NFPs (Non-profit organizations) depend on grants and funds to maintain their programs and services. Many aspects are considered, from preparing grant reports, grant proposals, and impact reporting, to submitting the final copy to the management. The accurate grant reporting lets the funding organizations know that the NFPs have spent the grant the way they stated in their reports. However, there are a few best practices that NFPs need to follow before the IRS audits their fund reporting.
Let’s check out a few effective best practices.
Curate a Compelling Background with the Grant Report
By creating a detailed financial reporting schedule, you will know how much funding the organization requires. So, build a relationship and tell your story to the funder. It is best to give specific details instead of writing long paragraphs. Your storytelling should be done to tug at the reader’s heart without losing the mission’s primary focus. The personal relationship built with the funder will significantly push your charitable contributions.
Structure Grant Reports to Build Relationships with the Funder
Structure your grant reports so the funder will look forward to your proposal without getting interrupted when going through the whole report. They should see the focus and passion in your NFP organization. The structured grant requirements will help get your project due recognition. NFPs can achieve their objective of purchasing the required equipment and supplies. Contact the program managers to discuss the relevant tasks if you need support and funds.
Fulfill the Compliance Requirements
Your Not-for-Profit organization must comply with the grant funding process to avoid problems during the tax audit. It will prevent the risk of returning the funds. Your Non-profit organization will achieve its objective of building credibility in the community. It will help you get the grant deliverables. Moreover, the grant compliance requirements include the following:
- Meeting grants accrual deadlines.
- Program requirements.
- Applicable costs as per your NFP budget and preparing interim and final reports.
Act-On Suggestions
As an NFP organization, you must ask your funder about your application process. It will help you to know about the progress of your application. Ask for suggestions; it will help you improve your fundraising process. The best part of getting recommendations will be completing the objective of accomplishing the community projects that may be lingering for a long time.
If you are an NFP, get the IRS in MN audit done by one of the reputed Minneapolis accounting firms, Prudent Accountants. You can contact the Minnesota bookkeeping firms’ experts to help you with the audit process from beginning to end. Call them today!
