Develop Grant Policies and Procedures

A grant award is not simply a gift. It is a contract. Just as your organization signs rental agreements for office space or service contracts with vendors, a grant award establishes a formal agreement between your nonprofit and the funder. That agreement often includes specific expectations, reporting requirements, and conditions for how the funds will be used.

Because of this, nonprofits need clear policies and procedures for seeking, accepting, and managing grants. Even if your organization only receives a few grants each year, having defined policies helps ensure that your grant activities are transparent, accountable, and aligned with your organization’s mission and leadership oversight.

For example, consider these questions:

• Who in your organization must approve a grant proposal before it is submitted?
• At what funding amount does a proposal require executive leadership or board approval?
• Are there certain types of funders or gifts your organization will not...