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Introduction

Rae Ann Dougherty - USA
RaeAnn Dougherty • 9 June 2022

INTRODUCTION

It is usual for not-for-profit organizations or voluntary movements (e.g., charities, foundations, associations or institutions, referred as “organization/s” in this document) to raise funds responsibly in order to carry out their programs and projects, and sustain their operations in the long-run. These funds may come in the form of legacies, endowments, income from charitable or trading activities, and the most common are donations and grants.

 

A quick refresher to differentiate between grants and donations is presented in the table below.

 

Grant

Donation

The grantor (giver) is a specific party. (e.g., institutions, businesses, corporations, government)

The donor (giver) can be anyone.

The funds are restricted.

The funds are unrestricted.  It   becomes   restricted   when   the   donor wishes the donation to be used for a specific purpose.

The grantee (receiver) shall use for a specific purpose with specific term/s and condition/s.

The donee (receiver) may use for any purpose (e.g., for “charitable purposes” and to benefit a cause).

It requires an application via a grant proposal or application (“grant writing”).

With or without a letter of request. Usually given wholeheartedly.

It   undergoes   a   process   of   approval and acceptance before it is given.

It doesn’t need to undergo any process of approval and acceptance.  It is up to the donor if it will or will not give.

It is formalized by a contract / agreement.

Generally, it is not formalized in writing. An exception would be if the donor wishes the donation to be used for a specific purpose.

 

Both are forms of giving/fundraising (e.g., event donations are contributions that donors make during a fundraising event)

 

There are many types of grants that organizations receive, including capital (infrastructure) grants, operating grants, and program or project grants. With any type of grant, there are best practices that assist in reaching a successful grant outcome. These are collectively referred to as grant management. Grant management is defined as all of the administrative work that is necessary to  use and fulfill the requirements of a grant. Grant management includes the processes and methods organizations go through to oversee grants.

 

The best practices for grant management can be divided into three categories:

 

  1. Pre-grant - what to do during the granting process, or before accepting a grant

 

  1. During grant - how to successfully monitor progress so that reporting is efficient

 

  1. Post-grant- reporting and follow-up after the grant is completed

 

Following these grant management practices will not only result in successful completion of a grant; they also create a positive relationship with the grantor by demonstrating that you are competent and a deserving grant recipient, and sets you up for further success with the grantor.