You've been awarded a grant from a foundation. Congrats! Now the real work begins.
In addition to executing the project as written in the proposal, you’re now responsible for continuing to engage and build the relationship with the foundation and your program officer. This starts (but doesn’t end!) with the grant reports.
Reports help the funder understand how work is progressing, the challenges and successes, lessons learned, and how their money is being spent. This is standard practice for foundations, as it builds trust, and shows that grantees are being good stewards of the funds they’ve been granted.
At its best, reporting is an opportunity to build a trustworthy and lasting relationship with a foundation that can lead to more funding. Make the most of it by following their rules, meeting the deadlines, and by going above and beyond when possible.
Most funders request annual reports to include a narrative and budget component showing money spent and money remaining. However, every foundation is different, so be sure to read your grant agreement carefully, highlighting requirements and dates. If there are any questions or areas of ambiguity on the reporting requirements, now is the time to contact the funder for clarification. Doing so will ensure your reporting is executed properly from the start.
Get Organized
We recommend putting reporting due dates on your calendar with a copy of the grant agreement or the specific reporting requirements and any necessary forms into the notes section of the calendar reminder. In addition, you should add a reminder on your calendar with the same information at least six weeks in advance of this due date and begin work on it at this time. If you would like the Foundation Relations team to help you track these deadlines, please contact us, [email protected] with a copy of the reporting requirements.
If the grant agreement only requires a simple narrative report, your award may have been booked as a gift. In this case, you are solely responsible for compiling this report and meeting the deadlines. If your award was processed through the Office of Sponsored Programs, the Post-Award team will be responsible for financial reporting. Find more information about the difference between a gift and a sponsored program here.
Work With the Office of Sponsored Programs (OSP)
We recommend being in touch with your assigned post-award accountant six weeks or more in advance of the reporting deadline to ensure that everyone is on the same page about the requirements, any required forms, the requested or preferred mode of submission (i.e. will you submit it, will they, does it need to be uploaded to an online grant portal), and whether or not there needs to be an earlier internal deadline so that you or your department can review the report in advance of the deadline. Please look here to determine the appropriate post-award accountant for your school, unit, or department.
Additionally, strong accounting practices must be in place from the beginning despite the financial responsibilities of the Office of Sponsored Programs. A few of the most basic, most critical rules include:
- Create a system for tracking your expenses based on the budget submitted to the foundation and ensure that you are not using funds from a grant for items not included in the grant budget or for purposes other than described in the grant narrative.
- Monitor grant expenditures monthly to ensure that over- or under-spending can be addressed before the end of the grant period -- do not rely on others to track it for you.
- If the original budget requires amendments in order to support the purpose of the grant, contact the funder to get permission before making changes.
Excellent stewardship is a vital part of the grant cycle. If your project isn't managed well, foundations may hear about it and become less inclined to fund your work. Late or missing reports are enough to raise red flags, tarnish the relationship, and diminish opportunities for future collaborations, not to mention damage the reputation of the University. The world of philanthropy is small, and word travels far, so it’s important to manage this relationship with great care.
In addition to strong financial practices, keep your funders satisfied and engaged by following these best practices:
- Submit accurate reports on time (this is your number one responsibility and priority).
- Notify OSP and the funder when projects aren't going as planned. Projects may stretch on longer than expected, staff may quit, there may be too little or too much money, etc. Notify the funder of such challenges right away. Depending on the nature of the circumstances, a funder may need to approve changes to the project budget or timeline. Early notification and a collaborative approach will yield positive results more often than not.
- Go above and beyond! Report not only what is required, but additional outcomes, interesting findings, anecdotes, and testimonies from a beneficiary, as applicable.
- Set a reminder to check in with your program officer regularly to discuss issues, ask for feedback, and share information from the field. Encourage an ongoing dialogue to explore issues and solutions.
- Consider inviting the funder for a site visit to show the success of their investment. Contact the Foundations Relations Team for help and to explore options.
- As the end of the grant period approaches, ask for feedback on what the foundation is interested in doing next. Get their input on what other funders want to do. Gauging their interest can inform how to fund your next project.
Being a good steward of the foundation's funds will bolster your and your institution’s reputation, and likely open opportunities to partner on more projects. For help with grant reporting, reach out to us [email protected]. Our team can support you with narrative review, consultation on how to work with a funder when the project is not progressing as planned, and making the most of funder site visits.
Resources
OSP’s website: https://sponsoredprograms.virginia.edu/
Tips for Better Grants Management: https://npengage.com/nonprofit-management/6-tips-for-better-grant-management/