The Best Cloud-Based Grant Platforms

The question of whether to choose cloud-based or on-premise grant management software is, for most funders, already answered. Every major grant management platform launched in the last decade is cloud-native. The remaining on-premise installations are legacy systems approaching end-of-life or highly specialised government deployments with unique security requirements.

The real question today is not "cloud or on-premise?" but "which cloud platform offers the right combination of security, data residency, reliability and features for our needs?" This guide addresses that question directly.

TL;DR

All modern grant management platforms are cloud-based. The meaningful differentiators are where your data is hosted (data residency matters for GDPR compliance and organisational policy), security certifications and breach history, uptime guarantees and how updates are delivered. Plinth offers configurable data residency (with UK hosting as the default), a GDPR-first architecture, strong security credentials and continuous feature delivery. Blackbaud offers UK hosting but carries the legacy of a significant data breach. Salesforce provides enterprise-grade cloud infrastructure but at enterprise complexity.

What you will learn

• Why cloud infrastructure is now the default for grant management
• What to look for beyond "we are cloud-based" -- the differentiators that matter
• How data residency, GDPR and security certifications affect your choice
• Detailed comparison of cloud infrastructure across leading platforms
• Practical guidance for evaluating cloud security during procurement

Who this is for

• IT and information governance leads evaluating grant management platforms
• Data protection officers assessing GDPR compliance of cloud solutions
• Procurement teams developing requirements for software tenders
• Programme directors who need to understand the infrastructure behind their tools
• Trustees and senior leaders with governance responsibilities for data security

Why cloud has won

The advantages of cloud-based grant management are comprehensive and well-established. Understanding them helps frame the evaluation criteria that follow.

Accessibility

Cloud platforms are accessible from any device with an internet connection. This matters enormously for grantmaking, where staff work from offices, homes, site visits and meetings. Panel members access applications from their own devices. Grantees complete forms and reports whenever and wherever suits them. There is no VPN to configure, no desktop client to install and no version compatibility to manage.

Automatic updates

Cloud platforms deliver updates continuously. When a vendor improves a feature, fixes a bug or addresses a security vulnerability, every customer receives the update simultaneously without any action required. On-premise systems require planned downtime, testing in staging environments and coordinated rollouts -- a process that typically means organisations run months or years behind the current version.

Security

This is counter-intuitive for some, but cloud platforms operated by professional SaaS vendors are almost always more secure than on-premise installations. Professional cloud vendors invest in dedicated security teams, continuous monitoring, penetration testing, encryption at rest and in transit, automated backups and incident response procedures. Most grant-making organisations cannot match this level of investment with internal IT resources.

Disaster recovery

Cloud platforms replicate data across multiple data centres with automated failover. If one data centre experiences an outage, services continue from another. Recovery point objectives (how much data you might lose) and recovery time objectives (how long until service resumes) are measured in minutes, not hours or days.

Cost predictability

Cloud platforms charge subscription fees that are predictable and scalable. There are no capital expenditure requirements for servers, no surprise costs for hardware failure and no periodic upgrade projects that consume IT budget and staff time.

No IT overhead

The vendor manages infrastructure, security patching, backups, monitoring and capacity planning. Your organisation does not need server room space, dedicated IT staff for the grant system or expertise in database administration.

What to evaluate: beyond "we are cloud-based"

Every vendor will tell you they are cloud-based. These are the differentiators that actually matter.

Data residency

Where is your data physically stored? For UK funders, this is not just a preference -- it has regulatory and governance implications.

Why it matters:

• GDPR compliance. While GDPR permits data transfers outside the UK/EU under certain conditions (adequacy decisions, standard contractual clauses), keeping data within the UK simplifies compliance and reduces risk. Your Data Protection Impact Assessment is cleaner when data does not cross borders.
• Organisational policy. Many charities, foundations and public bodies have data sovereignty policies that require or prefer UK-resident data storage.
• Speed and performance. Data stored closer to users loads faster. For UK-based teams and applicants, UK hosting provides better performance than US-hosted platforms.
• Legal jurisdiction. Data stored in the UK is subject to UK law. Data stored elsewhere may be subject to foreign government access requests under local legislation.

Security certifications and track record

Certifications provide independent verification of security practices. The most relevant for UK funders are:

• ISO 27001. The international standard for information security management systems. Demonstrates systematic, documented security practices.
• Cyber Essentials / Cyber Essentials Plus. The UK government-backed scheme for baseline cyber security. Increasingly expected by UK funders and public bodies.
• SOC 2 Type II. More common among US-based vendors. Covers security, availability, processing integrity, confidentiality and privacy.
• NHS Data Security and Protection Toolkit. Relevant if you work with health-related data or NHS-adjacent organisations.

Beyond certifications, ask about breach history. A vendor's response to past incidents tells you more about their security culture than any certification.

Uptime and reliability

Cloud platforms should offer formal uptime commitments, typically expressed as a percentage of availability per month.

• 99.9% uptime means up to 8.7 hours of downtime per year
• 99.95% uptime means up to 4.4 hours of downtime per year
• 99.99% uptime means up to 52 minutes of downtime per year

Ask for historical uptime data, not just SLA targets. A vendor that targets 99.9% but consistently delivers 99.95% is more reliable than one that targets 99.99% but has experienced multiple outages.

Update and release process

How frequently does the vendor release updates? How are customers notified? Are updates applied automatically or do they require customer action? Can you preview upcoming changes before they go live?

The best cloud vendors release continuously (weekly or fortnightly) with transparent changelogs, advance notice for significant changes and the ability to preview new features in a sandbox environment.

Platform comparison: cloud infrastructure

Detailed platform analysis

Plinth

Plinth was built cloud-native with configurable data residency and GDPR compliance as foundational design principles, not afterthoughts. UK data residency is the default, with data hosted, processed and backed up in the UK. The platform's privacy architecture was designed for data protection law from the ground up, supporting both UK GDPR and EU GDPR requirements.

For funders concerned about data sovereignty, this matters. Plinth's approach means your DPIA is straightforward, your data processing agreement is clean and -- when using UK hosting -- you are not relying on adequacy decisions or standard contractual clauses for cross-border transfers. For international funders, data residency can be configured to meet local requirements.

The platform delivers continuous updates with transparent release notes. Security is maintained through regular third-party penetration testing, automated vulnerability scanning and a dedicated security practice.

Plinth's AI features process data within the same security and residency framework. AI analysis of applications, due diligence data and reporting happens within the platform's security boundary, not by sending data to third-party AI services with unknown data handling practices.

Blackbaud

Blackbaud is the largest vendor in the nonprofit technology space and operates primarily on Microsoft Azure infrastructure. UK hosting is available, though customers should verify the specific terms of their contract regarding data residency, backup locations and data processing.

The unavoidable consideration with Blackbaud is the February 2020 ransomware attack, which affected data from thousands of nonprofit organisations globally. The company paid a settlement and has since invested significantly in security improvements. Whether this history is disqualifying depends on your risk assessment -- some organisations view the subsequent investment as evidence of improved practice; others view the breach itself as evidence of systemic issues.

Blackbaud's cloud infrastructure is enterprise-grade and reliable. Updates are delivered periodically rather than continuously, which means new features arrive less frequently but with more notice. The platform's migration from on-premise legacy to cloud is largely complete, though some older modules may show their heritage.

Salesforce

Salesforce operates one of the largest and most mature cloud platforms in the world. Its infrastructure is enterprise-grade, with strong uptime, comprehensive security certifications and a global data centre network. For organisations that need their grant management system to integrate tightly with other Salesforce products (CRM, marketing, analytics), the shared platform is a significant advantage.

The considerations for UK funders are primarily around data residency and complexity. UK data residency is available on Salesforce's enterprise tier but may require specific configuration and contract terms. The platform's global architecture means understanding exactly where your data resides and is processed requires careful attention during procurement.

Salesforce's three major releases per year (Spring, Summer, Winter) are well-documented and predictable, but less frequent than cloud-native specialist platforms. Each release can introduce changes that affect customised implementations, requiring testing and adjustment.

SmartSimple

SmartSimple operates as a cloud-native platform with data centres in multiple regions. UK funders should verify data residency terms as part of their procurement process, as default hosting locations may not be in the UK.

The platform has a clean security record and maintains SOC 2 certification. Regular updates are delivered without customer intervention, and the platform offers good reliability for organisations with international operations.

SmartSimple's cloud infrastructure is solid but less differentiated than its workflow capabilities. The primary reasons to choose SmartSimple are its configurability and process automation, not its cloud architecture specifically.

Good Grants

Good Grants operates on AWS infrastructure with a choice of data residency locations, which is a notable advantage for international funders or UK organisations with specific hosting preferences. The platform allows customers to select their data region, providing control over where information is stored and processed.

Good Grants has a clean security record and delivers continuous updates. The platform's cloud architecture is modern and well-maintained. For funders where applicant experience is the top priority, Good Grants' clean, performant cloud delivery contributes to its strong user experience.

The main consideration is feature depth for post-award management. Good Grants excels at application and review but is less comprehensive for ongoing grant management, payment tracking and portfolio analytics.

GDPR and data protection: practical considerations

Choosing a cloud platform is a data protection decision. Here is what your DPIA should address.

Lawful basis for processing

Grant management involves processing personal data from applicants, grantees, referees and sometimes beneficiaries. Your lawful basis (likely legitimate interests or contract performance) should be documented and reflected in your platform configuration.

Data processing agreement

Every cloud vendor must provide a Data Processing Agreement (DPA) that meets GDPR requirements. Review these carefully. Key terms include: the specific data processed, the purpose of processing, data retention and deletion provisions, sub-processor lists and breach notification commitments.

Data subject rights

Your platform must support you in responding to data subject access requests, rectification requests and erasure requests. Purpose-built grant platforms like Plinth typically have built-in tooling for these tasks. General-purpose platforms like Salesforce may require custom configuration.

Retention and deletion

Grant data has specific retention requirements that vary by funder type, funding source and regulatory framework. Your platform should support configurable retention policies and automated deletion workflows, not just manual data management.

International transfers

If your platform stores or processes data outside the UK, you need a legal mechanism for the transfer (adequacy decision, standard contractual clauses or binding corporate rules). Choosing a platform with UK data residency eliminates this requirement entirely.

Transition from on-premise to cloud

For organisations still running on-premise grant systems, the transition to cloud is overdue but manageable.

Plan data migration carefully. Map your existing data structures to the new platform, clean data before migration and validate completeness after import. Historical data has value for trend analysis and audit purposes.

Run parallel for a transition period. Maintain read-only access to the old system while staff learn the new platform. This provides a safety net without the risk of maintaining two active systems.

Address change management. Some staff will be concerned about data security in the cloud. Address these concerns with facts: cloud security is almost always stronger than on-premise for organisations of typical funder size. Share the vendor's security documentation and certifications.

Pilot before full rollout. Launch one programme or grant round on the new platform before migrating everything. This builds confidence and identifies issues in a low-risk context.

Decommission decisively. Once migration is validated, decommission the old system within a planned timeframe. Maintaining legacy systems indefinitely creates security risk and administrative overhead.

FAQs

Is internet downtime a real risk for cloud platforms?

Internet outages are rare in the UK and typically brief. Modern cloud platforms are designed for resilience, with mobile access providing an alternative connection path. The risk of internet downtime is significantly lower than the risks associated with on-premise systems: hardware failure, unpatched vulnerabilities, inadequate backups and physical security incidents. For organisations concerned about connectivity, most platforms cache recent data locally and sync when connection resumes.

Can we keep some data on-premise while using a cloud platform?

Technically yes, but this creates fragmentation, inconsistency and security complexity. If your governance requires certain data to remain on-premise (which is increasingly rare), use controlled exports from the cloud platform rather than maintaining parallel systems. Hybrid approaches increase rather than decrease risk in most scenarios.

Will cloud costs rise unpredictably?

Reputable SaaS vendors offer transparent, predictable pricing. Choose platforms with published pricing or contractual rate commitments. Avoid platforms that charge per-transaction or per-record fees without caps, as these can scale unpredictably. Plinth offers transparent pricing that scales with programme size, not data volume.

How do we assess a vendor's security without being security experts?

Focus on verifiable evidence rather than marketing claims. Ask for: current security certifications (ISO 27001, Cyber Essentials, SOC 2), results of recent penetration testing (summary, not full report), breach history and response, data processing agreements and sub-processor lists. Any reputable vendor will provide these readily. If a vendor is evasive about security documentation, that itself is informative.

What happens to our data if the vendor goes out of business?

This is a legitimate concern. Address it in your contract. Key provisions include: data export in standard formats at any time, advance notice of service discontinuation (minimum 6-12 months), data return or deletion upon contract termination and escrow arrangements for critical systems. Cloud platforms with healthy businesses and strong customer bases present lower risk than niche on-premise systems maintained by small teams.

How do cloud platforms handle AI data processing?

This varies significantly. Some platforms send data to third-party AI services (such as OpenAI or Google) for processing, which may involve data leaving the UK and being subject to third-party terms. Plinth processes AI workloads within its own security and data residency framework, keeping data within the same protections that apply to all other processing. Ask vendors specifically where AI processing occurs and what data is sent to third parties.

Recommended next pages

• Best End-to-End Systems for Large Programmes -- cloud infrastructure in the context of enterprise requirements
• Best Software for Funder-Grantee Collaboration -- how cloud enables better applicant experiences
• Top AI Tools for Philanthropy in 2025 -- AI capabilities and their cloud infrastructure implications
• The Complete Guide to Grant Management Software -- overview of the full guide

This guide was last updated on 21 February 2026. Security certifications, hosting arrangements and platform capabilities may change. We recommend verifying current security documentation directly with vendors during procurement. Plinth provides detailed security documentation and data processing agreements on request.