With 2014 just around the corner, many nonprofits and government entities are budgeting for the next fiscal year. While doing so, look ahead at how the changing landscape of grant management can affect projected budgets and resource allocation.
Potential Regulation Changes
On November 19, the DATA Act passed in the House. The legislation, which brings new federal spending regulation, standardization and compliance measures, has a high probability of passing in the Senate.
When it does, the new law will usher in stricter compliance requirements for grant recipients, which will require a more organized reporting system.
While it could be five years until the law is fully realized, changes are “already starting, in anticipation of the bill’s passage,” according to Jesse Buggs, director of the Office of Grant Development & Administration, City Bowie, Maryland.
What Does this Mean for You?
The DATA Act, if passed, will impact the current processes and procedures under which nonprofits and government entities operate. Ninety-seven percent of survey respondents stated that they use ad hoc tools—such as spreadsheets and filing—to manage and maintain important funding documents.
However, the legislation requires advanced reporting and data insight from grant recipients for compliance. Ad hoc tools are not designed to support this level of transparency, which could make future audits extremely time-intensive if processes don’t evolve.
Buggs states, “The increases in automation and breadth of data collection will require recipients of federal funding to systematize their offices.”
Technology solutions can alleviate the new burdens associated with stricter reporting and compliance regulations.
By replacing tedious data collection and reporting tasks with automated solutions, grant managers are given the opportunity to devote saved resources to revenue-generating activities. We found that organizations who adopt grant management software reduce administrative time by an average of 72%.
When projecting your 2014 budget, take into account the benefits technology can provide in terms of capacity. Consider too how this could impact the priorities, tasks and strategies that your grant office will undergo in 2014. Smart technology investments today could reap great financial rewards.
Evolving the Grant Manager’s Role
Grant managers should familiarize themselves with new reporting standards in order to stay ahead of the curve. To prepare for expected compliance changes, base your financial and record keeping systems around audit success.
With early preparation, you can soften the impact that regulation changes could have on your organization.
Has your organization taken the changing roles in grant management into consideration for 2014 planning?
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Board portals have clear benefits for board members and organizations, including streamlined efforts, consolidated documents, universal access and increased communication.
Together, this boosts productivity and influences the overall effectiveness of a board.
So how do you get your board to adopt? It starts with an understanding of the stakeholders.
Understand Your Audience
A board’s demographic influences the projected adoption rate of a board portal and technology innovation as a whole.
Nonprofit boards are comprised mainly of members aged 50-64 (43%) and 40-49 (28%). Generally speaking, each generation reacts differently to technology implementation. Therefore, you must take into account your board membership and how to best manage potential resistance.
Generation X (Born 1965 – 1980)
Generation X, as a whole, is more willing and open to the idea of technology for streamlined efforts and communication purposes. Convenience is the driving force behind the use of technology in their daily lives. To convince them of board portal adoption, focus on the following benefits:
- A consolidated location for important documents, providing increased accessibility.
- Better communication for improved engagement and streamlined projects.
- Increased accountability and transparent agendas through central management of responsibilities and activities.
If any of your board falls into this age group, note that technology is not a threat to them. Most Generation Xers simply want a clear, concise reason why the technology is needed before they will consider adoption.
The Baby Boomer Generation (Born 1946 – 1964)
Generally, Baby Boomers hold face-to-face communication in high regard. For this demographic, increased online communication may not be as highly valued of a feature in a board portal, as it would be for Generation X. However, adoption of technology to improve quality of life is an intriguing benefit to them.
Rob Sinclair, director of Accessibility at Microsoft, explains that Baby Boomers put high value on technology that is “safe, easy to use and flexible enough to adapt to their individual needs.” Therefore, when selling the value to this age group, focus on the functionality that meets those needs, such as:
- SSL encrypted data storage, which allows your documents and communication to be saved on a secure network so that only your board can see it.
- Ease of use; board portal interfaces are comparable to the simplicity of social networking sites—of which 60% of people aged 50 to 64 use.
- Training and onboarding support; best vendors will offer demos and support to ease the transition for your board.
Board portals promote efficiency and engagement. Each member will have a different outlook on the use of technology to achieve these goals. However, with proper guidance and the right partner, boards will realize the benefits of seamless adoption.
Is your board ready to adopt and integrate the benefits of a board portal?
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You have championed the growth of revenue and capacity in your organization. Or, perhaps you are planning to position your organization to allow for such growth.
Nonprofit grant management can vary drastically from each end of the spectrum. Larger nonprofits often oversee sub-recipients and complex grant reporting requirement on a daily basis, whereas smaller counterparts may have just a couple grants to track.
With either scenario, grant management software is an appropriate solution for creating efficiencies, ensuring compliance and growing revenue. Just be sure to select a platform that can scale with your organization as it expands.
Plan For the Future: What Smaller Nonprofits Can Do Now to Prepare for Expansion
Currently, many smaller nonprofits are able to use ad hoc spreadsheets and documents in order to keep track of grants and still comply with regulations. However, as you scale your organization and increase grant award victories, these ad hoc systems become limiting. The more grants you manage, the harder and more time intensive it becomes to gather and track all the information necessary for reporting—e.g. receipts, timesheets, project results, sub-recipient performance, etc.
If you have big plans for the future of your organization, don’t let an overwhelmed grant management department be the reason to slow the engines. Technology solutions such as grant management software have been created with this very end goal in mind, and early integration allows your nonprofit to grow steadily.
When evaluating options, some nonprofits look for a simple and functional system, which is important, but it is also vital to find a solution that can grow with you. This way, you can maintain growth and ensure technology continuity.
Choose A Grant Management Solution That Can Grow With You
Not all grant management software is created equal. As you weigh your options amongst various venders, keep in mind the platform’s ability to scale with your growth.
The following factors all increase in importance as you expand:
- Demand for efficient workflows to manage and report on larger, more complex grants
- Addition of sub-recipients and vendors, which requires more oversight
- Increased data collection from multiple stakeholders and internal departments
- The changing landscape of grant reporting, and its impact on fund transparency
To meet these needs, select a provider that will be around as long as you will—think financial stability, innovation and good business practices.
From a technology side, cloud-based solutions scale their infrastructure on their own, so you don’t have to worry about it. This makes them a good choice for continuity. Look also for solutions that have built-in flexibility, such as add-on modules that allow you to pick and choose the best features for your organization. This gives you the freedom to have a tailored solution that fits your unique growth pattern and needs.
Weigh your needs of today against your needs of three years from today. A grant management solution can be the dynamic and evolving tool to help you achieve growth ambitions.
Share your nonprofit growth stories in the comments section below, or download our Grant Management Software Evaluation Guide to assess your organization’s grant management technology needs.
With a firm pulse on industry trends, board members can better achieve good governance, lead their organizations into the future and serve the nonprofit’s mission.
Guide your organization in the right direction by keeping a mindful eye on the following:
1. Growing Need for Improved Communication and Transparency
A 2013 study from Deloitte and the Society of Corporate Secretaries and Governance Professionals “shows that board members are really working on enhancing their interactions with each other and with shareholders, which goes along with wider trends related to facility of communication.”
Today, many boards communicate via email, mailed notices and memos. Yet, this form of communication can distance board members, and leave room for oversight and misinterpretation. The result is muddied responsibilities, lack of accountability and unclear goals among board members—all of which can then trickle down and surface in external stakeholder communications.
The study cited 35% of boards having taken steps to encourage more transparent, open communication in 2013—up 5% from 2012. We suspect this trend to continue into 2014 in the face of economic and federal budget uncertainty, which could lead to increased scrutiny from donors and the public on the use of funds and ROI.
2. The Diversity Divide is Still Very Real
Nearly 80% of corporate and nonprofit board members said that less than a quarter of their boards are composed of minorities or women.
Vernetta Walker, vice president of consulting and training at BoardSource expresses her concern about the stagnancy of board diversity in an Association Now article: “What we have seen over the last 20 years is that it hasn’t changed a lot… About 20 years ago [nonprofit boards] were 86 percent Caucasian, and in our 2012 Nonprofit Governance Index, that number dropped to about 82 percent.”
These statistics are troubling to many. Diversity among board members provides nonprofits with differing viewpoints, extended networks and varied experiences—all of which help the organization better serve its mission.
Now is the time to tackle the lack of board diversity. Strategize ways to make your board a more inviting and open atmosphere for all races and genders, and reap the benefits.
3. Technology Opportunities Abound; Benefits Plentiful
With the prevalence of technology today, it is hard to find an industry that has not been affected by it. Nonprofits are no exception.
Social media, mobile, analytics, big data and the cloud are just some of the technology trends that nonprofits need to keep a close eye on as they devise strategies.
As technology evolutions continue to permeate the nonprofit landscape, so too do opportunities to better connect with donors and stakeholders, cultivate awareness and create organizational operational efficiencies.
Board members need to keep pace, and demand nonprofit executives to research technology as a way to improve existing outreach and processes. Do the research. Ask smart questions, and ensure your organization doesn’t get left behind as technology moves full speed ahead.
4. Fraud to Become Easier to Detect
Impending grant reporting changes are not isolated to grant managers. New regulations being reviewed in the Senate would also affect boards and how they should govern.
With greater regulation expected and more eyes watching where federal funds are spent, boards’ fiduciary responsibilities increase.
While it has always been the board’s job to make sure that the organization is financial accountable, legislation will make it easier than ever to detect fraud and misuse of federal funds. To maintain compliance and guarantee future funding, nonprofits must build their operations on honest business practices and the efficient use of funds—this starts at the top.
What trends have you noticed? What is your board doing to keep ahead of the curve?
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With new open data laws expected to pass in Washington, there has been much buzz around how these policies will impact grant management processes.
In a nutshell: To effectively monitor grant performance and maintain compliance, organizations will need to systemize and automate data collection and reporting. Both grant funders and recipients will be affected by these changes—government agencies and nonprofits alike.
Laying the Foundation
Demands for transparent and accessible government spending resources have pushed government officials and interested parties to draft legislation that would make this possible: most notably, the DATA Act.
If passed, the DATA Act will require standardized processes to report grant data. The result of which will be clear insight into federal spending through aggregated reports.
What Will Change
As the DATA Act continues to move through Washington, the Office of Management and Budget (OMB) will need to adapt regulation standards to comply with stricter conditions. Changes will be seen across cost principles, administrative and audit requirements, and will include:
- Increased compliance regulations to fit standardized processes
- Firmer reporting requirements
- Increased frequency of reporting
- Machine readable data reporting
The breadth of new compliance requirements will leave grant managers with more tasks and roles than ever before. However, this does not mean grant management needs to be more time consuming.
The New Grant Manager
As the environment and nature of your business changes, so too must your operations. Grant managers need to be proactive in onboarding new tools and processes to make a seamless transition into the new era of reporting.
In a survey we conducted, it was found that 97% of grant management offices use ad hoc ‘systems’ such as spreadsheets, word processing documents and file folders to keep important documents pieced together. These systems, however, are not designed nor equipped to efficiently manage increased reporting requirements coming down the pike.
To stay compliant, on track, and organized, public entities and nonprofits should consider grant management software to more readily meet new mandates. Such software enables you to consolidate important documents, schedule reminders and deadlines to ensure compliance, and ready data for machine-readable reporting. Cloud-based solutions also allow you to access the information from anywhere with an Internet connection, and are easy to implement with little-to-no added infrastructure for your organization.
To learn more about the changing landscape of federal reporting, please download our free whitepaper.
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As your organization arms its current board, also keep an eye on the board of tomorrow. Aid the education of youth and prepare them for possible board involvement later.
The 2011/12 National Survey of Children's Health, results found that 78.8% of youths ages 12 to 17 are involved in community service in some capacity. This suggests that younger generations are seeking civic engagement.
Yet, in a study conducted by The Bridgespan Group, 594 nonprofit leaders disagreed with the statement: "Our organization is highly effective in developing a strong internal and external pipeline of future leaders."
Nonprofit organizations have the unique opportunity to engage with younger audiences to develop, and nurture, lifelong supporters.
It’s never too early to begin future-proofing your nonprofit board; here’s how.
Invest in Youth Programs and Engagement
By providing involvement opportunities in philanthropy, governance and general community outreach, your organization can empower young leaders. Hands-on learning and experience imprints young minds, helping them understand the importance of nonprofit and charity work.
Embrace youth involvement to provide your organization with more diverse points of views and a wider volunteer base.
Investing time and energy into youth programs can also yield benefits for organizations that are worried about long-term sustainability and vitality of goals and mission. Encourage youth groups to adopt your organization’s values now with the hope they will continue to support your mission as they age.
Implement Junior or Young Advisory Boards
Some organizations have already successfully begun influencing youths toward a better understanding of board processes and governance.
Most notably, the Girl Scouts of Eastern Pennsylvania allow girls age 14 and up to serve on the board as “Girl Advisors to the Board of Directors.” Through this program, girls have a voice in organizational decisions and the ability to influence agendas, actions and implementation.
As stated In Nonprofit Quarterly: “These girls hold the same position as the adult delegates, and are expected to apply the same diligence to studying the issues before voting.”
Like the Girl Scouts of Eastern Pennsylvania, create direct serve opportunities for teens to grow with your organization. In addition to programs targeting youth, add leadership groups for college students and/or a Young Advisory Board for young professionals. This way, individuals have a path to follow to progress into your nonprofit’s leadership roles.
Also, consider inviting members of Young Advisory Boards or student groups to attend board meetings. This gives them an insider’s look into governance opportunities, and demonstrates that you value their opinions and ideas.
Create an Attractive Environment for the Next Generation
Upcoming generations are a more tech-savvy demographic than their predecessors. Constant exposure to technology has led to a lifestyle of being ‘always-on’ and hyper-connected.
With these generational differences come both challenges and opportunities. For one, this generation will bring innovative thought processes, solutions and ideas with fresh sets of eyes. However, due to their attachment to technology, organizations may need to adjust their current processes to entice participation.
To prepare for your future board, start thinking now about how technology can make communication and collaboration easier among members. Tomorrow’s leaders will expect the connectedness they experience today in their personal lives to carry over into business and volunteer experiences.
Better connect with, and prepare, the boards of tomorrow, and arm your organization with a strong pipeline of talented and dedicated members.
What is your organization’s stance on early involvement?
As you engage your future board, don't forget to engage your current board. Board engagement is vital to the success of board agendas and missions:
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Government initiatives, like the DATA Act, would provide greater transparency into federal spending, higher levels of accountability and better fraud detection.
These new standards, however, have a direct impact on both the grantors and recipients of federal dollars—adding another layer of complexity to an already complex system.
Is your organization prepared?
Here’s what you need to know about the changing face of grant reporting:
Why Data Reform is Necessary
The 2008 recession, misuse of funds during Hurricane Katrina relief and recent federal budget cuts have left taxpayers and some government officials demanding more transparent processes to track government spending.
Current data collection procedures are not uniformed across agencies. Information is fragmented—stored across various databases and in incompatible formats. This makes it impossible to aggregate ROI reporting and leaves funds susceptible to misuse.
A centralized federal database is needed to make transparency, accountability and fraud detection possible. This starts with the standardization of data.
How the DATA Act Impacts Grant Reporting
Calling for a public and accessible view of government spending, the DATA Act is the driving legislation behind grant reporting reforms.
In its current form, the DATA Act would put the Treasury Department in charge of creating standard data requirements for reporting federal dollars, so that data can be aggregated, reconciled and published. In addition, an advanced analytics platform will be used to seek out waste and fraud across all federal spending.
As a result, grant managers must adopt new strategies to win funds, drive revenue, increase capacity and improve compliance
Reform’s Impact on Grant Managers
Don’t be left behind. Proactive agencies and organizations have taken note of impending changes and have already begun to reform their systems and processes. Others should follow suit and develop more organized, automated methods to track spending and fund allocation.
Grant managers must understand reporting standards, and build their financial and record-keeping systems around them. With books in order, reporting becomes easier and more time efficient.
Also, with greater insight into ROI, performance-based grant distribution is on the horizon. The sooner recipients can track money spent to actual results, the better their organization will be at winning future funding.
How Reform Can Benefit You
As mentioned above, better reporting will allow future funds to be awarded based on historical effectiveness of grantees. If your agency is able to show consistent success and appropriate allotment of grant dollars, you gain a leg up in the fight for future funds.
But that’s not all—data standardization and automation advancements could extend efficiencies into your organization’s reporting processes.
Free Whitepaper: Insights from the Experts
For more on the changing landscape of federal reporting requirements and data transparency standards, download our whitepaper.
Within it, you’ll find insights from those in the trenches, including:
- Michael Wood, former executive director of the Recovery Accountability and Transparency Board
- Hudson Hollister, founder and executive director of the Data Transparency Coalition
- Jesse Buggs, director of the Office of Grant Development & Administration, City of Bowie, Maryland.
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We are excited to announce the launch of AmpliFund 4.0! This completely revamped grant management platform gives grant managers far greater control over the grant lifecycle, streamlines processes and ensures compliance. All of this results in more revenue generation for your organization. Read on for details.
Increased Flexibility and Control
No two organizations are the same. This is why AmpliFund 4.0 was designed with far greater flexibility in mind. Easily adapt the platform to meet unique management and reporting needs. Everything from project and fund mapping to reports generated can be tweaked to make sure you have the information you need, when you need it.
- Track budgets and performance at the fund, fund distribution, grant and project levels. No matter how you need to see financials and success, you’re covered.
- Enjoy added flexibility in how you can map projects to grants. Previously, you could link multiple grants to one project. Now, you can also segment one large grant into smaller projects, giving you even more powerful tracking capabilities.
- Track cash receipts from multiple fund sources into one fund, then distribute via one or more grants. Funders can now easily track money coming in and out of the fund—across multiple fund sources and award recipients.
AmpliFund 4.0 helps grant managers get more done in less time. With fewer resources spent on administrative tasks, staff can dedicate more effort into achieving grant goals and obtaining additional grant funding.
- Foster organization-wide system adoption thanks to a new, intuitive user interface and step-by-step guides.
- Keep track of multiple grants, grant goals and budget items all in one location, eliminating the need to keep multiple Excel spreadsheet versions updated.
- Grant access to sub-recipients and vendors to minimize manual data collection.
- Hold internal and external parties responsible for tasks assigned to them through built-in calendars and automated reminders.
- Apply powerful list filters to view only the data most pertinent to you at that moment, and then save them for easy access later.
StreamLink Software was one of only a few vendors to work closely with the Recovery Board on the Grants Reporting Information Project (GRIP), which is a large part of the DATA (Digital Accountability and Transparency) Act. This has afforded us valuable insight into planned regulations, which we’ve used to help guide the creation of AmpliFund 4.0. This translates to better compliance for your organization both now and in the future.
- Gain valuable oversight on the performance and budget activities of consortia grants. Lead recipients can easily assign responsibilities and track performance of sub-recipients to ensure grant parameters are met.
- Avoid the headaches associated with producing after-the-fact documentation of time and effort put in by staff, especially those working across multiple grants.
- Easily generate downloadable reports of financial and performance data to share with funders and auditors. Information can be sliced and diced in an unlimited amount of ways to meet your exact reporting requirements.
Interested in learning more?
Think about how much paper you use for board meetings throughout the year. Pamphlets, handouts, printing costs, envelopes and postage all add up both financially and environmentally.
Studies estimate that 10 to 30 percent of paper usage can be reduced through the strategic implementation of technology.
Technology solutions, like board portals, eliminate wasted resources and help your board adopt more efficient, green processes.
Reduction of paper waste yields financial benefits. A byproduct of waste is inefficiency. Whether it is time allocated to locate documents or funds spent on paper resources, waste is toxic to any nonprofit’s efforts.
Instead of spending money on paper, ink and shipping, do more with less and apply that money to activities that further your organization’s mission.
Financial benefits go beyond these supply savings too. Board efficiency sees maximum potential when important documents are provided in an easily accessible manner. Lost materials can derail meetings and leave members unprepared—a common outcome of paper-based processes.
With a board portal in place, board members no longer have to remember to bring documents or rummage through piles to find them. Instead, each member has a unique login to a secure site where meeting information is stored. This increased efficiency allows for more time to be allocated toward revenue-generating discussions.
As you revise processes to allow for the financial benefits associated with cutting paper usage, also consider the environmental ones.
With half of the world’s tropical forests already cleared, the classic tale of The Lorax seems to be a not so distant fate. While the root cause of deforestation lies in metropolitan settlements and agriculture, thirty percent of trees harvested in the United States are manufactured into paper goods.
Paper also plays a large and direct role in the landfill crisis. Thirty-two percent of landfills are made up of paper goods, which emit toxins as they degrade.
The case for more environmentally friendly processes is proven and justified. Reduction of paper usage, even in the smallest of ways, can end unnecessary waste. Available technologies provide simple solutions to put your organization on the green track.
The Paper Adds Up: A Look at the Numbers
Imagine the situation using board and committee packets as examples. Once all committee reports, finances and other pertinent data are included, it’s not uncommon for foundations and colleges to have upward of 100 pages per board packet and 10 pages per committee packet.
Based on industry benchmarks, we estimate that nonprofits spend $1,343.34 on paper annually for these packets alone, or $83.96 per board member.
Note: This does not include misprints or labor costs, or productivity and profit gains seen through more effective use of time and resources. Oberlin College analyzed the cost of printing, binding and mailing board and committee packets to its members, and found it cost $300 per year per member once all factors were included.
Paper Used — Board Meetings:
Board packet (pages)* = 100
Total pages of paper per meeting = 1,600
Board meetings per year (average) = 7.1
Pages of paper per board meeting = 1,600
Total pages of paper per year = 11,360
Paper Used — Committee Meetings:
Committee packet (pages)* = 10
Number of people per committee** = 3
Total pages of paper per meeting = 30
Number of committees (average) = 5.5
Committee meetings per year*** = 12
Total number of meetings = 66
Total number of meetings = 66
Pages of paper per committee meeting = 30
Total pages of paper per year = 1,980
Estimated Paper Costs:
Purchase cost per sheet of paper = $0.003
Printing cost per sheet of paper = $0.03
Mailing cost per sheet of paper = $0.06
Short term storage cost per sheet of paper = $0.0067
Disposal costs per sheet of paper = $0.001
Total cost per sheet of paper = $0.1007
Total pages of paper per year = 13,340
Total cost per sheet of paper = $.1007
Total annual paper cost = $1,343.34
Those same 13,340 sheets of paper translate into 1.6 trees.
Sheets of paper from 1 tree = 8,333
Total pages of paper per year = 13,340
Number of trees used annually = 1.6
This example looks at one tiny piece of the paper equation to show how costs and environmental factors can add up even in the smallest of ways.
Think about all the paper your organization uses to manage its operations and communication on an annual basis. Are there ways you can cut back to save?
Here at StreamLink Software, we have taken the pledge to run a greener operation, have you? Schedule a demo of BoardMax to learn how you can achieve a paperless board.
* Estimates based on the number of files uploaded to BoardMax by our customer base.
** Uses average board size (16) and average number of committees (5.5) data, and then assumes that each person only serves on one committee.
*** Assumes committees meet monthly.
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The first round of sequester cuts began on March 1, 2013 as part of a provision in the Budget Control Act of 2011 (also known as the debt-ceiling compromise). They were enacted mainly due to a lack of compromise between Republican and Democrat parties on the fiscal budget.
The sequestration, which arbitrarily cuts government funding across the board, has had damning effects on both nonprofits and the communities they serve. Exacerbated by the recent government shutdown, many nonprofits are without the funds needed to respond to growing service demands.
Budgeting for fiscal year 2014 would reevaluate the sequester cuts. However, in the wake of the government shutdown, these talks remain stagnant. While the government reopened, no decision was made on the mandatory spending cuts, keeping them in place until at least Jan. 15, 2014.
Immediate Impact on Nonprofits
Even before the sequestration hit, many government entities were failing to pay nonprofits in a timely manner as established by their agreed-upon contracts. According to a National Council of Nonprofits article, 68% of nonprofits with government contracts reported problems with performing services due to breached contracts.
The sequestration could worsen the situation. For example, according to a USA Today article, it is estimated that states may lose $4.2 billion with federal funding cuts in 2014. Yet, “because states have already enacted their fiscal year 2014 budgets, a second round of sequestration would force them to make changes on the fly.” While the ball is still in the court, this could mean cutting back on grant money previously offered.
When the government fails to pay, nonprofits need to look elsewhere in order to fill budget gaps. Time and energy are shifted from carrying out services to finding funds.
Government cuts have limited the number of government grants available, and reduced or shortened others. As an example, FEMA cut state and local grant funding by more than $100 million this past March. With competition for funding fierce, nonprofits that can tie activities to performance have a clear advantage.
Nonprofits with direct government funding must plan budgets accordingly due to uncertainty of payments and cuts. This affects their abilities to carry out planned services, and forces organizations to again focus energies on fundraising.
Indirect Impact on Nonprofits
The burden of the sequestration does not fall solely on the nonprofits that receive direct funding from the government. The brunt is felt by all nonprofits that need to step in for the government in areas they can no longer fulfill.
Nonprofits have increasingly been looked upon to fill gaps created by government defunding, causing an uptick in service demands. As explained in Associations Now: “When government stops, payments aren’t delayed only to nonprofits. Programs that provide food stamps, housing vouchers, and veterans services will also grind to a halt, which creates a vicious cycle for nonprofits.“
This, in turn, forces nonprofits to have a better understanding holistically of where funds are used throughout their organizations and how they are being allocated. It also forces organizations to become more efficient at raising funds and managing operations. Nonprofits are feeling the pressure more than ever to step in where government no longer can/will.
How has the sequestration and recent government shutdown affected you?
For a look at how to maximize your nonprofit’s capacity, efficiency and grant ROI, read our ebook, Finding Your Grant Management Software ROI.
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