Grants that are achievable must be flexible and are primarily a charitable enterprise. Refundable grants are only refundable in certain circumstances and, in most cases, recipients are not required to repay the grant. What happens if a recipient does not repay the refundable amount? Achievable grants provide money for causes that are important to you when they are most needed, and return money to your philanthropic account when aid or income arrives at all times. Refundable grants allow you to enhance the impact of your financial assistance. Achievable subsidies are appropriate to support the types of program activities that lead to asset building – situations where capital is needed to stimulate economic development, but is not necessary for current subsidies. From the donor`s point of view, they can be an excellent tool to increase the impact of the donor`s philanthropic dollars. Grants that are achievable can be used to allay the fears of not-for-profit boards that are reluctant to cover any type of debt. Some boards may have a policy that they are not prepared to accept debts, regardless of the benefit. We have had several situations in which we have been creative with our approach. We would say, “Okay, we really believe in this new social enterprise that you are doing, or we think that this new program that you are playing together could be profitable. So, how about, we give you the dollars in the form of a grant, with the understanding that if you succeed and you win, you will reimburse us 30 cents of that first dollar and every dollar until we return our subsidies, and you will keep 70 per cent to continue to grow. During the COVID crisis, we worked with several clients who used viable grants to fund the response and disaster activities of non-profit organizations.
In one case, a group of local health organizations (the fellows) met to purchase personal protective equipment (PPE) for their workers; The foundation provided cash to buy the stocks by volume in a matter of hours. The foundation officer kept the equipment until the local groups were able to find the money for them and then they reimbursed the foundation. In this case, the foundation recovered most of its money, charities got what they needed at a price below the market, and the local intermediary set up a stronger network. At a time when philanthropy is changing rapidly and the needs of philanthropists are changing just as rapidly, many foundations should consider providing recyclable aid. It acts in many ways as a loan, but it is treated fiscally as a subsidy. This is particularly useful for private foundations, since the grant is charged on the minimum payment of 5% of the foundation for the year. It also allows foundations to make much riskier “investments” than they otherwise could. What is the minimum grant amount for an eligible grant? In the past, we have successfully experimented with repayable grants; several foundations have provided grants to be invested in certain companies. If Upaya can successfully retire after an agreed mandate (for example.
Within five years), we will return the initial grant to the foundation and, in some cases, we will offer a small return at the top.