Dear eegokdhs,
Welcome to TechSoup!
I use the term "Grant Management Software" to refer to software that tracks grants
after they have been received. It can also refer to software that foundations use to manage the grant-making process. Are either of those what you want? If so,
here's a recent discussion of software for nonprofits and
here's an article about software for foundations.
But it sounds like you are looking for software to track the grants you are going after, which I would call a "donor database." If you search TechSoup for this term, you'll find lots of resources, including a list of inexpensive donor databases.
Every database can run reports, but that phrase means a lot of different things. Most come with "canned" reports to cover common needs. Most also allow you to write your own reports, but not all do. Some nonprofits are able to get everything they need by using canned reports or exporting data to a spreadsheet. Others find that they need a custom report every time. You will need to specify the reports you need and decide whether you need to be able to develop custom reports. Ask the vendors you're looking at for samples of the reports you want. If you want to create custom reports, you should test the report writing process when you evaluate databases. Also, ask the vendors about their ability to write custom reports for you and what they charge.
Reporting on outcomes is a harder question. Many foundations want reports in their own unique format, which requires a custom report for each funder. Often, funders need data that the donor database doesn't track well (or at all), so organizations frequently maintain a separate outcomes tracking system. That could be as simple as a spreadsheet and mail merge report. See the discussion of grants management software for nonprofits for some ideas.
But before you spend time or money on software -- have you verified that you're eligible for grants? Many funders only support 501 (c) 3 nonprofit corporations.
Robert