Now, in case you think this is going to be one of those “I walked through the snow five miles to school uphill both ways!” type of story, I have to confess…

I had it easy!

I never had to start a grants office from scratch (all by myself) to manage federal awards.

I did “stand on the shoulders of other grant heroes,” building on the efforts of those who came before me.

But I still could learn a lot about improving our grant management functions by listening to those just starting who have fresh eyes.

Where to Start Building Grant Management Functions?

I recently participated in a lively discussion in the Grant Writers Networking Group on LinkedIn about how to start a grants office.

(Even though my focus is on grant management, I like to follow what’s happening in the grant writing world as well…)

Some of the best tips were shared by people who had been there and chimed in from the trenches about what to do and where to start.

Tip #1: Recognize That Funders Care More about Programs and People, Than Technology and Headcount

I had a conversation with a dedicated and innovative engineer about how to receive funding for his organization that built specially designed 3D printers for creating prosthetic hands for children injured by the effects of war and poverty.

It was an admirable and exciting program that could transform the lives of some of the most vulnerable and traumatized citizens in diverse areas of the world.

However, he was focused on the cool technology rather than the young lives that were dramatically improved from a place of hopelessness to pride and excitement.

Things are no different in the grant world.

Funders want to fund programs that make a difference and improve people’s lives.

They aren’t particularly interested in funding headcount to manage a grant office for the next two years or provide computers to process invoices and fill out reports.

Tip #2: Align Your Focus with Your Funder’s Mission

There are many approaches to raising funds, developing donor sources, and building capacity.

But at the heart of all successful grant applications is an alignment with what the funder hopes to accomplish by awarding grant funds.

Rarely are grant applications successful that focus on what YOU want as an organization.

Let’s face it, we all are motivated by self-interest, and donors and funding agencies are no different.

Whether your organization’s approach is to bring in as much money as possible and then align resources to get the work done or find funding for projects that match your core mission and interests, never forget that alignment to the funder’s mission is the key that unlocks the wallet.

Tip #3: Build Strong Systems That Protect and Serve

When you ask for funding to cover operating costs for your grant office, you will likely be disappointed in the lack of enthusiastic support.

Indirect costs and other administrative costs don’t have the “public appeal” of direct costs supporting the projects and programs.

(I can assure you, in one of my prior lives, we had images of the scientists flying in helicopters over the Polar Regions showing conspicuously everywhere, but not a single picture of an account payable clerk entering an expense report or helicopter invoice…)

So are you wondering how to “sell” the need for sufficient support staff to funding agencies and donors?

It’s pretty simple.

Move the focus from the transaction-based need to the safety and security of the funding dollars.

When you receive a grant, the funding agencies and donors want reassurance that the grant funds will be managed as expected.

They want to feel comfortable that the Federal and non-Federal dollars will be spent as intended and not wasted…or, to put it more forcefully…SQUANDERED!

Focus your support systems around building that assurance of strong internal controls that protect the funds to serve the intended public purpose.

Tip #4: Invest in Strong Infrastructure and Training

1980 I worked for the US Census Bureau at a field office processing payroll.

It may sound funny to say this today, but picture this; all of our office furnishings (except our chairs) were made of cardboard.

The desks, the file cabinets, everything was “wood grain” printed cardboard.

(Evidently, someone had done a study and decided it was more cost-effective to furnish each field office with cardboard furniture that could be thrown in the dumpster at the end of the census than to buy or rent “regular” office furniture.)

This sense of disposable furniture (and similarly, temporary workers-disposable people) negatively impacted the organization’s morale and engagement.

When you manage grants for relatively short periods, you face this same risk of poor commitment to people and processes.

It is a wise organization that recognizes the investment in solid support infrastructure and training that can produce returns in the future.

This commitment to effective (and efficient) grant management can pay dividends in terms of future funding opportunities and a strong positive reputation in the grants community to recruit and keep accomplished grant professionals.

Tip #5: Support Diversity-10 Examples

Here are ten examples for starting a grants office from being viewed by the program staff as the “grant police” to a valued partner with the grant staff to assist the program in meeting its performance objectives:

1. Research and find new sources of funding, including networking for funding leads
2. Become an effective communicator about how capacity building furthers the mission of sponsored projects and programs
3. Assist program staff with applications and review
4. Support bench-marking and performance objectives for the indirect functions as well as the direct spending
5. Cultivate new relationships in the funding community, but also cherish your repeat donors for expanded funding roles
6. Engage the board of directors in sustainable operations and funding strategic planning
7. Establish policies and procedures that demonstrate a strong commitment to funds management
8. Support accounting for grant expenditures, level of effort reporting, and writing policy for compliance with federal regulations and award terms and conditions
9. Remind stakeholders of the Federal government’s responsibility to pay for their “fair share” of overhead costs that support the grant.
10. Fight for inclusion in program budgets and funding applications

And lastly, when starting a grants office, be a bridge between the Finance/Accounting staff and the Program staff.

Managing grants—particularly Federal grants is a whole different animal. When you become the “bridge over troubled waters” at your organization, you are headed in the right direction to building value with your grant office.