Last year was an unusually demanding period for grant managers across the nonprofit sector, particularly those overseeing government-funded programs. Sudden funding freezes and unexpected grant terminations created significant operational strain, but they also generated valuable insight. Nonprofit organizations emerged with a clearer understanding of how to prepare for uncertainty and strengthen long-term resilience.
Lessons Learned from a Year of Disruption
Funding disruptions underscored the critical importance of diversifying revenue streams and partnerships, maintaining adequate cash reserves, and keeping contingency plans current. As leadership teams and boards revisit strategic plans and standard operating procedures, this moment offers an opportunity to highlight the practices that proved most valuable for grant managers navigating these challenges.
A key factor in the relative “success” of organizations that faced sudden grant funding terminations was their ability to respond quickly to meet the new requirements demanded by unforeseen changes. Management teams with standard operating procedures intentionally designed to promote a strong understanding of grant terms, foster solid relationships with Grant Management Specialists (GMS), and improve knowledge of the regulations governing their agreements were able to efficiently shift their attention to a new operating environment.
Grant managers consistently attributed their ability to mitigate the risk of funding losses to well-established SOPs and leadership’s commitment to operating within those procedures.
Practices That Improved Grant Management Efficiency
Several practices and procedures stood out as particularly effective in supporting grant management efficiency:
- Maintain an inventory of active grants updated at least monthly. Grouping grants by funding agency will help assess the risk of the grant portfolio.
- Establish frequent communications with the GMS: specialists are often a key source of useful information on changes of the funding status and timing. Communicating with the GMS not just at reporting deadlines enhances the GMS’s engagement to the mission of the organization and its teams.
- Understand applicable regulations: Guidelines for terminated grant funds recipients are contained in the Uniform Guidance 2 CFR Part 200 while contractors must refer to the Federal Acquisition Regulations.
- Confirm with the termination clause in the grant agreements: while regulations identify in general terms the allowable costs to be included in the case of early termination, agreements may explain this in greater detail.
- Complete a risk assessment of the grant portfolio: create a committee including but not limited to grant managers, legal counsel, finance advisors, and the development team to assess the entity’s exposure to funding threats.
Final Thoughts
The challenges of 2025 reinforced that strong grant management is rooted in preparation, clarity, and disciplined execution. Organizations with intentional SOPs and informed leadership were better positioned to navigate uncertainty and protect their missions.
Han Group takes pride in working with clients to design intentional, customized SOPs aligned with their needs and capacity. Our accounting professionals become an extension of our clients’ teams, helping adopt effective practices and procedures that support continuity and long-term resilience. To learn how we can support your grant management strategy. Contact us.
