deadlines (like the start of your grant application period) are most important. Ask them for regular updates and find a contact person who will inform you of all tasks being completed on their end.   

Integrate Your New Platform With Your Existing System

You likely have existing platforms, such as financial management software or CRM tools, that need to be integrated into your new grant management software. In a best case scenario, this will make your work much easier since all your information can be accessed from a single platform. However, not all software integrates well with other systems.

Prepare for this by selecting a system with integration tools. Make sure it has an established history of integrating with the tools you currently use. Work with your software provider to make sure all your different platforms communicate well with each other and merge smoothly. If you don't, you could have problems with duplicate work and inconsistent data. 

Train Your Staff

Training your staff on how to use your new system is one of the most important steps for adopting grant tools. Learn what training resources your provider is offering. These might be self-paced video tutorials, online classes, or in-person training sessions. Bear in mind that there is a learning curve with most types of new systems, so allot sufficient time for training and reviewing the lessons until your staff is comfortable using the new tools.

Also keep in mind that your staff needs to fulfill their work responsibilities while they're being trained on the new software. Accommodate for their schedules and offer fair compensation for any additional time.

Future Trends to Look For

Technology is constantly advancing, allowing for the regular improvement of grant management solutions. Some of the premium packages today already offer some of the tools listed below and you can expect later versions of nonprofit software to use these emerging technologies in grant management as a regular standard: 

Artificial Intelligence

Artificial intelligence tools help facilitate your grant application process. For instance, the AI assistant provided by SmartSimple offers advice during proposal development, reducing errors and making your application more persuasive to grantors. Other AI tools help automate tasks like reporting, helping with compliance management.   

AI can also be used to visualize how your money is being allocated to your programs and the impact that funding is making in your community. If you find some of your programs are under-performing, AI can help make data-driven decisions on the best use of your resources. Not only does this help you fulfill your mission goals, it also provides you with better results to show your grantors during reviews and audits, increasing your chances of receiving additional funding.

Data Analytics

Data analytics tools allow you to analyze raw data and come up with actionable insights. This is extremely useful in grant management as it helps you improve your success rate.

Nonprofits that use data analytics can present data-driven findings of their programs' effectiveness to grantors. This is much more effective than only using anecdotal storytelling as it offers concrete proof that your programs are making a measurable impact in your community. Being able to show the effectiveness and impact of your efforts in numbers emphasizes the need for your nonprofit programs, making it more likely that you'll receive funding.

Data analytics can also help nonprofits identify shortcomings in their programs. By analyzing data on program and project outcomes, you'll be able to determine which programs require more funding, where resources need to be reallocated, and which projects should be phased out. This allows for better management of your funding, which you'll be able to show in your audit reports. 

Cloud-Based Solutions

More and more platforms are being stored on Internet servers instead of in devices, making collaboration more convenient. Because cloud-based solutions can be accessed from anywhere with an Internet connection, you'll be able to share information with anyone in your team no matter where they are.

This becomes very valuable for coordinating staff members involved in the application process. When it comes time to use your grant funding, your staff can easily submit budgets, update records, and examine the data on their programs in real-time. And during audits, you'll also be able to connect with foundations and report your progress to grantmakers more efficiently. 

While cloud-based solutions are the future of nonprofit software, you'll want to take some precautions. Because your data is so easily shareable, you'll want to invest in good security tools. Be sure to also create regular data back-ups in case of hardware failures, disasters, or cyberattacks. 

Moving Forward

Securing regular grant support remains a top priority for nonprofits that want to keep their programs well-funded. However, with so many nonprofits and charities competing for aid from the same foundations, managing your grant activities is more important than ever.

Investing in a good grant management software platform is vital for not only applying for grants but also managing your existing grant funding. Grant tracking software and AI tools help you organize your information, streamline the application process, and make your proposals more persuasive. Compliance tools remind you of deadlines and help you generate detailed audit reports. And data analytics software helps you analyze how you use your funding and come up with actionable plans to improve your results.

When choosing your system, it's very important to select a platform that fits your needs. Don't get caught up in too many bells and whistles if your nonprofit is small and your managing requirements are basic. At the same time, don't be intimidated by a higher-than-expected price, especially if you determine that the software will increase the number of grants you apply for and help optimize your budget, saving you money.

Be prepared for an adjustment period when you incorporate a new platform into your existing systems. Ensure a smooth transition by blocking out enough time and selecting a system with implementation tools that help it communicate and merge with your existing financial and CRM software. Expect a learning curve as your staff learns to use the new tools and provide enough training and support before your next application cycle begins.

Grant management software is just one of multiple tools nonprofits need to successfully fund their organization. Donor management software and online fundraising platforms also provide valuable support for securing and managing funding, as well as keeping track of donation providers. See how PayBee's fundraising platform can help you connect with new sources of funding -- and how it can be incorporated into your grant management software -- by scheduling a free demo of our software and engaging with our team of experts.  

FAQs

How do I choose the right platform for my nonprofit or foundation?

When selecting a grant management program for your nonprofit, consider the needs of your organization. Are you a small NPO that only needs help with tracking applications and compliance management? Or could you benefit from additional resources, like a grant database, prospect tracking tools, or AI assistants? Keep in mind that this system is meant to save you time and money, so make sure any additional features are worth the cost.

Read online reviews to see how satisfied other nonprofits are with the tools. Did they fulfill their needs? Was the interface user-friendly? Did integrating the software with their existing systems go smoothly or are they still experiencing issues with duplicate data? Is their customer service team helpful? 

Before investing any money, participate in a demo and ask all your questions to the sales team. Consider using a free trial to test out the tools and plan for enough time to implement the system into your organization.  

Are there specific management solutions designed for small nonprofits?

Yes. Platforms like Grantseeker are ideal for smaller nonprofits with subscription prices that start at $14.99/month. While they may not provide all the extra features other packages do, their tools can assist in basic management tasks.

In addition, many companies offer different packages for nonprofits based on their size and specific needs. You can start with a basic package and then upgrade as your needs change.

How much does a managing system typically cost?

Prices for grant management systems vary greatly depending on the number of features they offer and their sophistication. Some nonprofits can pay as little as $14.99/month while other packages go for over $899/month. In certain cases, a nonprofit will need to call the company directly to get a price quote. According to Trust Radius, you can expect to pay anywhere from $55 to $500/month to use your system tools.

Keep in mind that there are free grant management options available, but these tend to provide very basic tools.  

What are some common challenges charities face when managing funding with a platform?

Implementing a grant management system into your nonprofit organization comes with multiple challenges. Nonprofits need to schedule sufficient time for the system to be installed and merged with their existing systems. In addition, staff needs to be trained on the new management tools since there is usually a learning curve. 

Problems arise when nonprofits don't create a clear timeline for the installation, leading to delays where they can pay for a system they're not using, which wastes money. Communication issues between different departments that don't know when the change will take place can lead to inefficient workflows that may persist even after the system is installed. If the system is not compatible with your existing systems, you can experience problems with duplicate data and data migration.

To mitigate these challenges, select a package that can integrate with the type of software you're already using. Work with the provider, your staff, and your stakeholders to build a stable timeline that keeps everyone on task during the installation. Establish a point person who can answer questions about the new system and provide updates. And schedule your implementation so that it's ready for your next grant cycle and you can test how the new tools increase your efficiency.

Can managing platforms integrate with other tools we already use?

Yes. Grant management software can integrate with online tools like Microsoft 365, Google Drive, and One Drive. You can also merge your current financial and CRM software with your grant management system, storing all your documents in one place. 

This makes it easy to access and share information among your staff members and external stakeholders. You also won't have to update all your information on multiple platforms, saving you time.

However, make sure to invest in software that has integration capabilities so your data remains consistent. Spend time talking to your provider to learn if their platform is compatible with your current systems. Learning all this ahead of time helps ensure a smoother transition.