Idaho Recoverable Grant Agreement
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FAQ
Recoverable grants are non-exchange transactions and should be reported as revenue when the eligibility requirements are met. If the government has received a recoverable grant, the conditions for recoverability must be disclosed in the notes to the financial statements.
The Agreement includes: this letter ? the Grant schedule (attachment A) ? the Grant terms and conditions (attachment B) ? your application ? the grant opportunity guidelines applicable on the date you submitted your application.
Unlike recoverable grants, loans must be repaid by a borrower regardless of project or grantee financial performance. They may be forgiven by the lender, but they are always considered debt for accounting purposes.
Recoverable grants are different from loans in that they are forgivable. Grantors may consider forgiving repayment under extraordinary circumstances, and in Echoing Green's case, are not repayable unless the recipient company is financially successful.
A recoverable grant is a philanthropic tool that provides nonprofit organizations with funding for specific revenue-generating programs and initiatives. If a program meets its financial and impact objectives, the nonprofit may return the grant funds to the donor advised fund for additional grantmaking.
The main difference between a grant and a loan is repayment. A loan requires you to repay the money you borrow, whereas a grant does not. Grants are, essentially, a gift.
Recoverable grant capital can serve the same purpose for a nonprofit organization. For example ? if a nonprofit is working to test a new, unproven solution to address climate change, they need access to patient risk capital to help them innovate and try new ways to address the problem.
