Why Free Grant Management Software Isn't Worth It

In today's philanthropic world, the management of grants is the decisive factor in making a difference for many needy foundations. According to a study published recently by National Philanthropic Trust, nonprofit giving from foundations amounts to $105.21 billion, which is the kind of money one would not entrust to free software for its management. Even though free grant management software may appear costless, it almost always comes with hidden downsides that can seriously impede your organization's operations. This blog explores why you should not take the risk with free grant management software and why paying the price for a system might be the smarter choice.

What Is Free Grant Management Software?

Most free grant management software offers rudimentary functionality that enables tracking and management of grants by organizations. They usually come with application processing, generating reports, financial tracking, among others. However, they usually have limitations related to customization, support, and scalability. Yes, the allure of "free" is understandable, but does it really meet the complex needs that your foundation has?

Hidden Costs of Free Grant Management Software

While free software doesn't require an upfront financial commitment, it can end up costing your foundation in the long run. Here are some of those hidden costs associated with free grant management software:

1. Limited Functionality: Many of the free tools out there lack in-depth functionality to handle a grant portfolio that has become so complex and sophisticated; this results in inefficiencies and manual workarounds.
2. Poor Customer Support: Much free software has little or no customer support, and the problem solving will be left to your team alone, which may take a lot of time and get frustrating.
3. Security Risks: If this is a free tool, the data will not be as safe as when one has a paid solution, and sensitive grant information may be exposed.
4. Scalability Issues: Free software might not be able to match up with your increasing needs when your Foundation is growing—in other words, you may be forced to change systems down the line, while this is a rather costly and disruptive process itself.

Pros and Cons of Free Grant Management Software

When considering free grant management software, it’s important to weigh the pros and cons carefully. While the appeal of a cost-free solution is obvious, the limitations and risks can often outweigh the benefits.

• Limited Features: Free software does not contain the advanced tools that could be of help to one in managing larger grant portfolios. For example, a foundation that manages several funding streams will yearn for the possibility of robust reporting capabilities.
• Lack of Customization: Free tools, by and large, cannot be customized to suit your foundation's needs. Take, for instance, that you might fund a number of different projects both locally and internationally, which would need specialized tracking that would not be possible using free software.
• Lack of Support: Most free tools come with little or no customer support at all, and this truly adds to the list of extensive downtimes. Think about it: you are a foundation with an issue during a key grant cycle that requires immediate technical support.
• Security Concerns: The free software mostly lacks the power of security features that would ensure protection to the sensitive data. For example, if it does not provide strong encryption, a breach could occur in which confidential information about grantees may be compromised.

Reasons Why Paid Software Offers Better Service

Paid grant management software solutions, like Fluxx, understand the everyday challenges of foundations and is built to be an all-in-one suite with tools that allow for easier grant management, rich support, enhanced security features, and the customization you require for your foundation. It makes this investment in paid software worthwhile because it will scale your organization by advanced features growing with you toward long-term success.

Why You Need Fluxx for Your Foundation

Fluxx provides advanced grant management solutions tailored to meet the complex needs of foundations. Through an easy-to-use interface, comprehensive functionality, and first-class customer service, Fluxx helps with the entire grantmaking process from start to finish. Unlike most free software, Fluxx offers modern foundation scalability, security, and customizability needed at high levels to achieve its mission.

Invest in Your Foundation's Future

Though 'free grant management software' doesn't sound like such a bad idea, consider the downsides that could ultimately impact your foundation's effectiveness and safety. The invested solution Fluxx offers ensures the full supply and support of grants management at your foundation. And with this, you can pursue what matters most: changing the world for good.

Get hands-on experience with Fluxx and see how to transform your foundation's grant management process. See for yourself now by scheduling an intro call today.