5 Mistakes Some New Federal Grantees Make

I always tell the story that I started managing federal grants when I transitioned from managing marketing and advertising campaigns to a part-time grant manager role for a nonprofit in Atlanta, GA.

My manager--the director of finance--was a former senior director at one of the Big Four consulting firms. She realized I had a knack for numbers and analysis and asked that I read and summarize parts of the Office of Management and Budget (OMB) Circulars that were relevant at the time. Soon I was also reading and summarizing the HEARTH Act, the Continuum of Care program, and other laws or federal guidance that were germane to the funding we received. This was back in the mid-aughts when OMB Circulars were still used for federal grants.

Regulatory changes that would impact the organization's programs and funding were coming and having a government grant manager helped the organization adjust as needed.

I also managed federal and other government grants at other organizations, including a top research university. All in all, my previous work experience and my current role as founder and CEO of Grants Works has given me the opportunity to observe and learn from other organizations.

Below are five of several mistakes I noticed that some new federal grantees make.

1 - Believing Federal Grants Are Managed Like Foundation Grants

As a new federal grantee, you will need to manage the federal grant with a focus on meeting the performance objectives and spending the award as prescribed in the award notice. This is similar to what is required for a foundation grant.

However, federal grants also require that you comply with specific terms and conditions of the award. Sometimes those terms and conditions stipulate what costs are allowable and others that are not, beneficiary eligibility requirements and documentation, additional reporting requirements, and other processes your team may not have undertaken before.

2 - Ignoring the Terms and Conditions of the Award

I’ll keep this one short. When you accept a federal grant, you are agreeing to adhere to all the terms and conditions and, in some instances, the special terms and conditions that may come with the award.

3 - Delayed Attempt to Find the Expertise Needed

Assigning management of the federal grant to a program or project director because “it’s their project” may not be the right approach for several reasons. When I was the fiscal consultant during site monitoring visits of federal grantees, I quickly learned that this is often the approach used and I also learned some of the pitfalls of that approach.

If your organization received its first federal grant(s) and no one on the team has federal grant management experience, consider hiring a consulting firm such as Grants Works. Our team is comprised of specialists who managed federal grants or grant management teams for nonprofit organizations, colleges and universities, and for profit commercial organizations.

4 - Delayed Implementation of the Systemic Changes Required

As I wrote above, your organization will have to adhere to the terms and conditions of the federal grant. If your organization’s systems and processes currently are not set up to effectively manage a federal grant, systemic changes will be necessary. ?

5 - Deprioritizing Federal Grant Training

I received training in every grant management role, and I still take advantage of training to stay abreast of regulatory changes and to learn from others. Similarly, you should ensure that the person or people charged with managing federal grants at your organization receives the training needed to, first, understand the fundamentals and then, increase their knowledge over time.

I created Grants Works Academy to be a federal grant training resource. We develop “recipient-centered” federal grant training and one of the training programs we developed is currently rated 4.5 out of 5 stars by 603 participants. I recommend our Federal Grants Simplified Bootcamp? as a start. We also create customized training. Contact us to learn more.

How to Access Free Training

Grants Works will be hosting six webinars over the next six months.

The first webinar is scheduled for July 11, 2024 and will cover subrecipient monitoring. The other five topics include the updated Uniform Guidance, grant management policies and procedures, and more.

To register for the July webinar, click here. To learn about and register for the other webinars, visit the Grants Works Events page.

I am aware of other mistakes some new federal grantees make but I’ll cap it here for now. If any of the five mistakes I shared sound familiar or you know of others, let me know in the comments.