Time and expenses: are you capturing the data you need to secure funding

Applying for funding is difficult enough but if you don’t have a strong grip on time and expenses, you could find that funding is refused.

So how do you know if you’ve covered everything the funder’s looking for? Here are a few pointers to guide you:

Are the funds being spent wisely?

The funder wants to be confident that a not-for-profit (NFP) organisation will use the money for the purposes in which it was intended. Having visibility of overall spend against income with a clear process for time and expense management, shows attention to detail and an appreciation for costs control. Having fiscal discipline as an organisation – and the processes in place to manage that – can’t be underestimated. Ultimately, the funder wants to gain insight into how you’ll ensure that the funds will go towards the actual cause and not simply your administration.

Do you have the right resources in place - and are they’re well managed?

How many staff and volunteers do you have to assign to events or projects? How do you know when they’re available? Can you match the right people to the right projects? All of this matters a great deal to the funder. Effective management here makes it more likely that you’ll win the funding. Volunteers may only work with you during specific time periods or on a project-by-project or event-by-event basis. The funder will want to be sure that you’ve not only got the right people but they’re available when needed. And they’ll want to know that you have adequate processes in place to manage resources throughout the project’s lifecycle.

Do you have the mechanisms in place to keep tight control of funds?

With so many NFPs going after the same funding, competition is fierce. Funders, therefore, want to see that you have solid time and expense systems in place. Having robust policies and procedures lessens the likelihood of expenses, time and absence being abused. Cast your mind back to the MPs’ expenses scandal! Any incident such as this, not only reflects badly on the NFP but potentially on the funder too. Reputations are at risk and funders know this. Accountability and responsibility is everything in the NFP sector.

Are you able to meet their reporting requirements?

Funders are going to want reports to see how you’re progressing with the project they’ve funded. External reports including time and expense management will be vital. Being able to pull the information without much fuss will also be less stress internally as well. They’ll most likely want an evaluation at the end of the project and this will include a final analysis on how the funds were spent. Being able to evidence this, in detail where necessary, is paramount – particularly if you were to apply for funding with them again in the future.

The need for effective project-based accounting systems, alongside simple to use time and expense management software is clear – you can show stakeholders that you are maximising the correct use of funds, that the money is being spent wisely and that there is total visibility and transparency. Without it, your funding could be in jeopardy.