Create and Process an Internal Grant

Internal grants send money from one fund to another fund.

1. Navigate to the Grants page. 
2. Click Create on the left-side menu. 
3. Enter the Source Fund and the Destination Fund then click Create.
   • Source Fund - Fund that the money is coming from.
   • Destination Fund - Fund that the money is going to.
     
     
     
4. Fill in the required fields of Grant Date and Amount and any other fields, and click Create. 
   • Grantee - Grantee is defaulted to the destination fund. If the destination fund is added to a supporting organization, the name of the supporting organization will populate in the Grantee field.
   • Grant Date - Date grant will be awarded.
   • Description - Grant description. This is available as a merge field in grant letters.
   • Grant Type - The grant type defaults to the Default Grant Type on the source fund but can be edited.
   • Service Area - The service area defaults to the Service Area on the source fund but can be edited.
   • Amount - Grant amount.
   • Conditional - Checking this box indicates that the recipient must do something in order to receive the next installment. Installments that are marked as conditional will have the expense and the payable reversed when the books are closed at year end. The reversal is made in a separate fund, so your fund statements aren't changing throughout the year. This fund can be set in Conditional Payment Fund in Grants Settings. The balance sheet will show a negative grants payable number for the Conditional Payment Fund, and the income statement will show a negative grant expense for the Conditional Payment Fund. This reversal is done when the books are closed on the last day of the year, and it is reversed on the first day of the following year.
   • Grant Advisor - The grant advisor defaults to the primary fund advisor on the source fund but can be edited.
   • Expense Account and Revenue Account - These default based on your chart of accounts but can be edited.
     
     
     
     • If you see Add Funding highlighted on the left-side menu, the granting fund does not have enough funds to cover the grant. You will need to click Add Funding to continue. Fund the grant from the open assets of the granting fund, an internal grant from a different fund at your foundation, or from an individual donation.
5. Edit the pay schedule to create multiple installments or edit the grant if needed, then click Post & Get Approval on the left-side menu.
   • An internal donation is automatically created.
     
     
   • General ledger transactions are recorded for Contributions - Internal and Grants - Internal. Balances will go into the Internal Grants Payable and Internal Grants Receivable accounts.
     
     
     
   • The grant is now in the approval bucket.
     • To approve a grant, you must be listed as a grant approver on the source fund.
6. Click I Approve in the left-side menu or [I Approve] next to the Approval on the grant record.
   • The grant is now in the voucher bucket.
   • If you don't see I Approve and I Reject and you think you should have these options, speak with your system administrator about your user permissions.
     
     
     
7. Click [approve payment] in the Grant Payment Schedule window.
   
   • If Auto Approve Grant Payments is enabled in Grants Settings, skip this step.
     
     
     
8. Click [create] in the Grant Payment Schedule window to create the voucher.
   
   
9. Click [pay] in the Grant Payment Schedule window to create the check.
   
   
   
10. Enter a Transfer Date, then click Transfer to transfer the money from the source fund to the destination fund.
    • Before transferring, click [change] to change the Transfer Account if needed.