Grant Management Software: Simplify Nonprofit Grant Tracking

Grant management software tracks grant applications, budgets, spending, deadlines, and compliance requirements in one system — replacing spreadsheets with automated reminders, real-time budget monitoring, and funder-ready reports. The best approach is software that integrates grant tracking with your fund accounting: Alignmint (free tier, grants tracked as funds), Sage Intacct ($25K+/year, enterprise grants module), and Submittable (standalone application tracking). The key feature: when you record an expense against a grant, it should automatically update the grant budget, the general ledger, and your financial reports.

Why Grant Management Software Matters

Grants aren't just money — they're contracts. Every grant comes with conditions: how the funds can be spent, what outcomes you need to report, and when reports are due. Miss a requirement, and you risk losing current funding and future eligibility.

Here's what happens without proper grant management:

• Missed deadlines: A late report can jeopardize your relationship with a funder
• Budget overruns: Without real-time tracking, it's easy to overspend a grant before the period ends
• Compliance gaps: Funders expect detailed documentation of how their money was used
• Audit risk: If your grant records don't match your financial statements, auditors will flag it
• Staff burnout: Your team spends hours each month manually reconciling grant data across spreadsheets

Grant management software solves all of these by centralizing your grant data and connecting it to your fund accounting system.

Key Features to Look For

1. Centralized Grant Database

Store all grant details in one searchable place: funder name, award amount, restrictions, deadlines, contacts, and supporting documents. You should be able to see every active grant at a glance and drill into any one for full details.

2. Budget and Expense Tracking

This is the most critical feature. Your software should let you set up a budget for each grant, then track actual spending against that budget in real time. When someone records an expense, it should automatically deduct from the right grant budget.

Look for software that supports:

• Line-item budgets: Track spending by category (personnel, supplies, travel, etc.)
• Budget vs. actual reports: See how much you've spent and how much remains
• Overspend alerts: Get notified before you exceed a budget line
• Multi-year grants: Track budgets across fiscal years

3. Automated Deadline Reminders

Set up alerts for every important date: application deadlines, interim reports, final reports, and deliverable milestones. The best systems send reminders to the right staff members at the right time — not just one person.

4. Compliance and Reporting Tools

Funders want to see exactly how their money was used. Your software should generate funder-ready reports that show:

• Budget vs. actual spending by category
• Narrative progress on deliverables
• Supporting documentation (receipts, invoices, timesheets)
• Financial statements that tie back to your general ledger

5. Integration with Accounting and CRM

This is where most standalone grant tools fall short. If your grant management software doesn't connect to your accounting system, you're maintaining two sets of books. Every expense gets entered twice, and reconciliation becomes a monthly headache.

The ideal setup is a platform where grant tracking is built into your fund accounting — so when you record a journal entry or expense, it automatically updates the grant budget, the fund balance, and your financial reports.

6. Document Storage

Attach supporting documents directly to grants: award letters, budgets, amendments, reports, and correspondence. When an auditor asks for documentation, you should be able to pull everything from one place.

The Real Cost of Manual Grant Tracking

Most nonprofits start with spreadsheets. Here's what that actually costs:

Task	Spreadsheet Time	With Software
Monthly budget reconciliation	4-8 hours per grant	Automatic
Quarterly funder reports	6-12 hours per report	30 minutes
Year-end audit prep	20-40 hours	2-3 hours
Deadline tracking	Constant calendar checking	Automated alerts
Staff training	Weeks to learn the spreadsheet	Hours to learn the system

For a nonprofit managing 5 grants, that's 200+ hours per year spent on manual tracking. That's time your team could spend on programs.

Common Grant Management Challenges

Challenge	Root Cause	Software Solution
Missed deadlines	No centralized calendar	Automated reminders by role
Budget overruns	Delayed expense recording	Real-time budget tracking
Compliance gaps	Disconnected systems	Integrated accounting + grant tracking
Funder report delays	Manual data gathering	One-click funder reports
Audit findings	Inconsistent records	Single source of truth
Staff turnover disruption	Knowledge in one person's head	Documented processes in the system

How to Choose the Right Grant Management Software

1. Start with your accounting: If your grant tracking doesn't connect to your accounting system, you'll always have reconciliation problems. Look for a platform that handles both — like Alignmint's fund accounting with built-in grant tracking.

2. Count your grants: Some tools charge per grant. If you manage 10+ grants, per-grant pricing adds up fast.

3. Check reporting flexibility: Can you generate the specific reports your funders require? Every funder has different formats and requirements.

4. Evaluate the learning curve: Your program staff will use this tool, not just your finance team. It needs to be intuitive enough for non-accountants.

5. Ask about restricted fund tracking: Grants are restricted funds. Your software needs to track restrictions, monitor spending, and prevent commingling of grant dollars with general operating funds.

6. Test with a real grant: Before committing, set up one of your actual grants in the system. Enter real expenses. Generate a real report. See if it matches what your funder expects.

How Alignmint Handles Grant Management

Alignmint builds grant tracking directly into its fund accounting platform. There's no separate module to buy, no data to sync, and no reconciliation needed.

Here's how it works:

• Create a fund for each grant: Set up the budget, restrictions, and reporting period
• Track expenses automatically: Every expense tagged to a grant updates the budget in real time
• Generate funder reports: Pull budget vs. actual reports by grant, by category, by period
• Monitor balances: See remaining grant funds on your dashboard alongside all your other fund balances
• Stay compliant: Automated alerts for deadlines and budget thresholds

Because grant tracking lives inside your accounting system, your financial statements always match your grant reports. No more reconciliation headaches.

Ready to simplify your grant management? Schedule Your Free Setup | Explore Features

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Related:

• Nonprofit Grant Management — From application to reporting
• Fund Accounting Software — Complete guide to fund accounting
• Restricted Funds Tracking — How to track donor-restricted grants
• Nonprofit Financial Reporting — Reports your funders expect
• Fund Accounting — See how Alignmint tracks grants