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Pass-through grants are an excellent funding source for groups looking to promote community initiatives. While pass-through grants are a great tool for getting funds where they’re needed, recipients must know how to manage them. Proper management helps make funding more impactful and can help ensure your organization secure funding in the future.
Let’s take a look at grant management for pass-through grants and what you need to know about this type of funding.
Pass-through grants start with the federal government, which uses an intermediary, like a nonprofit or state government agency, to distribute the funds. The intermediaries then take the money and give it to local organizations that need it. Here’s a more in-depth overview of the roles of each party involved in a pass-through grant:
Since the federal government usually hands out pass-through grants to intermediaries, there might be distribution rules. However, using local connections to give out grant money allows this money to get to where it’s most needed. Additionally, intermediaries may have to match the pass-through grant with some of their own money to qualify.
Overall, pass-through grants help take federal money and send it to places that will benefit from it most.
Pass-through grants can be an effective tool when managed correctly. Giving local groups funding encourages equitable growth and helps promote community trust. When the federal government lacks the expertise or administration to handle a grant effectively, it turns to pass-through grant recipients for help.
Here’s what you need to know about pass-through grants and building successful projects.
The first thing you should know about pass-through grants is that they’re flexible. While they often come with some use guidelines, pass-through grants let recipients use the funds more flexibly than other grants. Grant recipients can give out the grant funds locally as they wish, as long as they follow the general guidelines.
This ability lets recipients tailor initiatives and programs to their specific circumstances. They can adjust funds and programs as needed, helping them to make the most impact.
Pass-through grants have the potential to reach more people and communities than direct funding grants. Involving intermediary groups like state governments and nonprofits lets grants tap in to local knowledge. Using a local, on-the-ground approach is more effective for local projects. The groups closest to the community know which areas need the most financial support. They can spread the grant across the area to reach diverse groups and needs efficiently, creating a more equitable resource distribution.
With this decentralization, pass-through grants need some oversight. The federal government and pass-through grant intermediaries work to monitor grant fund use. It’s essential that grant funds are used correctly — they must follow regulations and accountability standards. With federal and intermediary oversight, grants are protected from misuse. The regulations and oversight around pass-through grants allow communities to receive effective funding that creates better outcomes.
Using local intermediaries helps pass-through grant providers reduce ineffective funding. Handing out grants to communities with minimal expertise in the area or the grant funding focus can lead to a lack of diversity and project success. With experienced intermediaries, pass-through grants can maximize their effectiveness. These intermediary organizations are better equipped to handle local projects — they have the training, experience and resources to optimize local efforts. Sending funding to an experienced team that can manage it helps create more targeted initiatives.
Pass-through grants promote local, state and federal collaboration. Involving multiple partners in the grant-making process gets nonprofits, stakeholders, state governments and federal governments to work together to create better outcomes.
Collaborative initiatives like pass-through grants promote a more integrated, holistic approach to addressing complex societal challenges. This partnership encourages sharing resources, expertise and best practices, maximizing the impact of funded programs and initiatives.
Matching funding is common with pass-through grants. In order to receive a grant, your organization must match part or all of the grant’s financial contribution. Matching is a way for governments to create more sustainable funding and spread money to more causes.
A pass-through grant might match funds from different government jurisdictions or the private sector to collect more money for the cause without draining the federal government of all its money. This practice helps create more sustainable grants and builds a culture of funding that lives beyond the grant.
Having the federal government handle everything would lead to overworked staff and slow, ineffective grant management. Pass-through grants allow the government to delegate grant handling to different sectors. Spreading out the work helps move everything along efficiently, avoiding one group of overworked administrators.
Additionally, this approach strengthens agency ties. Encouraging different levels of government to work together makes everyone more collaborative and helps them learn from each other.
Pass-through grants play a critical role in spreading higher-level government funds to intermediary organizations and their communities. While each grant has a specific focus, here are some of the broader applications of pass-through grants.
One pass-through grant application is infrastructure development. Projects like water and sanitation, transportation and community facilities often rely on pass-through grants for funding. These grants address critical infrastructure needs, boosting residents’ quality of life and stimulating economic development. Pass-through grants deliver essential support for communities looking to take on large-scale projects for which they might not have funds otherwise.
One example of a pass-through grant for infrastructure is the Community Development Block Grant (CDBG) from the Department of Housing and Urban Development (HUD). The federal government uses this grant to distribute funds to state and local governments. These entities then distribute the funds to smaller local organizations and communities, which use the money for various infrastructure development projects.
These grants also provide essential funding to health care programs and services. Pass-through grants can fund initiatives to address public health challenges, improve access to health care or expand health care infrastructure in underserved areas. You’ll also see pass-through grants supporting the Children’s Health Insurance Program (CHIP), Medicare and other assistance programs administered by states.
Another application of pass-through grants in healthcare is the Preventive Health and Health Services (PHHS) Block Grant. This grant supports unfunded or underfunded public health needs. The federal government awards it to states, tribes and territories, which then distribute it to local health departments or community organizations. Recipients may use the funds for various purposes, including disease prevention and health screenings.
Pass-through grants often support local and state education initiatives. These grants fund programs aimed at improving teacher training, student achievement, access to early childhood education and school infrastructure. Via pass-through grants, schools can deliver quality education opportunities to all their students. These grants help local education reach everyone who needs it, using local expertise to distribute funds to the community.
Title I, Part A of the Elementary and Secondary Education Act (ESEA) is one example of a pass-through grant used in education. State education agencies receive funds from the federal government and pass these resources to local school districts. The funds support low-income areas, helping to improve teacher training and enhance student achievement.
These grants fund natural resource management and environmental conservation projects for states and local groups. Pass-through grants support efforts to restore and protect ecosystems, address climate change impacts, promote sustainable land use and conserve wildlife habitats. Many initiatives use pass-through grants to preserve the earth for future generations, protecting our world.
One such initiative is the Climate Pollution Reduction Grants (CPRG) program, administered by the U.S. Environmental Protection Agency (EPA). This program contributes nearly $5 billion in grants for projects that help reduce greenhouse gas emissions and other harmful air pollution. States receive funds from the federal government, then distribute them to organizations that can use the funds to help monitor and reduce air pollution.
Pass-through grants also help support social service programs, such as those created to meet the needs of seniors or low-income families. They use grants for job training, housing, support services and workforce development. With the help of pass-through grants, communities can build social infrastructure and strengthen safety nets for those needing assistance.
Various federal social service programs act as pass-through grants. One example is the Social Services Block Grant (SSBG), administered by the Administration for Children and Families (ACF). This grant supports social services that achieve specific objectives, such as promoting economic self-sufficiency and preventing or reducing inappropriate institutional care. The funds pass from the federal government to states and territories, which have the flexibility to decide how to distribute the funds to best meet the needs in their respective jurisdictions.
Managing pass-through grants can get complicated. Juggling all the requirements while working with multiple contact points can be time-consuming.
If you want to keep your grants effective and easy to manage, turn to software for pass-through grant management. These grant management solutions let you personalize your grant management, automate tasks and streamline the entire process.
Here’s how grant management software simplifies your pass-through grant management.
Grant management software makes the application process easy. It lets you fill out templates and offers guides to help you fill out forms correctly. With software managing your submissions, you’ll keep track of important deadlines and avoid missing essential information. Grant management software reduces application errors and ensures you make the most of every grant opportunity.
Once you get the pass-through grant, grant management solutions keep optimizing management. They help you track incoming funds, alert users to issues and monitor grant spending. With easy financial tracking, you ensure you’re following grant guidelines while maximizing your grant’s financial effectiveness.
Grant management software also simplifies pass-through grant compliance. It generates reports automatically, pulling and formatting data into the correct format. This automation saves your team time and effort, letting them focus on uplifting the community. Additionally, you’ll avoid losing the grant or violating grant regulations, staying compliant and keeping your grant future bright.
You’ll also enjoy better data security when you work with grant management solutions. Grant management software is designed to store your information securely, protecting confidentiality. Access controls and encryption protocols can protect information against data breaches, keeping you compliant with security standards.
Grant management software makes communication and collaboration easier for your team. You can share real-time documents, updates and information between grant funders, recipients and partners. You’ll create a culture of collaboration and transparency, building a trusting, effective grant process.
When you invest in grant management solutions, you get valuable insights into your grant process. With data collected from your use, grant management software can generate reports on your grant outcomes, performance and impact. This helps your organization spot improvement areas, track effectiveness and optimize grant programs.
Getting the pass-through grant you need is just the beginning. If you want to stretch your funding, you need effective grant management. Working with paper and other outdated methods will slow you down, reducing how much you can do in a set period. With the right tools and strategies, you can optimize your grant funding management to make a bigger impact.
Here are some tips for improving your pass-through grant management.
Establishing clear guidelines is a must for anyone working with grants. Managing your grants efficiently and spotting improvement points requires a good framework. You’ll need to lay out or understand the allowable use of funds, eligibility criteria and reporting requirements, such as the Grant Reporting Efficiency and Agreements Transparency Act.
Whether you’re giving out the grant or receiving it, understanding what’s expected will avoid confusion and loss of funding. Additionally, clear guidelines help applicants see what they need to do and ensure funds are used appropriately. You’ll increase transparency, promoting trust and effectiveness in the project.
Investing in technology can significantly improve your grant management. Grant management software will automate tasks like reporting, compliance, tracking and application processing, increasing efficiency. Tools like artificial intelligence and data analytics can also make grant management easier. You’ll reduce administrative tasks and errors while getting everything done on time. Additionally, you’ll make communication more straightforward, creating an intuitive, user-friendly platform where everyone can work.
Invest in your team to see great management returns. Providing training opportunities for grant recipients and staff is essential for better grant management. The more your team learns, the more they’ll grow and improve. Training programs should focus on areas like compliance, financial management, reporting procedures, tech tools and best practices. Giving your team new knowledge and skills helps enhance your organization’s ability to manage grants responsibly and effectively.
Growth comes from finding areas to improve in. Regular monitoring helps you find improvement areas while staying on top of your current to-do list. You need to track grant progress and impact if you want to improve. Regular monitoring helps identify any deviations from the plan. It also lets you assess program objectives’ success and detect risks early on.
Monitoring activities can include performance data, site visits, expenditures and feedback. With this data, you can find growth areas that will propel your organization further. With regular monitoring, you’ll ensure accountability, be ready for challenges and optimize your resource use to get the results you want.
Improvement is key to effective long-term grant management. Organizations should regularly review their processes, collect feedback and adjust based on their learning. Improvements can include refining guidelines and procedures, adopting new technology and updating training programs. Embracing a culture of improvement prepares your team for anything. You’ll create stronger bonds and achieve new heights with growth as a central goal.
Whether you’re dealing with inefficient pass-through grant management or you want to optimize your current setup, IGX Solutions can help. As grant funds become increasingly essential for driving change and competition increases, investing in effective management is key. IntelliGrants® IGX offers your team a comprehensive solution tailored to meet your unique needs. With our software’s assistance, you’ll enjoy better visibility, efficiency and communication as you navigate pass-through grants.
With IntelliGrants IGX, you’ll enjoy intuitive navigation, personalized data-gathering features and quick turnaround. Our unmatched technology automates tasks, reducing errors, delays and administrative strain. Our tools cater to a wide range of organizations, boosting grant management flexibility and versatility. From small community organizations to large government agencies, IGX Solutions can deliver a configured solution for seamless workflows.
Take charge of your grant management process today — unlock your organization’s full potential with IntelliGrants IGX. Contact us to book your demo and experience grant management in a brand-new way!
