‍Introduction 

In our previous blog post, we discussed grant reporting and how a grant report's integrity and thoroughness significantly impact the relationship between a grantor and a grantee. While most grantees, such as large corporations, find the process simple, many startups need help to develop a grant report due to their inexperience with grant reporting. This blog post will review some difficulties startups face when preparing grant reports.

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Flashback: What is a grant report?

A grant report is a well-structured document that provides insights into the progress of a project by outlining expenditures, achieved goals, and the resulting impact. But it's more than just a legal requirement; it's a tool that allows startups to improve their operations, build trust, and showcase their achievements.

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Challenges faced by startups when preparing a grant report 

Due to the size and experience of many startups, they are often confronted with some of the following challenges: 

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1. Time Constraints

Startups often need help finding time for essential tasks like collecting data, evaluating project results, and creating detailed reports. Moreover, startups need to gather and study data to show the impact of their projects in their grant reports. They have to manage their daily activities, ensure their funded projects stay on track, and prepare grant reports. This process can be both time-consuming and challenging for many. This balancing act leaves them with limited hours in a day.

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2. Mismatch in Impact measurement

Startups need to gain experience in measuring and evaluating the impact of their projects. This can make providing meaningful data and insights in the report difficult. Startups often face the hurdles of reconciling project reality with the projected metrics in the grant application. Sometimes, determining how to measure the impacts of a project with intangible outcomes can be difficult. This is especially true when the grantor’s reporting template does not resonate with the project's reality. 

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3. Tracking and Managing Expenses

Accurate financial reporting is critical in grant reporting. For startups with no accounting knowledge or inadequate record-keeping skills, managing budgets, tracking and categorizing all project-related expenses, and reconciling financial data take time and effort.

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4. Multiple Report Burden

The requirement for financial assistance distinguishes startups. A startup may receive funding from various sources, each with its own grant reporting requirements. For startups, managing multiple grant reports can be overwhelming.

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5. Maintaining Consistency and Transparency

Startups may need help to balance the need for transparency and the risk of disclosing sensitive or confidential information in their reports. Startups may believe that including such information increases transparency and that not including it jeopardizes their integrity if funders discover it.

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6. Addressing Unforeseen Challenges

Startups are often fragile and may quickly pivot or change their priorities. This can lead to difficulties in aligning the grant report with the original project proposal. During the project's implementation, unexpected challenges or setbacks may occur. Unexpected challenges can be beneficial or detrimental. Many startups lack shock absorbers in the event of unfavorable ones, affecting their full reporting or causing the report to be submitted late.

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7. Limited resources

Startups often have limited manpower and resources. They may need dedicated personnel with experience in grant writing or reporting, making it challenging to allocate time and expertise to the task. Allocating resources to grant reporting can distract from the startup's core activities. Balancing reporting requirements with the need to run and grow the business can be challenging.

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The good news is these challenges are solvable with simple, practical solutions. Here is how: 

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1. To Overcome Time Constraints

• Enhanced Time Management: Startups can overcome time limitations by being mindful of their time use. This means setting aside dedicated periods for grant-related tasks.
• Prioritizing Tasks: Identifying which tasks are most urgent and vital is essential. More time and resources can then be allocated to tasks directly relating to grant reporting.
• Scheduling Report Writing: To balance their daily business operations with grant responsibilities, startups should schedule specific times for grant report writing. This helps ensure they give it the attention it deserves without neglecting other crucial tasks.

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2. To measure project impact

• Use Quantifiable Metrics: When assessing the impact of projects, measurable indicators such as numbers or percentages should be used for tangible outcomes. This provides clear and concrete evidence of progress.
• Use Qualitative Indicators: Qualitative indicators should be considered for projects without quantified outcomes. These descriptive measures help convey the project's impact in words and narratives, providing a comprehensive view beyond just numbers.

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3. To Reconcile Accounting Figures

• Invest in Accounting Tools: For startups with no team members versed in accounting skills, investing in user-friendly accounting software or tools should be prioritized. These tools serve the same purpose as an accountant by streamlining the process of tracking expenses, income, and financial data to reduce errors and discrepancies.
• Hire Experts: Since the employment of accounting software may still require some human efforts, which the startup lacks, a better option is to hire a professional accountant or financial expert. These professionals use their expertise to improve the accuracy of accounting figures. 

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4. To Lessen the Burden of Multiple Report

• Create a Reporting Calendar: Develop a detailed grant reporting calendar on submission deadlines, report formats, and specific requirements for each funder. This calendar will serve as a visual aid that ensures deadlines are met, and reports follow each funder's guidelines.  It should be readily accessible. 
• Consider a Centralized Report: Most funders require the same information in the grant report but in different formats. Since it is the same project but with multiple funders, a single report can be written with similar financial and progress data but simplified to meet the requirements of the multiple funders. 

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5. To Scale the Hurdle of Transparency

• Understand the Grant Agreements: Before the disbursement of funds, there is an agreement signed between the grantor and the grantee. These agreements outline what information will remain confidential and what can be disclosed. As grantees, startups must read and digest the agreement's content to know what is expected and what is not. 

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6. To Address Unforeseen Project Challenges

• Proactive Contingency Planning: Life is full of ups and downs, so startups should anticipate challenges during a project. By expecting these challenges in advance and having contingency plans, startups can swiftly and effectively respond if issues arise.
• Maintain Open Communication: When unforeseen challenges occur, effective communication with funders is crucial. Keeping funders informed about difficulties or changes in the project's execution keeps funders aware of changes and adjustments to be expected in the grant report. This also helps maintain trust and transparency.

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7. To Manage the problem of Limited Resources 

• Training of Team Members: Alternatively, startups can Invest in training and capacity-building programs for their team members to learn how to write grant reports. This can help startups handle grant reporting more effectively and efficiently in-house. 
• Outsource Grant Reporting Task: Startups can outsource grant reporting tasks to experienced professionals in grant management. This approach allows the startup to focus on core activities while ensuring accurate and timely reporting.

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Conclusion 

Every stage of grant funding comes with its own peculiarities and sometimes challenges. This blog post has identified startups' challenges at the grant reporting stage and proffered solutions. Startups can overcome time constraints by carefully managing time, prioritizing tasks, and scheduling report writing to balance their daily operations with grant obligations. To measure the impact of a project with unquantifiable outcomes, clear qualitative indicators can be explored where numerical data falls short. Investing in accounting tools or hiring experts can streamline financial reporting and increase expense tracking accuracy. Lastly, addressing unforeseen challenges requires proactive contingency planning and open communication with funders.

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