Hello Fundable Friends,
You’ve secured the funding…congratulations! Now comes the crucial part: staying compliant with grant requirements and keeping your organization audit-ready.
Grant compliance isn’t just paperwork; it’s a reflection of your professionalism and trustworthiness. Funders want to know their investment is managed responsibly, and a solid compliance system protects your organization’s reputation and funding future.
This month, we’ll unpack practical strategies to help you navigate grant compliance smoothly and prepare for audits confidently, turning what can seem like a burden into an opportunity to strengthen your operations.
📋 Why Compliance Matters
Compliance is the backbone of successful grant management. Properly following grant rules ensures:
- Continued funding eligibility
- Avoidance of penalties or repayment demands
- Trust and credibility with funders
- Strong organizational controls and accountability
- Smooth audits and reviews
Ignoring compliance can risk your current grants and jeopardize future opportunities.
🛠️ Step 1: Understand Your Grant Requirements Inside and Out
Every grant comes with specific conditions. Start by:
- Carefully reviewing award documents, contracts, and terms
- Highlighting reporting deadlines, allowable expenses, and documentation needed
- Knowing the key compliance areas: financial management, programmatic reporting, and recordkeeping
- Keeping a compliance checklist for each grant
💼 Step 2: Set Up Clear Internal Controls
Strong internal controls prevent errors and fraud:
- Segregate financial duties (e.g., who approves expenses vs. who records them)
- Require multiple approvals for large purchases
- Track expenses in your accounting system with grant-specific codes
- Regularly reconcile grant expenses against budgets and reports
🗂️ Step 3: Maintain Detailed, Organized Records
Good recordkeeping makes reporting and audits easier:
- Save all invoices, receipts, contracts, and correspondence related to the grant
- Keep electronic and physical copies organized by grant and fiscal year
- Document staff time and effort if charged to grants (timesheets, activity logs)
- Use cloud storage or grant management software for easy retrieval
📆 Step 4: Prepare for Reporting & Audits Early
Don’t wait for deadlines or audit notices to scramble:
- Schedule regular internal reviews of grant files and finances
- Conduct mock audits or compliance checks quarterly
- Prepare and submit progress and financial reports on time, with accuracy
- Communicate proactively with funders if challenges arise
🔍 Step 5: Train Your Team
Everyone involved in grant management should understand compliance basics:
- Offer training on grant terms, financial procedures, and documentation standards
- Develop a simple compliance manual or checklist staff can reference
- Foster a culture of transparency and accountability
🔑 Key Compliance Areas to Watch
- Allowable Costs: Know what expenses are permitted under each grant.
- Time and Effort Reporting: Document staff time charged to grants accurately.
- Matching Funds: Track and document any required matching or cost-share contributions.
- Procurement Rules: Follow competitive bidding or purchasing rules when applicable.
- Programmatic Outcomes: Report on agreed-upon deliverables, not just finances.
🛰️ Funding Intel Brief: Funders Value Transparency
Funders increasingly prioritize organizations that demonstrate transparent, responsible management. Clear compliance signals professionalism and builds long-term trust.
💬 Mission Debrief: Your Turn
What challenges have you faced with grant compliance?
How do you keep your team audit-ready and organized?
Leave a comment. I’m here to help you strengthen your systems.
🔭 Next Month’s Issue Preview:
“Maximizing Grant Impact: Measuring Outcomes and Using Data for Growth”
Explore how to collect, analyze, and present data to show your program’s effectiveness and make smarter decisions.
Thank you for being part of the Mission: Fundable community. Stay compliant, stay confident, and keep advancing your mission!
— Allison Boyd | Boyd Grants
Recent Comments