Grant Reporting

When a nonprofit receives foundation money, it is critical they provide a report to the foundation on how they spent the money.

Almost all foundations require some type of report. What is required and the due date is usually explained in the acceptance letter that comes with the check. Not reporting back to the foundation means no more funding from future requests. Also, the foundation can notify other foundations of noncompliance in reporting.

But, let’s assume the positive and the nonprofit staff eagerly read and understand the reporting requirements. As much care should be taken in preparing the report as writing the grant. Many foundations use the reports they receive as a measure of the nonprofit’s ability to operate effectively.

Even if not requested, a nonprofit should provide at least one story of someone, a family, or a community being helped by the funding. The report’s data and information should relate to the story, which should be the highlight of the report.

If the foundation does not require a report, send one anyway. Even if it is a letter, the foundation should appreciate the feedback. Reports are beneficial to the nonprofit for many reasons:

—  They continue the communication between the nonprofit and foundation.
—  The report assures the foundation that the money was spent for what it was meant to do.
—  The foundation can use the information and stories to showcase that their grants were helping people. Showcasing the nonprofit, too.
—  A report gives the nonprofit added points for getting future money

A timely and accurate report helps to build a relationship between the nonprofit and the foundation. This relationship can sometimes mean more than the money received.

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