Grant Monitoring and Reporting: What Funders Expect

Winning a grant is the start of a relationship, not the end of the job. Every funder expects you to show how the money was spent and what it achieved. The good news is that reporting is far easier if you set up a few simple habits on day one. This guide covers what funders usually ask for, how to collect it without drowning in paperwork, and how to write a final report that helps your next bid.

Start with your offer letter and terms

Before you spend anything, read the grant offer and terms and conditions carefully. They will tell you:

• What the money can be spent on, usually the budget you submitted, and whether you can move money between budget lines.
• When you must spend it by. National Lottery Awards for All England, for example, asks for funding to be spent within an agreed period of up to two years.
• What reports are due and when, such as a progress report every six or twelve months and an end of grant report.
• What needs the funder's permission, such as changes to the project, the people you serve or major purchases.
• How to acknowledge the funder, for example using their logo.
• How long to keep records.

Put every reporting deadline in a shared calendar straight away, with a reminder a month before.

What funders want to know

Almost every funder's reporting comes down to two questions.

1. How did you spend the money?

Funders need to account for their money, and grants from public sources such as the National Lottery come with strict rules. Keep:

• invoices and receipts for every purchase
• bank statements showing payments
• payroll records if the grant pays salaries
• a simple spreadsheet that tracks spending against each budget line

The National Lottery Community Fund's guidance for Awards for All England is a useful benchmark. It says it may ask to see receipts, invoices and bank statements at any time during the project and up to seven years after it has finished. It also says you can only withdraw up to £100 in cash at a time, agreed by two people running the project, and that you must keep receipts for anything bought in cash.

2. What difference did it make?

This is about outputs and outcomes: what you delivered, and what changed for people as a result. If your application listed outcomes, report against each one. If you built a theory of change before applying, you already know what to measure.

Awards for All England asks grant holders to keep a record of how the project has benefited the community. It suggests online links, advertising materials, photos, testimonials and feedback from people who have benefited as the kind of evidence it may ask to see.

Simple systems that work for small organisations

You do not need specialist software. Most small groups manage well with:

1. A spending tracker. One spreadsheet with a row for each payment: date, supplier, amount, budget line and where the receipt is filed.
2. A receipts folder. Paper or digital, organised by month. Photograph paper receipts as you go.
3. An attendance or activity log. Date, activity, number of people, new or returning, and any notes. A shared spreadsheet or a paper register both work.
4. A short feedback method. A few questions asked at the start and end, a feedback card, or quick conversations recorded in a notebook. Keep it proportionate: three good questions are better than twenty that nobody answers.
5. A "stories" folder. Quotes, photos (with consent), thank-you messages and examples of change. These bring reports to life.

Spend fifteen minutes a week keeping these up to date. It saves days of panic when a report is due.

Collecting evidence fairly and safely

• Ask permission. Get consent before using anyone's photo, quote or story, and explain how it will be used.
• Protect personal data. Collect only what you need, store it securely and follow data protection law. The Information Commissioner's Office publishes guidance for small organisations.
• Make feedback easy. Offer short paper forms, verbal feedback or pictures for people who find forms difficult.
• Record the honest picture. Negative feedback helps you improve and makes your report more credible.

Telling the funder about changes

Projects rarely go exactly to plan. Funders know this. What they do not like is finding out late. Awards for All England, for example, asks grant holders to let it know if:

• the main or senior contact for the project changes
• you need more time to finish the project
• you have finished and have more than £1,000 of funding left over
• the project supports different people than stated in the application
• you want to spend the funding on things not in your application
• you can no longer carry out the project

Other funders have similar lists. As a rule, contact your funder before you make a significant change, not after. Explain what has changed, why, and what you propose. Most funders will work with you.

Progress reports

Larger and longer grants usually include progress reports during the project. These are a chance to show the project is on track and to flag problems early. Typical questions are:

• What have you done so far, compared with your plan?
• How much have you spent, compared with your budget?
• What early outcomes are you seeing?
• What has gone well, and what has been harder than expected?
• Are there any changes you need to agree?

Keep progress reports factual and brief. If something is behind schedule, say so and say what you are doing about it.

The end of grant report

Most funders ask for a final report. Some, such as the National Lottery Heritage Fund for its £10,000 to £250,000 grants, hold back the last part of the grant until it arrives: it pays 20% in arrears once it has a completion report, an evaluation and proof that you acknowledged the grant. Others, including Awards for All England, do not ask for updates unless they request them, but still expect you to keep records.

A good end of grant report usually covers:

1. What you did: activities and outputs against your plan.
2. What changed: outcomes, with numbers and examples.
3. How you spent the money: actual spend against budget, with explanations for any big differences.
4. What you learned: what worked, what did not, and what you would do differently.
5. What happens next: how the work or its benefits will continue after the grant ends.
6. Acknowledgement: how you credited the funder.

Be honest about shortfalls. A report that admits a target was missed and explains why is far more convincing than one where everything went perfectly.

Underspends and overspends

If you finish with money left over, do not quietly spend it on something else. Contact the funder. They may let you use it for related costs, extend the project or ask for it back. Overspends are your responsibility: the Heritage Fund, for example, says it cannot give you more than the grant it awarded, and if you spend less than expected it will not pay the full grant. Track spending monthly so neither surprise you.

Make reporting work for you

Good monitoring is not only for the funder. It shows you what is working, gives you evidence for your next statement of need, and gives future funders confidence. When you apply again, a track record of clear, honest reports is one of the strongest things you can offer. Our guide to how funders assess applications explains why.

Plan your next grant

When your current grant is coming to an end, start looking for the next one at least six months ahead. GrantMatch lists open grants for charities and community groups, including rolling programmes such as National Lottery Awards for All England. Set up a free profile and we will alert you when new grants that fit your organisation open.