Grant process flowchart: The entire grant application and grantmaking process

A grant opportunity is a chance for you to advance your organization's mission with an investment from local, corporate, community, state, or federal dollars. But this opportunity comes with hard work and an often complex process.

There are three phases in the grant process: pre-award, award, and post-award. The pre-award phase includes creating and promoting the funding activity and researching or inquiring about grants. The award phase involves notifying the awardee, discussing terms and conditions, and identifying critical deadlines and programmatic targets. The post-award phase includes evaluations and active monitoring of the progress of the grant project and regular documentation from the recipient. Key stakeholders in the grant process include grantseekers, grantmakers, community members, and any other participating organizations.

Pre-award phase

The pre-award phase includes creating and promoting the funding opportunity (grantmakers) and researching and inquiring about grants (grantseekers). Grantmaker responsibilities include generating grant guidelines and applications, promoting the grant, collecting submissions, and reviewing the applications. Grantseeker responsibilities include identifying potential funding sources, mapping out due dates and requirements, writing grant proposals, and submitting applications.

Grantmaker creates the funding opportunity

The first component of the pre-award phase is creating the funding opportunity. Funding organizations often have an office of management and budget that utilizes “Uniform Guidance,” which contains requirements, cost principles, and audit requirements for federal awards. 

When creating the grant application, grantmakers should tailor the grant size to their organization to best allocate their funds. Regular check-ins and shared funding pools can streamline processes and align goals throughout the grant creation. Grantmakers must maintain transparency and clear communication about funding criteria and keep the grantmaking process simple by reducing redundancy and only focusing on essential questions. 

After discovering the grant opportunity, the next step is promoting the grant to possible grantseekers. The way organizations promote their grant will vary depending on structure and goals. Promotion is done through various channels, including social media, websites, and newsletters. In some cases, grants are promoted through letters of inquiry from interested grantseekers. 

Grantseeker conducts initial research and preparation

On the grantseeker side of the pre-award phase, the grant process begins with the initial research and preparation for identifying funding opportunities. There are tools to guide grantseekers through the process, such as Funder Search. 

Funder Search is a software that has a database of over 28 million grants and can be used to gain deeper insights into grant opportunities. The user can refine their search using keywords and advanced filters, so finding grants that align with the user’s goals and mission is simple. Funder Search provides up-to-date, comprehensive information to a vast database of grant opportunities, streamlining the pre-award management processes and maximizing funding potential. 

Funders often check public sources for information on their applicants, so it is beneficial for grantseekers to ensure their external appearance is current, consistent, and professional as part of their pre-award process. 

When choosing a funder, it is also important to consider an agency’s mission, vision, and strategic plan. When reviewing funding opportunities, the requirements and guidelines for the grant application should be spelled out and easy to find. Grantseekers should identify the resources needed for the grant and identify who in the organization owns or can share that information.  

Grantseeker writes the grant proposal

It is essential for grantees to understand the process of applying for a grant. When writing a grant proposal, grantseekers should draft an outline and structure a timeline for the writing process. This information should be shared with the team of individuals who will help gather information for the proposal and provide official documentation or sign-off. This process ensures that the grant proposal will be submitted by the due date. 

Project management tools and collaboration platforms are great resources for writing a grant proposal and communicating with team members. They allow step configuration, deadline setting, and notifications.

Details for grantseekers to consider in writing a grant proposal:

• • • • Develop a “boilerplate” narrative that can easily be modified. It will save time, especially when working on multiple proposals.

      • Understand restrictions on things like character limits and file type.

      • Make your budget justifications as detailed as possible. Explain your expenses in a way that promotes the office of management and budget’s basic cost principles and the funder’s guidelines—reasonable, prudent, and allowable.

      • Follow all grant application steps to complete the grant proposal process fully.

Grantseeker submits the application

After the proposal is finished, it must be submitted before the established due date. The document sent to the grantmaker to obtain a funding opportunity directly responds to a funder’s Request for Proposal (RFP). Grants are competitive, and the timetable from the release of the RFP to submission is often less than 60 days, although the notice of an award can take up to one full year.  

Grantmaker reviews applications

After the application deadline, each application is processed and reviewed to sustain due diligence between the grantee and grantor before the grant is awarded. Due diligence is still primarily conducted using a standard set of questions in the donor’s primary language, usually sent to the grantseeker over email. With nearly universal internet access and the mass adoption of teleconferencing software, automatic translation tools, and safe data storage options, there are many ways that due diligence in philanthropy can be better streamlined and localized. Typically, a grant proposal scoring system is used to evaluate proposals. Benefits of using a grant proposal scoring system include:

• • • Objectivity and Consistency

    • Clarity 

    • Transparency

    • Improved proposals

Scoring systems provide grantseekers with feedback and revisions that they can use to improve their future proposals. At the end of this process, grantmakers decide on the best allocation of their funds and choose a grantee. 

Award phase

The award phase of the grant lifecycle consists predominantly of notifying the awardee, discussing terms and conditions, and defining critical deadlines and programmatic targets.

Grantmaker sends notice of award 

In the award phase, grantmakers communicate with the applicant who best meets the grant requirements according to the organization’s goals or missions. Some organizations call this the “notice of award” or NOA, while others simply call it the “award letter” or “grant agreement.” Either way, it is an official legal document stipulating the terms and conditions of the grant. 

Grantmaker and grantseeker negotiate terms and expectations 

Before funds can be granted, the grantseeker must negotiate terms and conditions such as policies, allocation of funds, and relevant timelines. When the grantee and grantor agree on all components, the grantee signs the agreement.

Grantseeker receives funding 

After establishing compliance requirements, the grant funding process begins. The grantseeker receives the funds from the grantmaker and is held responsible for meeting the agreed-upon financial, reporting, and administrative requirements. The grant approval workflow procedures ensure the grantee receives the correct funding. 

Post-award phase

The post-award phase begins once a grant is awarded. After the grantseeker receives the funding, the project conducted by the grantee must be completed within the given timelines while maintaining regular contact with the grantor. The grantee must also submit reports on finances, compliance, and progress. Not only does effective post-award grant management determine the success of the project, but it also determines future funding and the strength of long-term relationships with donors. 

Grantseeker executes project

Once a proposal is submitted, the grantee tracks its status with the grantor. The grantee gets a receipt for the submission, tracks its progress with spreadsheets or software, and provides more information, if needed, to the grantor. Upon reward, the grantee team will begin managing the grant. Grant management includes document, task, and financial management, budgeting, auditing, spend down tracking, and compliance. 

A streamlined and integrated system can make the process easier and more efficient. Foundant offers GrantHub Pro, a platform that manages the entire grant process. It tracks applications, generates reports and analytics, and allocates funds from the pre-award phase to post-award grant management. Then, the work begins; the awarded organization implements the project. The grant manager will manage financials and oversee their project deliverables throughout the project. Reports are submitted to the funding organization based on the grant requirements.

Grantseeker reports on performance

Performance reporting requirements are a primary expectation included in nearly all grant awards. Most grantors want to confirm that the program implements the grant according to the award and its related terms and conditions on schedule and within budget. 

Financial systems are sources for responding to the financial performance of implementing the grant. The visibility provides an additional level of accountability to the program. Important information drawn from reporting includes commitments completed relative to the total commitments, the percentage of commitments completed within the established timelines, and the actual outputs and outcomes versus the estimated outputs and outcomes.

The grant recipient will submit required regulatory documentation, such as timetables, appropriate financials, and performance data. Although it may differ from state to state, standard policies governing the nonprofit grant process are establishing recognition as a nonprofit entity, and maintaining compliance with state labor and non-discrimination laws, environmental regulations, and basic ethical regulations. To guard against any potential misuse of funds, federally awarded grant recipients will submit all financial and performance information within 90 days of the grant's close. 

Grantees must also prepare for audits and evaluations. While auditing requirements may vary based on a grantor’s federal or non-federal status, internal and external audits are a regular practice.

Internal auditing best practices include:

• • • • Reconciliation of accounts.

      • Proper authorization protocols for administrative actions.

      • Maintaining detailed transaction records.

      • Proper and regular staff training in financial systems.

      • Appropriate use and safeguards for using technology.

External auditing best practices include:

• • • • Preparedness for reviews to address potential issues.

      • Select auditors who are familiar with and experienced in your sector.

      • Maintaining communication with auditors.

      • Responding promptly to findings or recommendations provided by the auditor.

      • Conducting post-audit reviews.

Grantmaker evaluates performance

Evaluation as the grantor in the grant review process may include: 

• • • • Establishing metrics for and defining the success criteria.

      • Soliciting feedback from stakeholders in the project.

      • Requesting grantee feedback.

      • Preparing an annual or quarterly impact report summarizing challenges, achievements, or lessons learned.

Evaluation as the grantee in the grant review process may include:

• • • • Usinga logic model to assess activities, inputs/outputs, outcomes, and impacts.

      • Soliciting feedback from stakeholders to gain a more diverse perspective.

      • Creating feedback loops for continuous learning.

      • Preparing a final report that details findings, lessons learned, and actual vs. intended reach of the project. 

Close out phase

The plan for award closeout should begin sixty days before the end of the grant. Throughout the period in which funding is available, it is critical to consider how the organization will remain functional once funding runs out. 

Grantmaker submits final documentation

Submitting the final reports at the time of the grant closeout will potentially require the following documentation:

• • • • Financial report 

      • Programmatic report 

      • Compliance documentation (i.e., audits, receipts, or contracts)

      • Evaluative reports (impact or outcomes assessments) 

Grantmaker closes out the award

The grantee must ensure that funds have been spent according to plan, prepare final financial and programmatic reports, and any performance-related metrics are delivered. The funding organization will also use this time to reconcile any potential gaps in compliance, fulfill grant requirements, or address any remaining financial concerns. 

Need help with grant management?

Benefits of using software for grant management

• • Never miss another deadline with a built-in reporting structure that tracks, manages, and reminds you of all approaching deadlines.

  • Organize all payment installment information by syncing software with your financial or accounting system. This eliminates tedious manual data entry and gives your team real-time visibility into grant-related data.

  • Easily assign tasks to the appropriate team members to keep ahead of documentation and reporting to your funders. 

  • Increased visibility across all of your staff and funders. 

  • Build trust and credibility with automated internal and external messaging, which keeps your board, funder, and stakeholders in the loop with customizable reports, budget and expense tracking, and progress data. 

Learn more about Foundant’s grant management software