More than half of respondents to our 2016 State of Grant Management survey failed to draw down some of their awarded funds in 2015, and 19% failed to draw down 10% or more.
If your organization fails to meet grant guidelines, it could forfeit awarded money.
Below, we overview how lost grant drawdown impacts budgets and planning.
The Negative Impact of Lost Drawdown
No one wants to lose awarded funds, so how does it happen? Lost drawdown often results from noncompliance, missed deadlines and disorganized processes. Without proper processes and technology in place, it can be difficult to keep tabs on budgets, reporting deadlines and activities. This can lead to setbacks, such as:
- Having to return surplus funds with interest to the awarding agencies.
- Programs or projects that suffer due to lack of funding.
- Inability to receive future funding, as a result of improper allocation.
- Inaccurate fund allocation, budgets and spend.
- Unmet goals, milestones and deliverables.
- Stifled cash flow.
Don’t Leave Money on the Table
To avoid the above setbacks and maximize grant drawdown:
- Map out a concrete plan to meet grant deadlines and allocation calendars.
- Don’t allocate money to projects that weren’t originally outlined in grant parameters. Be mindful of where money is spent.
- Maintain accurate time-and-effort reports.
- Carefully plan cash flow for your grant program, and review cash requirements before each drawdown.
- Track project progress to ensure deadlines are on target to be met.
- Organize all grant-related materials, such as documents, receipts and expenses, in a centralized location (for example within grant management software).
Interested in learning how your organization can maximize grant drawdown? Download our fact sheet for tips.
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