Having specialized grant applications and reports imposes a big administrative burden on nonprofits. Consider, a nonprofit receives grants from 20 or 30 foundations (and some are funded by many more).

Ways to simplify and streamline paperwork

  1. Right-size applications and reports for small grants. Create a shorter application for small grants (typically under $10k). Some funders use a one-page application and waive reporting, or require just a few short paragraphs.
  2. Right-size requirements for repeat grantees and organizations you know well. File their materials for easy reference, and ask for updates only. Consider combining their reporting and renewal into one step. Or have regular conversations to learn about the grant’s impact.
  3. Waive some requirements for small, new and grassroots organizations. These groups have neither the staff nor systems to prepare detailed applications, reports and financials.
  4. Create a simple prescreening process. Set up a letter of inquiry process (via your website, a short paper form, or phone call) to keep grantseekers from wasting time. Only invite full proposals from those that fit your guidelines.
  5. Make your application easier. Reduce the number of questions, and allow applying electronically. Let applicants link to their mission statements, reports, programs, etc.
  6. Let grantseekers submit financials in an original format. Reformatting financials for different funders is costly, strenuous, and it increases the likelihood of mistakes. Pull their Form 990 yourself through GuideStar.
  7. Eliminate quarterly and twice-yearly grant reporting, except for high-risk grantees. An annual or end-grant report should meet your needs.
  8. Align grant schedules with the grantee’s timing, not yours. If a project begins before grant approval, clarify that the grant is not a commitment until formally approved.
  9. Make your streamlined requirements clear. Detail what you require and when. Set clear limits for word or page count.
  10. Give gen op grants with simplified applications and reports. General operating support is hard to get. By offering it, you’ll help grantees solve their toughest fundraising challenge.
Read the full article about funder practices at Exponent Philanthropy.