A subgrant is a type of financial assistance awarded under a larger grant. It involves a grantee providing funds or property to an eligible subgrantee. This definition encompasses various forms of financial support, including those established through contractual agreements. However, it does not cover procurement purchases or any assistance excluded from the broader definition of a grant.
Subgrants are commonly used in the context of federal and state funding programs, particularly in areas such as education, public health, and community development. They allow organizations to distribute funds to other eligible entities for specific projects or purposes. Users can often manage related paperwork and agreements through legal templates available from services like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A state education department receives a federal grant to improve educational resources. They issue subgrants to local school districts to implement specific programs.
Example 2: A nonprofit organization receives a grant from a foundation and then provides subgrants to community groups for local health initiatives. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Subgrant Regulations |
|---|---|
| California | Subgrants must comply with state funding guidelines. |
| Texas | Specific reporting requirements are mandated for subgrantees. |
| New York | Subgrants are subject to state audit procedures. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Grant | A financial award provided to support a specific project or purpose. | A grant is typically awarded directly to an organization, whereas a subgrant is awarded to a subgrantee by a grantee. |
| Contract | A legally binding agreement between parties for goods or services. | Contracts involve procurement and do not fall under the definition of a subgrant. |
If you are involved in a project that may require a subgrant, consider the following steps:
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