Manual grant management systems aren’t suitable for meeting the demands of nonprofits, government entities or individuals. Managing grant data in Excel and Word results in inefficient processes, missed revenue potential, and insufficient reporting, integrations and project management tools.
Simultaneously, the government has established new compliance and transparency standards—including the DATA Act, Treasury “Do Not Pay” initiative and Uniform Grant Guidance—for organizations to follow. These place added pressure on nonprofits to automate data collection, management and reporting for compliance reasons.
As such, employees working with grant data daily are in search of guidance and a solution. At the 2015 Grant Professionals Association (GPA) annual conference, StreamLink Software CEO, Adam Roth, overviewed key legislative changes, and how grant management software can help simplify the role of the grant manager.
Major Market Drivers Behind Grant Management
New legislation promotes the use of machine-readable data (or data that can easily be read by a computer). Reporting grant information in this format would enable government funders to easily aggregate, compare, analyze and publish spend details by grant. This would result in increased transparency, improved spending oversight, and mitigation of fraud, waste and abuse.
These legislative changes, however, will require organizations to update their business practices to remain compliant. In particular, information will need to be captured as data rather than attachments and processes streamlined—feats best accomplished by technology. Organizations that adopt grant management software will gain a competitive advantage, in that they can simplify administration processes and effectively demonstrate performance history.
Choosing Your Grant Management Software
Organizations have two options for grant management software—1) traditional technology solutions, such as ERP, financial and CRM products, or 2) custom-made solutions. The former are typically inadequate since they focus on the organization, not the grant itself, are costly to update, customize and maintain, and do not allow for the movement of data. A custom-built solution is much more advantageous.
It provides a highly automated system that centralizes and standardizes information as data, and allows for easy report generation and performance tracking. These solutions are also equipped to effectively manage complex grants.
For the full GPA presentation, view the slide deck below.
Download The Grant Software Implementation Guide to learn best practices for introducing grant management software into your organization.
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