Five ways to help protect grant funding.
Our hearts beat for those we’re trying to help. That’s why last week’s federal fire drill hurt so much. And while the immediate threat of interrupted funding has abated, those recent scares tell us this is no time for complacency.
About three in ten nonprofits rely on federal funds. But shifts in oversight, auditing and grant requirements may impact a much larger swath of organizations. So we should all recognize there’s still time to ballast against further disruption. I’m not advocating an overreaction, but taking a few prudent precautions only makes sense.
I’m sure no one has an appetite for more administrative tasks, so keep it simple and actionable. Even if you aren’t dependent on government funding, here’s a sample five-point plan to help inform a more tailored approach for your cause.
1 |
Conduct internal compliance audits with grant requirements. |
2 |
Enhance documentation standards for expenditures and program outcomes. |
3 |
Revisit your strategic plan to include variable and diversified funding scenarios. |
4 |
Strengthen subrecipient oversight and reporting. |
5 |
Implement an annual public transparency initiative. |
The one certainty is that communications will never be more important. Your leadership team should be involved in setting your organization’s plan. Then the plan can be shared with your staff, board and donors, followed by incremental progress updates. There’s nothing wrong with course corrections along the way, and you can set that expectation.
Status Quo Bias is the natural tendency to resist change and assume past practices will continue. It’s one of the most frequent enemies of progress. Standing ready for potential shifts in funding requirements is the best way to mitigate uncertainty and reactionary missteps. I know this type of exercise isn’t what drew you to your cause. But the work you do is too important not to protect.
Sincerely,
Kevin
