In the past, reporting on grants received has been a dicey subject for some nonprofits. There is a perception that reports to funders aren’t read, or aren’t read by those with the capacity to act on the information in the reports. Reports get a bad rap for being onerous to create, as well.
So it’s understandable if some nonprofits fail to see (or look the other way on) the requirement to report on their funded activities.
Grantees, beware: there can be stiff consequences to the funded organization that fails to report.
In our EPIcenter benchmarking library, GMN members report a variety of penalties for failure to report.
- 56 percent of participating funders say that those who fail to submit reports are ineligible for future funding.
- 5 percent of funders say that future payments are not made on multi-payment grants until reporting requirements are met/caught up.
- Just over 6 percent of participants go further than withholding future funds—they require return of the funds that weren’t reported on!
On the other end of the spectrum, we found what might be the source of the soreness around reporting and the time time it takes to do so: 5 percent of funders participating in our benchmarking library so far said there are no consequences for grantees who failed to report. Which makes us wonder: why require the report in the first place?
GMN will keep digging in to this issue and will provide an update when additional funders have participated in the Grantee Reporting survey in the EPIcenter.
Are you participating in the EPIcenter? Find out today how you can compare your practices to those of other funders while informing the field about opportunities to improve practices.