Understanding Grant Codes, Numbers, and Compliance
A Plain-Language Guide for Nonprofit Leaders
Grants often come with numbers, letters, and codes that can feel confusing or intimidating. These identifiers aren’t just paperwork—they define how funding can be used, tracked, and reported. Understanding them helps nonprofits stay compliant, avoid costly mistakes, and build long-term funder trust.
At ACL Consulting, we help nonprofits translate these requirements into clear, manageable systems.
Why Grant Codes Matter
Every grant comes with rules. Grant identifiers help answer key questions such as:
- What can this money be used for?
- How long can we spend it?
- What reporting is required?
- What happens if we use it incorrectly?
Using the right codes ensures:
- Funds are spent properly
- Reports match funder expectations
- Audits go smoothly
- Future funding remains possible
The Most Common Grant Codes Explained
Assistance Listing Number (ALN)
(Formerly called a CFDA number)
What it is:
A federal program identifier that defines exactly what a grant is for.
Why it matters:
The ALN determines:
- Allowable and unallowable expenses
- Reporting requirements
- Audit standards
Plain-language example:
“This number tells us what the grant money is allowed to pay for.”
Federal Award Identification Number (FAIN)
What it is:
A unique identifier for your specific federal grant award.
Why it matters:
- Used on reports, invoices, and communications
- Helps track funding across systems
Plain-language example:
“This is the serial number for your specific grant.”
Notice of Award (NoA) Number
What it is:
The official reference number found on your grant award letter.
Why it matters:
- Confirms your funding terms
- Sets start and end dates
- Identifies special conditions
2 CFR 200 (Uniform Guidance)
What it is:
The federal rulebook for how grant funds must be managed.
Why it matters:
It governs:
- Allowable costs
- Procurement rules
- Financial documentation
- Audits
Plain-language example:
“These are the rules that explain what is allowed and what is not.”
Organizational Identification Numbers
Unique Entity Identifier (UEI)
What it is:
A 12-character ID required to receive federal funds.
Why it matters:
- Required in SAM.gov
- Needed for federal grant payments
Employer Identification Number (EIN)
What it is:
Your nonprofit’s IRS identification number.
Why it matters:
- Required for grant agreements
- Used for financial reporting
Internal Tracking Codes (Often Overlooked—but Critical)
Fund Codes
What they do:
Track restricted grant funds separately from other money.
Why they matter:
- Prevent accidental misuse
- Support clean financial reporting
- Essential for audits
Program Codes
What they do:
Assign expenses to specific programs or grants.
Why they matter:
- Ensure costs align with grant purpose
- Support outcome reporting
Classification Codes Foundations Often Use
NTEE Code
What it is:
An IRS classification that describes your nonprofit’s mission.
Why it matters:
Foundations use it to determine eligibility
NAICS Code
What it is:
A government classification of organizational activity.
Why it matters:
Used in some federal and corporate grants
What Happens If These Codes Are Misused?
Misunderstanding or ignoring grant identifiers can lead to:
- Repayment of funds
- Failed audits
- Lost future funding
- Damaged funder relationships
How ACL Consulting Helps
ACL Consulting supports nonprofits by:
- Translating grant requirements into plain language
- Setting up compliant tracking systems
- Aligning budgets with allowable costs
- Supporting post-award reporting and audits
- Strengthening funder confidence
You don’t need to be a compliance expert—you just need the right guidance.
Need Help Navigating Grant Requirements?
Grant funding should support your mission, not overwhelm your team.
Contact ACL Consulting to ensure your grants are:
- Properly structured
- Fully compliant
- Positioned for long-term sustainability