Why UK Funders Are Rethinking Their Grant Management Systems

hands on keyboard

Across the UK’s philanthropic sector, funders are taking a hard look at the systems they use to manage grants, and many are deciding it’s time for a change. In 2023-24 alone, the UK government awarded around £153.2 billion in grants, equivalent to 12.5 per cent of total public spending. 

With increasing pressure to reduce administrative burdens, meet the expectations of diverse stakeholders, and make more impactful decisions, UK grantmakers are reevaluating whether traditional grant management systems (GMS) still measure up.

This shift isn’t just about upgrading software; it reflects a broader transformation in how funders approach transparency, efficiency, and impact. As expectations rise and resources tighten, organisations are beginning to explore what modern grant management truly requires and what it will take to achieve it.

What’s driving the shift for UK grantmakers?

Grantmakers across the UK, including both independent funders with trustees and government bodies with internal panels and decision-makers, face mounting expectations from grantees and the communities they serve. These expectations include faster response times, clearer communication, and greater transparency in the funding decision-making process.

In 2021-22, the Department for Education published 107,000 individual grant awards across 194 schemes. And with the government projecting that nearly £40 billion in grants will be advertised across departments via the ‘Find a Grant’ service by 2025, the need for efficient, transparent systems has never been greater.

Yet, many teams are stuck using outdated, fragmented systems that create more work than they solve. It’s not just about speed, it’s about reclaiming time for what really matters: assessing community needs, making thoughtful decisions, and supporting long-term change. 

When you think about that, it’s little wonder UK funders are rethinking the technology that underpins their work.

Where traditional grant management systems fall short

Between 2015 and 2019, councils were issued 448 individual government grants, often tied to short-term initiatives. Despite this volume, funding dropped by 16 per cent, pushing local authorities to manage more programmes with fewer resources. 

In such conditions, the absence of an efficient, connected grant management system becomes more than an inconvenience; it becomes a serious obstacle to delivering public value.

Despite good intentions, traditional grant management systems often hinder progress. They typically rely on rigid workflows and manual processes that require staff to spend hours duplicating data or chasing status updates. Limited customisation means teams must work around the software, rather than the other way round.

Onboarding new staff? That’s often a pain. 

Poor user experience can make training and collaboration cumbersome, especially when systems aren’t intuitive or cloud-accessible. Let’s face it, no one wants to spend a whole afternoon figuring out how to upload a funding report.

And the worst part? These limitations not only waste time but also introduce risk, complicate reporting, and damage trust with applicants and staff alike.

What to look for in a modern grant management system

If you’re still wrangling spreadsheets and juggling email threads, it might be time to give your current system the sack. A modern grant management system should be an enabler, not an additional burden. It should support, not slow down, the good work funders do.

So, what does that look like in practice?

  • Configurable workflows that mirror your internal approval processes. No need for costly bespoke development.
  • Intuitive interfaces that make it easy for staff and grantees to get up and running quickly.
  • Cloud-based access that supports hybrid or remote teams without compromising security or collaboration.
  • Role-based permissions to ensure everyone, from applicants to reviewers, sees only what they need to.
  • Compliance monitoring that lowers risk and maintains transparency.
  • Performance tracking with real-time data.
  • Financial data integration for effortless accounting. 

In short, a modern grant management system should feel less like a complex tool and more like a reliable teammate who knows how you work.

Real operational improvements from the right system

Rifling through folders or scrolling endlessly for that one form submission is a proper hassle. And funders who switch to smarter systems often report immediate wins. Automation can handle mundane tasks such as status updates and reminder emails, allowing staff to access the data they need with just a few clicks.

This clarity supports faster reviews, more accurate reporting, and perhaps most importantly, better funding outcomes. And let’s not overlook the improved experience for applicants. When the process is smooth and transparent, it eases the burden on your whole organisation.

Choosing a grant management system that works for UK funders

Not all grant management solutions are built with funders in mind. That’s why it’s crucial to choose a system that reflects the realities of your context, from compliance to collaboration.

The table below outlines key features to look for in a modern GMS, along with why each one matters for UK-based grantmakers:

FeatureWhy it matters
UK-specific configurationAligns with local compliance requirements and the expectations of relevant regulatory bodies, such as the Charity Commission
Cloud-based accessSupports flexible, hybrid, or remote team collaboration
Configurable workflowsMirrors real internal processes without custom development
Role-based access controlsEnsures appropriate permissions for all involved, including staff, reviewers, finance, and applicants
Integrated communicationCuts back on emails and keeps every stakeholder informed in one place
Audit-ready documentationSimplifies internal reviews and external reporting
Unlimited usersNo added cost as your organisation grows
Human-first support and onboardingSaves time by making the system easier to adopt and scale

The right grant management system should do more than manage grants; it should enable better decision-making, reduce friction for staff and grantees, and grow with your organisation. By focusing on tools designed for your specific needs, funders can lay a stronger foundation for long-term impact.

How funders benefit from smarter grant management systems

Modern GMS platforms, such as Foundant, are built with funders in mind. That means less faff and more impact.

Staff can focus on decision-making instead of chasing down information. Applicants are guided through transparent, user-friendly processes. And everyone benefits from timely communication and shared visibility.

Smarter systems also enable funders to report on outcomes more accurately, which is a must-have in today’s impact-focused climate. Whether you’re preparing committee materials or demonstrating accountability to your community, a transparent, well-documented system builds confidence.

Start a conversation about your grant management needs

If your current system feels more like a burden than a benefit, it might be time to consider something better. Upgrading your traditional grant management system isn’t just a tech decision; it’s an investment in your impact and your team. 

At Foundant, we work with UK funders to deliver software that fits your organisation today and scales with you tomorrow. Our solutions are built with flexibility, transparency, and ease of use at their core, so you can get back to doing what you do best: making meaningful change.

Foundant helps UK funders save time, reduce complexity, and focus on what matters most.

Learn more about our grant management systems built for funders like you.