My 15 years of experience in the development sector has revealed that a standard practice in Non-Governmental Organisations (NGOs) is to carefully read grant awards to ensure that funds are allocated and spent in accordance with the terms outlined in the signed contract and the associated contractual obligation. However, in the course of my professional responsibilities, I have observed practices in a number of NGOs that are deeply concerning: A greater number of them do not read and study grant agreement before commencing implementation. 

The practice is that as soon as a grant is won, money is awarded and funds are transferred. Organisations then move swiftly into action, raising memos and securing approvals for spending to begin. When approvals are obtained and implementation begins, the contract is rarely revisited to ensure implementations are done in line with contractual obligations as contained in the signed contract. In some cases, when the contract is read, it is only by the executive director and the finance officer. Often, the project officer and the implementation team do not have access to the contract award document, let alone read it.  

Finding from my ongoing research titled “An Analysis of Participatory Communication Practices in Grant Making and Management Among Non-Governmental Organisations (NGOs) in Nigeria,” which is part of my PhD research, shows that the majority (96.33%) of respondents who were members of project implementation team said they have not seen and read a grant contract award agreement. On the other hand, only a small proportion (4.0%) of the respondents said they have seen and read a grant contract award agreement. This reveals that the majority of NGOs studied do not encourage reading grant contract award to understand contractual obligations for project implementation.  

As one participant shared during an interview, “I have implemented a good number of projects, I have not been handed a project signed contract, the ED just explained what to be done and we are asked to raise a memo for approval.” 

This is not only unprofessional but also a dangerous practice. In my professional experience, I have seen organisations run into serious trouble simply because they did not read the contractual obligations that would enable them to implement projects based on the signed contract. The implication of this kind of behaviour has resulted in funds being refunded, projects canceled and partnerships lost. 

My interactions with some NGO officials revealed that grant agreements are treated as classified documents that are accessible only to the Executive Director and Finance Officer. At the same time, the Project Officer and other implementation team that are saddled with the responsibilities of delivering results that must align with the contractual agreement are in the dark about the actual terms, approved budget and deliverables.  

This is a big mistake we make in project implementation that must stop. This practice is not just inefficient. It’s irresponsible. We must change this practice because, when the project officer and the entire implementation team have access to the signed contract and carefully read and understand it, the following will be achieved:  

• They will ensure spending aligns with the funder’s rules 

• M&E will properly track progress against deliverables 

• Finance will align spending with reports  

• The entire team will stay compliant, accurate and confident. 

I once worked with an organisation that received a four-year grant and spent it all in six months. This happened because the implementation team never read the grant agreement, despite my repeated warnings to do so. 

Let me make this clear: Grants are contracts and not gifts or free money. They are tied to clear obligations, timelines and expected results. Organisations that neglect reading grant agreement to fully understand contractual obligations undermine reporting, compliance, accountability and ultimately, impact. 

Recommendations  

Based on my ongoing research (not yet published), I offer the following practical recommendations: 

• The organisations management should share grant contract with the project team to read and understand it, which would enable them to implement project in line with contractual obligations. 

• NGOs should train their personnel in grant management, focusing on understanding contractual terms and implementation.  

• NGOs should make grant reading part of their internal policy.  

I made the above recommendations, believing that grant management is not just about securing funding, it’s about utilising it wisely, transparently and in full compliance with what was agreed. We have to be intentional on how best to manage grants for the sake of impact and trust that will guarantee the future of our development work, which is heavily dependent on donor funding. 

About the author

Author profile

Audu Liberty Oseni

Audu Liberty Oseni is the Director of the Centre for Development Communication (CDC) and a PhD candidate in Development Communication at Nasarawa State University, Keffi, Nigeria. With over 15 years of experience, he hasestablishedhimself as a leading voice in development communication, NGO leadership, program management,monitoringand evaluation (M&E), grant writing and building community resilience to climate change. Liberty has authored more than 10scholarly publications in both local and international peer-reviewed journals, contributing significantly to the theory and practice of development communication.His work focuses on critical areas such as climate change communication, conflict resolution, community resilience and donor engagement. Drivenby a passion for evidence-based impact,Libertyis building a distinct voice as a thought leader in development communication. He combines academic insight with field-tested experience to advance best practices in communication for development,program designand institutional strengthening across Africa and beyond.  

 

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