Simplifying the application process: The advantages of grant application management software for funders

Foundations are a significant source of funding for nonprofits—they donated $103.53 billion in 2023, accounting for 19% of the total charitable giving. Government grants are just as vital; up to 30% of nonprofits rely on them to sustain their operations.

First, however, come applications.

With over 100,000 nonprofits competing for various funds, funders and grantmakers must simplify the application process to ensure seamless reviews, sound grant management, and quicker impact. Manual methods and disjointed systems are slow and inefficient, making these processes too time-consuming and intensive.

Therefore, funders must consider implementing grant application management software to streamline their operations and support compliance.

Software isn’t just another tool in the toolbox; it’s increasingly becoming necessary. It optimizes workflows, reduces administrative workload, provides actionable analytics to inform funding strategies, and supports compliance. Plus, it frees up time to ensure teams focus on the core function: maximizing the impact of funds.

Below, discover the benefits to funders when using grant management software.

Why managing grant applications doesn’t have to be so hard

Thousands of nonprofits compete for limited funds, most applying for about 2 to 3 grants weekly. For instance, the EPA’s Environmental Information Exchange Network (EN) grant program receives about 30 to 80 proposals yearly, averaging 40-45. It’s crucial to note that larger grants ($1 million+) and well-known foundations receive more applications annually.

These large intakes can quickly overwhelm funders. 

Without dedicated technology helping to streamline efforts, processing large application volumes from grantseekers can pose multiple challenges, including:

• Lengthy review processes that impact timelines

• High workloads for staff

• Inefficient communication

• Poor feedback for grantseekers

• Inconsistent review criteria

The results? Delays, grantseeker frustrations, and missed opportunities for funders and applicants.

Instead, adopting grant application management software helps reduce review times and enhance communication, empowering nonprofits and other outcome-driven recipients to focus on impact rather than administrative tasks.

Ultimately, managing grant applications doesn’t need to be a tedious endeavor for teams. Using the right software streamlines the process, eliminates disjointed systems, and reduces administrative overhead. It also integrates data from multiple sources to create a more holistic view of grant activities for effective decision-making.

What grant application management software actually does

From reviewing applications to managing applicants, grant management software delivers the efficiency that funders need to drive maximum impact. 

It offers several functions to streamline the whole process, including:

• Intake and submissions: The software provides an intuitive, user-friendly interface that makes it easy for applicants to submit proposals.

• Application tracking: Teams get visibility into applications throughout every stage—from submission to decision—for optimal oversight.

• Automated communication: Throughout the application process, applicants and reviewers get automated communication to stay on top of every action.

• Reporting and analytics: The software offers built-in reporting tools to allow funders to compile data for board meetings, annual reports, and IRS reporting.

• Document management: The software provides funders with a central repository to store and organize all grant-related documents for easy access.

Moreover, the best grant management software supports seamless usability for all parties involved in the process, including funders, grantees, and reviewers. It keeps everyone on the same page for effective collaboration with commenting features, shared dashboards, notifications, and role-based permissions.

For instance, Foundant Grant Lifecycle Manager (GLM) offers a user-friendly interface to deliver an intuitive experience for applicants and evaluators, regardless of their level of technical expertise. SmartSimple Grant Management offers similar functionality, with custom workflows to match the organization’s application process.

Make life easier for grantees and your team

Software solutions pack robust features that automate manual processes and speed up application processing. They offer intuitive cloud-based platforms to streamline every aspect of the grants lifecycle, delivering a convenient experience for grantees and internal staff.

Their impact on grant administration is huge, allowing funders to spend more time and money making a real difference. For instance, the software centralizes all grant activities and operations, eliminating redundant steps and improving collaboration. It brings all parties together to simplify operations and ensure better oversight. 

This ensures:

• Easy access to data

• Improved communication

• Faster processing times

• Timely decision-making

A crucial benefit of software solutions is automation, which saves considerable time compared to manual methods. Automated workflows reduce human errors and boost efficiency; applicants benefit from quicker processing times, while your team can enjoy a reduced burden to focus on high-impact activities.

Plus, all parties get real-time status updates, notifications, and shared dashboards, improving application tracking and keeping everyone on the same page.

Customize your process without rebuilding it

With dedicated grant management software, funders can leverage customizable workflows to tailor the application process to their unique needs and processes. You get a suite of configurable modules that can adapt to your operations and goals, whether simple or complex.

For example, Foundant’s software supports scalable, multi-program configurations, enabling funders to run multiple grant programs in one cohesive system. Similarly, SmartSimple’s customizable grant criteria setting allows funders to ensure awarded grants are aligned with the organization’s goals for maximum impact.

Custom workflows in grant management software offer multiple benefits, including:

• Reduced processing costs

• Improved team collaboration

• Enhanced application visibility

• Greater productivity and performance

With customizable modules, funders don’t need to rebuild application processes. A few setting tweaks and configurations allow them to customize processes as needed to match their workflows. This flexibility makes it easy to tailor forms, timelines, review flows, role names, and notifications to suit a specific grant program.

Use data to drive better decisions

Manual, disjointed systems deny grantmakers the actionable insights necessary to better pursue their desired impacts or perform ongoing process improvement.

Without these insights, funders operate blindly, relying on intuition and guesswork to make critical funding decisions. This results in flawed strategies, biased reviews, and inefficient fund allocation, hampering the organization’s mission and goals.

Purpose-built grant software facilitates decision-making better with real-time access to data analytics and actionable insights, which help funders identify fund beneficiaries, monitor trends, and measure the outcomes of awarded grants. 

This enables data-driven operations and fuels impactful stakeholder conversations, ensuring:

• Improved efficiency and productivity

• Enhanced transparency and accountability

• Increased impact and effectiveness

• Better adaptability and resilience

Software solutions also offer intuitive dashboards that allow staff to track applications and gain valuable insights into spending patterns and grantee performance. They store all historical data in one place, making it easy for staff to access it for reference. With built-in reporting tools, funders can present data in an easy-to-understand format.

Analyzing data empowers funders to uncover patterns and trends that help them make informed decisions about grantmaking strategy, funding, and applications.

Support equity and transparency from the start

Equity and transparency are central to impactful grant programs. Funders must ensure their grants are accessible to all applicants. For example, minority-led organizations tend to receive less grant funding.

With software solutions, funders can ensure transparent processes from the start for equitable reviews, efficient fund distributions, and easy access to grants. 

Here is how grant management platforms support accountability, transparency, and equity:

• Consistent, easy-to-navigate applications reduce barriers to access for all interested grantseekers.

• A centralized platform keeps all grant activities in one place for easy access by all stakeholders.

• Automated workflows and anonymous applicant information reduce human bias in the review process to ensure equitable reviews.

• Automated notifications and alerts keep all parties well-informed on key actions and statuses.

• Shared dashboards and reports ensure easy access to key grant data and information for better decision-making.

• Stores all historical data in one place for future reference by any interested party.

Grant application software enables open communication and visibility throughout the grant process. This creates an environment where funders can build trust with stakeholders to enhance transparency and exceed funding goals. Plus, multiple users can access grant applications to ensure accountability before submissions.

Make grantmaking smoother for everyone

Without the right tools, grantmaking can be complex and time-consuming, leading to delays, frustrated applicants, overburdened staff, and missed opportunities. However, this doesn’t need to be the case!

Grant application management software solves such issues, empowering funders to take control of their grant programs, maximize impact, and meet or exceed funding goals.

Foundant’s GLM, cloud-based grant management software for foundations, automates the application process, offers real-time data, delivers a user-friendly interface, and supports compliance monitoring. 

Want to streamline your application process? 

See how Foundant’s tools empower funders to focus on what really matters: impact.