Grant reporting and stewardship

This guide is for anyone who has just won a grant, or is about to write their first report to a funder. Winning the grant is the start of a relationship, not the end of the work. After reading, you'll know what to look for in a grant agreement, how to track the money, how to write reports funders trust, what federal rules add, and how to stay in touch between grants.

If you're still writing the application, start with grant writing basics and grant budgets.

Read the grant agreement before you spend

The grant agreement (sometimes called an award letter or grant contract) is the legal promise between you and the funder. Read every page before you spend a dollar, and give a copy to whoever keeps your books. Look for:

• What the money is for. Is it for a specific program, or for general operating costs? Money given for a specific purpose is restricted.
• The grant period. The dates you can spend the money. Costs outside those dates may not count.
• Reporting dates. When interim and final reports are due, and what each must include.
• Budget rules. Whether you can move money between budget lines, and by how much, without asking.
• What needs prior approval. Changes that need the funder's written permission first, such as a change in the program's goals, key staff or timeline.
• What happens to unspent money. Whether you return it, keep it, or ask to extend the grant.
• Credit and publicity. How the funder wants to be named, if at all.

If anything is unclear, ask the program officer before you sign. It's a normal question and it shows you take the grant seriously.

Track the money

Grant money for a specific purpose is restricted: you can only spend it on what the funder agreed to. Our restricted funds guide explains how to track it.

The basics:

• Give each grant its own code or class in your bookkeeping, so you can pull a report of what was spent on it.
• Keep receipts and invoices for every cost you charge to the grant.
• Compare spending to the approved budget every month. A budget variance is the difference between what you planned to spend on a line and what you actually spent.
• If a variance is growing, or you'll need to change the plan, tell the funder early. Don't wait for the report.

Write reports funders trust

Most grants need at least a final report. Larger or multi-year grants often need interim (progress) reports too. Use the funder's form or questions exactly. If there's none, cover:

1. What you said you'd do, in a sentence or two.
2. What you did. These are your outputs: the activities and counts, such as classes held or meals served.
3. What changed. These are your outcomes: the difference for the people you serve, such as skills learned or housing kept. Our guide on measuring impact explains the difference and how to collect the evidence.
4. What didn't go to plan, and why. Be honest. Explain the cause and what you did about it.
5. The money. Spending against the approved budget, with a short note on any variance.
6. A real story, shared with permission, if the funder asks for one.
7. What's next. What you learned and how it shapes the next phase.

Programs rarely go exactly to plan. A report that explains a shortfall clearly builds more trust than one that glosses over it. Federal rules, below, say performance reports should include this kind of explanation.

If the grant is federal money

Federal grants follow the Uniform Guidance, the rules in Title 2 of the Code of Federal Regulations, Part 200 (often written 2 CFR 200). This includes federal money that reaches you through a state, county or city, called a pass-through entity. Your award's terms come first, but here's what the rules themselves say.

• Reporting frequency. Financial and performance reports are due as your award requires, no less often than once a year and no more often than quarterly, unless a specific condition applies.
• Due dates. Annual reports are due no later than 90 calendar days after the reporting period. Quarterly or semiannual reports are due no later than 30 calendar days after the period.
• Final reports. A direct recipient must submit all final reports no later than 120 calendar days after the period of performance ends. A subrecipient (if the money came through a pass-through entity) must submit them to that entity within 90 calendar days, or earlier if agreed.
• What performance reports should contain. A comparison of accomplishments to the award's objectives, explanations of why goals weren't met, and explanations of cost overruns or higher-than-expected unit costs.
• Significant developments. If something happens between reports that could affect the award, such as problems or delays, you must tell the agency or pass-through entity.
• Prior approval. You must get written approval before certain changes, including a change in the scope or objective of the project, a change in key personnel identified by name or position in the award, or a need for additional federal funds.
• Record retention. Keep all award records for three years from the date you submit the final financial report, longer if litigation, a claim or an audit starts before the three years are up, or if the agency or pass-through entity tells you in writing to keep them longer.
• Single Audit. An organization that spends $1,000,000 or more in federal awards in its fiscal year must have a single audit (or, in limited cases, a program-specific audit). Below that, it's exempt from the federal audit requirement for that year, but its records must still be available for review. See audits and reviews.

Stewardship between grants

Stewardship means looking after the relationship with a funder, not only the money. Small, honest contact between reports keeps you in their mind for the next round:

• Send a short thank-you note within days of the award, from the chair or director.
• Invite the program officer to see the work, once, without pressure.
• Share one good piece of news mid-grant, in a few lines.
• Tell them early about problems. A surprise in the final report is harder on the relationship than an early warning.
• After the final report, ask what they'd like to see in a future proposal.

A simple reporting calendar

Make one calendar for all your grants. For each one, record:

Set a reminder 30 days before each report is due, and another a week before. Add any federal reports to the same calendar so nothing lives only in one person's inbox.

Grant reporting checklist

• Read the whole agreement and note restrictions, dates and approval rules
• Set up a separate code for the grant in your books
• Compare spending to budget every month
• Ask for approval before changing the plan, when the agreement requires it
• Keep monthly notes for the report
• Explain outputs, outcomes and any shortfalls honestly
• Submit every report on time, and keep a copy
• Keep grant records as long as the agreement or federal rules require
• Thank the funder and stay in touch between grants

General information, not legal, tax or financial advice. Rules change and every situation is different, so check the official sources and talk to a qualified professional before you act.