Advantages of Grant Management Software

Grants management platform is best for grants management system

Question: Is extending a platform built for a specific purpose e.g. a CRM a good solution instead of a purpose-built platform e.g. a GMS?

Answer: A generic solution that requires bespoke development is not as good a choice as a “purpose-built” solution covering all eventualities that may be required. While some CRM’s offer tools for extension, the CRM plus the extension does not deliver the same functional completeness as a “built for purpose” solution designed for a specific purpose such as grants management.

What does “advantages” really mean for grant teams?

When discussing the advantages of Grants Management Software (GMS), the focus should be on the tangible benefits that make a real difference. These effects should be felt in daily operations, not just on technical specifications. For grant teams, the main advantages are typically seen in faster decision-making, better clarity across workflows, and the reduced risk of human error or compliance failure.

Organisations adopt GMS to improve the efficiency and effectiveness of their grant programs. Beyond IT considerations, grant management software creates a smoother approach to managing grants, from initial setup right through to closing out grants. Advantages show up day-to-day in terms of:

• Speed: Quick program setup, faster application processing and reduced review cycles.
• Clarity: Centralised data providing real-time insights for better decision-making.
• Reduced Risk: Automated compliance checks and audit trails ensure grant programs meet governance standards and minimise legal risks.

By focusing on these outcomes, organisations can better serve their communities, improve fund allocation and ensure proper stewardship of taxpayer funds.

Broad enterprise platforms vs specialist SaaS solutions

The commercially available software platforms have until recently focused on providing broad functional solutions such as Sales, Accounting, HR and CRM. Newly emerging SaaS solutions for specialist market sectors (for example grants management) provide highly advanced sector specific functionality, greater fit-for-purpose, shorter time to deploy, reduced cost and reduced risk.

Specialist (built for purpose) solutions provide a functionally complete end-to-end solution as distinct from extending a platform that is designed for a different area of specialisation e.g. FMIS, HR, ERP or CRM. Each specialist solution provides out-of-the-box (OOTB) function rich and complete capabilities that are simply not possible to replicate on non-specialist platforms e.g. FMIS cannot be extended to replicate the richness of a CRM solution or a CRM cannot be extended to replicate the richness of a GMS solution.

The risk of extending systems beyond their purpose

This is not to doubt the value provided by enterprise solutions like FMIS, HR, Marketing, and Customer Relationship Management (CRM) which in their own golden zone offer competent solutions delivering the outcomes they are designed for.

The problem is using them for functions, for which, they are not designed. Extending them into these areas potentially has high costs and significant lifecycle risks. The choice to extend an existing system e.g. a CRM to perform grants management functionality potentially brings with it significant additional difficulties and risks that might not have been fully considered upfront.

A logical comparison

It is unlikely that any organisation would embark on new development to build a new bespoke HR system on a FMIS even if tools are available to do so when “best of breed” HR SaaS solution is readily available out-of-the-box, covering all cases. This leads to posing a logical question: “Why would you choose to use a generic CRM solution that requires explicit development to extend it to have some grants capability when a functionally complete SaaS grants solution covering all potential requirements is available out-of-the-box?”

Why purpose-built GMS delivers better outcomes

For grants deployments, a purpose designed GMS (such as OmniStar Grants), brings a track record and proven implementation across a wide range of different grant types. As a complete solution for grants, it facilitates unparalleled deployment choices of specific options across all phases of the grants lifecycle. GMS (such as OmniStar Grants) also facilitates business agility without the need of IT specialists to make business driven changes. Business users can make changes themselves.

Cost, risk and long-term impact of CRM extensions

Deploying a generic CRM (like Salesforce or Dynamics CRM) and then performing the necessary bespoke development to instantiate the functionality, with all the attendant design, build and test cycles, sprint cycles and potential for quality and performance issues, represents a much higher level of risk and cost.

In addition, it is likely such development will entail only the minimum viable solution required and certainly not the valued, comprehensive solution. This choice has long term impact. As lessons are learnt, and modifications to elements of the grants lifecycle are contemplated, or mandated by Government fiat, specialist SaaS GMS solutions (which are inherently more complete) will have lower conformance costs, higher robustness and shorter deployment cycle time.

The myth of a single platform

Whilst the desire to have one generic platform with one set of training required for the whole enterprise might seem attractive, particularly when the internal IT skill infrastructure is small, it should be recognised that sales/marketing (CRM) and FMIS probably already operate using different vendor solutions. Specialist GMS solutions (e.g. OmniStar Grants) are built for business users, thus, they do not require IT skills to operate them.

When one platform doesn’t fit all

An often-overlooked factor using a CRM to deliver grants can be that disparate activities may be lumped together for convenience at the expense of competency. Imagine that you have CRM marketing tool (Salesforce) deployed successfully and you consider extending this to run your research grants program. In this scenario the catchments i.e. Growers and Researchers are quite distinct and different.

There is no overarching business logic compelling one platform. Far better to deploy two separate optimised purpose-built solutions (with API’s if necessary) where each component is optimised for its intended function. Resulting in a far more elegant solution overall.

How advantages of grant management software translate into the grant lifecycle

The real power of purpose-built GMS is seen when its advantages extend across the entire grant lifecycle. This is how each stage is supported:

• Pre-award: Grant management software simplifies program setup by enabling the creation of custom eligibility criteria and simplifying application workflows. Automated eligibility checks mean less manual review times for more consistent work.
• Award: During the award phase, GMS supports transparent assessments, facilitates approval workflows and helps manage agreements. The system makes for clearer decision-making, with auditable actions that can be traced right back to individual users. This minimises risk of errors and non-compliance.
• Post-award: Monitoring and reporting are simplified with real-time data tracking, automated milestone reporting and compliance checks. This phase gives a more comprehensive view on how the funds are being used, meeting regulatory standards and helping grantees achieve the desired outcomes.
• Close-out: The close-out phase involves acquittal, evaluation and preparation for audits. GMS automates the generation of acquittal reports, whilst preparing for audits by maintaining complete, structured records of all activities. Every grant is properly closed and documented for future reference.

Key success factors

The key success factor of each successful SaaS solution (i.e. what makes a great FMIS) is its measure of success in delivering the specific functionality required by its users. That is certainly true of most GMS’ but not at all true in CRM’s that promote to deliver grants solutions.

So, what are the key success factors determining great built-for-purpose SaaS solutions?

• Include all the required functionality, out-of-the-box.
• Nothing to build; only ability to configure.
• Rapid initial set up and subsequent fine-tuning via configuration.
• Low lifetime maintenance cost.
• Initial cost of acquisition is reasonable.
• Published, open API’s can be readily integrated with other services.
• Evolves with the need of the organisation and market, supports range of grants workflows via configuration and not add-ons.

To compare the ability of grants solutions to be deployed by CRM’s like Dynamics CRM and Salesforce the evaluation matrix provides guidance.

Evaluation Matrix

*Salesforce demonstrations promote Lightening as the development environment; however, its suitability for application integration of external fragments, is highly unlikely.

(1) Dynamics CRM and SalesForce CRM are not Grants built-for-purpose solutions – they are marketing and CRM Solutions. While they are competent at CRM functionality the same is not true of Grants functionality.

Reinforcing governance and compliance with GMS

A key advantage of grant management software is the standard of governance, compliance and audit-readiness that can be maintained. These systems provide essential tools to meet regulatory and reporting requirements, especially in sectors like government and research. The advantages are clear:

• Defensible decision-making: With GMS, every decision - whether approving an application or allocating funds - is documented. The process is traceable, providing a defensible audit trail for complete transparency and accountability.
• Separation of duties: GMS platforms facilitate role-based access and approval workflows, so critical processes like assessment, recommendation and approval are kept separate to prevent conflicts of interest.
• Audit-ready records: All actions within the system are logged and can be reviewed at any time. With GMS, organisations can rest assured that they are always audit-ready.
• Reduced organisational risk: By centralising processes and automating compliance checks, the chances of human error are reduced. Non-compliance and the risk of grant mismanagement are also minimised, helping mitigate potential legal or financial dangers.

How GMS benefits a range of stakeholders

Purpose-built GMS solutions deliver specific advantages to different groups involved in the grant process:

• Grant administrators: GMS simplifies day-to-day operations by automating routine tasks, reducing manual work and keeping the process consistent. Grant administrators are able to focus on strategic tasks, such as providing support to grantees and evaluating program outcomes.
• Finance and compliance teams: With built-in reporting and real-time data tracking, finance teams can keep track of budgets, monitor spending and remain compliant with regulations. This means more efficient financial oversight and more controlled resource management.
• Executives and leadership: GMS provides senior leaders with centralised visibility into all active grants, key performance indicators (KPIs) and compliance statuses. This helps executives make data-driven decisions so strategic goals can be met.
• Applicants and grantees: GMS makes it easier for applicants to submit proposals and stay up to date with application status. For grantees, it simplifies reporting and tracking fund utilisation, boosting transparency and reducing administrative burden.

Manual processes vs dedicated GMS

In the modern grant process, compliance, reporting and scalability are more important than ever. Here’s how a GMS addresses current and future needs, beyond what CRM extensions can provide:

• Increased compliance and reporting scrutiny: Today’s grant programs face heightened regulatory scrutiny, requiring detailed reports and real-time data access. A GMS automates compliance checks and generates audit-ready reports to reduce burden on administrative teams.
• Reactive tracking vs proactive oversight: In manual systems, tracking applications and funding progress can be reactive. A GMS doesn’t wait until issues arise to address them; they provide proactive tracking and notifications, so teams are always on top of important dates and requirements.
• Fragmented data vs single source of truth: With manual methods, it’s difficult to obtain a comprehensive view of each grant because data is scattered across multiple files or systems. A GMS consolidates all grant-related data in one system, building a single source of truth for all-round better decision-making.

Meeting Modern Expectations with GMS, not CRM Extensions

In the modern grant process, compliance, reporting and scalability are more important than ever. Here’s how a GMS addresses current and future needs, beyond what CRM extensions can provide:

• Increased compliance and reporting scrutiny: Today’s grant programs face heightened regulatory scrutiny, requiring detailed reports and real-time data access. A GMS automates compliance checks and generates audit-ready reports to reduce burden on administrative teams.
• Outcome and impact measurement: Funders are increasingly expecting to see tangible results and impact from their investments. GMS platforms include robust monitoring tools to track outcomes and measure the effectiveness of funded projects.
• Scaling grant programs Without Scaling Headcount: As grant programs grow, a GMS can scale with ease without requiring additional staff. The automation of key processes allows teams to manage larger volumes of grants without compromising quality or efficiency.
• Configuration without custom development: With a purpose-built GMS, you can configure workflows, approval processes and reports to meet your specific needs without requiring costly custom development. This flexibility ensures the system can evolve with changing business requirements and regulatory standards.

Find out more why grant management platform is better for managing grants

It is clear that for built-for-purpose Grants SaaS solution, such as OmniStar which is available out-of-the-box is a better choice as:

• Includes all required functionality without need of any development.
• It is quickly deployable.
• Reasonable cost.
• No additional ongoing maintenance costs.
• No ongoing upgrade costs.
• Modifiable by business users and no ongoing IT support costs required.

To put metrics to this, an initial best practice version of OmniStar Grants can be deployed within 4 to 5 weeks, and then using agile methodology progressively fine-tune to meet detailed and complex requirements.

To summarise, you would not set out today to build a new FMIS by bespoke development; so why take on the risk and cost of a bespoke grants development on your CRM platform as the base? Grants Management Platform is best for grants management Solution. Contact us for more information or book a demo today!