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How to Manage Grant Funding so Your Project Doesn’t Go Over Budget
Once you secure grant funding, following correct management procedures is crucial. Grant staff and administrators are responsible for distributing funds properly and following necessary compliance rules. Without tracking tools and financial records, recipients might exceed their project budgets.
Correct grant management helps you complete programs and integrate new ones, aiding your organization’s success. A variety of tools, like grant management software, can help your organization upgrade procedures.
Read on to learn more about how to manage grant funding.
Common Reasons Grant-Funded Projects Run Out of Money
From researching how to get a grant for a project to organizing funds, grant managers have many responsibilities in the grant management process. Your organization is accountable for every purchase you make with the funding, making thorough tracking essential.
Some grant managers find themselves going over budget with funding, forcing their projects to a halt. You could run out of money for a variety of reasons, like:
Overspending right away: It’s exciting to receive grant funds and plan for upcoming projects. Sometimes, recipients are so eager to begin that they spend too much at the beginning of a project. They might also forget to record their expenditures properly, leading to a lack of funds later. If you start an activity by overspending, these habits could continue throughout the rest of the project until you run out of money.
Overplanning for future use: Your grant money could run out if your project scope doesn’t match your funding size. You might add to a project without thoroughly checking how the additions affect the budget. Without the right tracking, you could finish the available funding before reaching project completion.
Overspreading funds across your organization: Your organization likely has ongoing costs in addition to project expenses. Indirect costs can include facility management, equipment expenses, employee paychecks and other costs. If you spread the grant funds too widely across your organization, you might finish your funding before you complete a project.
How Grant Mismanagement Affects Your Organization
To ensure you are managing grant funds correctly, monitor spending closely. It’s important to keep receipts, proof-of-purchase documents, and other accounting information. As you use grant money, you should update your documentation right away.
Thorough monitoring requires a consistent schedule and methods. Without the correct management procedures, your organization could face negatives like:
Going over budget: Your funding approach could affect your entire financial situation. Mismanagement of funds could cause your organization to go over budget. Without enough resources, it could be challenging to pay for ongoing facility costs or other expenses.
Project discontinuation: If you organize funds incorrectly and run out of money before a project ends, you might have to cancel it entirely. Grant funds can help a wide range of programs, from nonprofit goals to government services. Grant mismanagement could cause these valuable resources to discontinue, and users that rely on grant-funded services could lose access to important tools. For example, a grant foundation might fund a project for youth enrichment opportunities. If the funds run out, the kids won’t have access to these important learning resources.
Loss of reimbursements: Many grants offer reimbursements for project-related expenses. If you don’t meet a certain set of requirements, you might lose your ability to receive these repayments. Spending too much before completing the project might contradict your initial agreement. You would have to make up for these costs in addition to overspending on your project.
Audits: Overspending or incorrect management can also lead to additional audits. These financial investigations require accurate documentation and protocols, which might be challenging if you haven’t tracked your expenses properly.
How IGX Solutions Software Can Help With Grant Management
Correct grant management is essential for your organization’s success. If you want to upgrade your tracking procedures, switching to an online grant management system can help.
IGX Solutions is a leading provider of grant management tools. With our IntelliGrants IGX software, you can transform your grant organization methods and maintain accurate spending.
IntelliGrants IGX software features:
Advanced fiscal reporting: The system contains a thorough grant accounting software application, tracking all of your expenses and data with ease. You can view detailed reports on spending and ensure you stay on track for project goals. Our web-based system is easy to use, centralizing your data into one accessible interface.
Detailed data management: IntelliGrants IGX software can help you manage grant data and improve accuracy. Automated features perform calculations and eliminate incomplete or duplicate entries. Without the risk of human error, your data accuracy increases, helping you keep track of funds.
Customizable capabilities: We understand that different grant managers and projects require separate tracking needs. You can adjust our web-based templates and interfaces to match your internal processes. IntelliGrants IGX is also fully scalable. As your organizational needs change, you can add to the program to meet new requirements. Additionally, IntelliGrants IGX allows for integration, making it simple to link your existing applications to the software. You can create a comprehensive grant management solution across all platforms and devices.
Streamlined workflows: The software’s automated tools boost productivity across your team. Let IntelliGrants IGX complete previously manual tasks while you focus on higher-priority project needs. In turn, your organization becomes more likely to meet project deadlines.
Enhanced security: Grant documentation contains sensitive data, making the proper security features essential. IntelliGrants IGX has components like multifactor authentication and user access privileges, which ensure your grant information remains secure.
Ongoing support: IGX Solutions is dedicated to providing high-quality grant management solutions. We can guide you through the installment process, answering any questions along the way. We’re always just a call away, ready to troubleshoot and provide answers.
Overall, IntelliGrants IGX software can help you meet important deadlines and stay on track with expenses. You can approach projects with an organized and precise tracking system. By managing your funds, you won’t have to worry about knowing what to do when your project is over budget.
Book a Demo With IGX Solutions Today
At IGX Solutions, we understand the importance of proper grant management. Inaccurate tracking could lead to unfulfilled programs, a lack of resources and more negative impacts. We’re dedicated to helping clients find the best grant management software solution. With our IntelliGrants IGX software, you can maintain accuracy with every aspect of grant spending.
If you’re ready to try IntelliGrants IGX software, book a demo with us today. Experience our software firsthand with our live, web-based demonstrations.