Significance of Grants in Nonprofit Fundraising
A Grant is a sum of money given to an organisation or individuals for projects and research. Securing grant funding is important for lots of nonprofits when they’re trying to raise funds. Grants play a vital role in nonprofit fundraising strategies for several reasons like,
- Grants provide vital financial support for nonprofit organisations to achieve their mission and objectives.
- Grants diversify revenue streams, reducing reliance on single sources of income and increasing financial stability.
- Grants support specialised projects and research initiatives that might not be feasible with regular donations alone.
- Securing grants from reputable sources enhances the credibility of nonprofit organisations.
- Multi-year grants offer long-term financial sustainability and predictability, supporting ongoing initiatives and growth.
In this blog post, we will explore how Salesforce can be leveraged to streamline and enhance grant management for nonprofit organisations, educational institutions, and other entities.
What is a Salesforce Grant Management System?
Managing grants effectively can be a complex task for organisations of all sizes, mostly in the public sector. With the increasing need for transparency, accountability, and streamlined processes, many nonprofits and public sector businesses are turning to technology solutions to simplify the grant management process. One such solution is Salesforce Grant Management Systems.
The Grant Management System in Salesforce is a comprehensive cloud-based platform designed to streamline the entire grant management life cycle.
It allows organisations to efficiently manage grants from initial application submission to final reporting, all within a single integrated system.
OFM vs GMS
Salesforce offers two related products to be effectively used for the Grant management process. They are
Outbound Funds Module (OFM) and Salesforce Grants Management (GMS) that serve distinct purposes but share a common foundation. Let’s dive into a detailed explanation of each and their differences:
| Feature | Outbound Funds Module (OFM) | Salesforce Grants Management (GMS) |
| Definition | Open-source product designed to help organisations manage and deliver funds. | A paid product built on OFM, tailored to grantmaking organisations for streamlined grant management. |
| Key Users | Nonprofits, grant recipients, and organisations managing funds. | Grantmaking organisations, foundations, and entities providing grants. |
| Cost | Free to use. | Paid product, requires a subscription. |
| Customisation | Highly customisable to adapt to unique organisational needs. | Pre-configured templates and workflows, offering less flexibility but easier setup. |
| Open-Source Nature | Open-source, source code is available for public modification. | Proprietary, not open-source. |
| Grant Lifecycle Support | Covers the entire grant lifecycle, from application to reporting. | Tailored to grantmakers, offering advanced grant lifecycle support. |
| Integration with Salesforce | Can be integrated with other Salesforce products and third-party applications. | Seamlessly integrates with the broader Salesforce ecosystem for enhanced functionality. |
| User Interface | Customisable user interface with a potentially steeper learning curve. | User-friendly interface with pre-configured templates and workflows. |
| Reporting and Analytics | Offers basic reporting capabilities. | Provides advanced reporting and analytics tools for in-depth insights. |
Grant Management Process
The grant management process is a series of steps and activities organisations follow to acquire, administer, and report on grants effectively. Here’s an overview of the typical grant management process:
1. Grant Identification and Research
Organisations identify potential grant opportunities that align with their mission and objectives.
2. Grant Application
Create a grant proposal or application that outlines the organisation’s goals, objectives, budget, and expected outcomes.
3. Application Submission
Submit the grant application within the specified deadline. Ensure that all required documents and information are included.
4. Grant Review and Evaluation
The granting organisation or a panel of reviewers evaluates the applications. Applications are assessed based on criteria such as alignment with the grantor’s priorities, feasibility, and potential impact.
5. Grant Award
Successful applicants are notified and receive the grant award. Grant agreements or contracts are typically signed to formalise the funding arrangement.
6. Grant Implementation
Develop a plan to implement the project or program funded by the grant. Allocate resources, assemble teams, and initiate the project.
7. Financial Management
Create a budget that tracks grant funds and expenditures. Ensure compliance with financial reporting requirements and manage cash flow effectively.
8. Program Monitoring and Reporting
Continuously monitor the progress of the project or program. Generate and submit regular reports to the granting organisation, detailing project status, expenditures, and outcomes.
9. Compliance and Documentation
Ensure that all activities comply with the terms and conditions specified in the grant agreement. Maintain accurate records and documentation related to the grant.
10. Grant Closure
Complete all required reporting and documentation at the end of the grant period. Submit the final report and any other deliverables as specified by the grantor.
Data Model
Funding Program
Represents a thematic or strategic funding initiative provided by an organisation.
Funding Request
An application for funding, which can be from external organisations or individuals, or for internal requests.
Review
Tracks feedback from a reviewer about a Funding Request.
Funding Request Role
Tracks Contacts related to a Funding Request, allowing multiple Contacts to be associated with one request.
Funding Request Collaborator
Tracks users with access to collaborate on a Funding Request.
Funding Request Collaborator Invitation
Tracks invitations for collaboration on a Funding Request.
Verification Check
It allows organisations to systematically verify and document specific grant-related information or documents for due diligence and compliance purposes.
Requirement
Deliverables or milestones needed for a Funding Request to be approved or closed.
Disbursement
Payments made or scheduled to be made to the funding recipient.
Budget
The planned amount of funds for a specific objective during a specified time frame.
Budget Allocation
Represents funds earmarked or awarded from the parent Budget.
In-build Grant Management Features
GMS provides various pre-build features that come along with the product to ease the Grant Management process.
| Feature | Description |
| Grants Portal | Create an Experience Cloud portal for external users. |
| Basic Application Flow Template | Automate how an application is collected on your portal. |
| Enhanced Application Flow Templates | Provide multi-screen forms and allow users to save and return to their grant applications. |
| Organisation Self-Registration | Give grantseekers the ability to register in your portal and update their organisation information. |
| Invite-Only Applications | Invite an applicant to apply to private funding. |
| Manage Collaborators | Encourage fellow users on the portal to join and collaborate on funding requests. |
| Tax Status Check | Verify a nonprofit’s tax status with GuideStar. |
Action Plans
| Use Salesforce Action Plans to standardise due diligence. |
| Internal Review | Capture review status and comments on a Review record. |
| External Review | Review applications in your Experience Cloud portal. |
| Review Workspace | Configurable, single-screen view of an application’s details and attachments. |
| Manage Disbursements | Ability to schedule and track Disbursement details against a Funding Request. |
| Requirements Management | Capture details about grantee requirements such as type, due date, and status. |
| Reporting and Analytics | Reports are included in the product to get you started. |
Conclusion
The Salesforce Grant Management System provides organisations with a powerful and efficient solution to manage grants effectively. From centralised data management to streamlined workflows, enhanced reporting, and improved communication, the Salesforce Grant Management System offers a wide range of benefits and advantages. By implementing this system, organisations can maximise their grant management efforts, improve efficiency, ensure transparency, and ultimately focus on achieving their missions. Embrace the power of the Salesforce Grant Management System and take your grant management to new heights!
