A subrecipient is a legal entity that receives a subaward from a primary recipient. This entity is responsible for managing and using the funds provided according to the terms set by the primary recipient. Subrecipients can include various organizations, such as non-profits, educational institutions, and even international agencies, depending on the discretion of the federal awarding agency.
The term "subrecipient" is commonly used in the context of grant management and federal funding. It is relevant in areas such as:
Understanding the role of a subrecipient is crucial for organizations that receive federal funds, as it involves specific responsibilities and compliance requirements. Users can manage related forms and agreements using resources like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A university receives a federal grant to conduct research and then awards a portion of that grant to a local non-profit organization to assist with outreach efforts. The non-profit is the subrecipient responsible for using the funds appropriately.
Example 2: A state agency receives federal funds to improve public transportation and subawards part of those funds to a transportation company for project implementation. (hypothetical example)
Key regulations governing subrecipients include:
| Term | Definition | Difference |
|---|---|---|
| Recipient | The primary entity that receives a grant directly from a funding agency. | The recipient is the main party, while the subrecipient is a secondary entity. |
| Contractor | An entity that provides goods or services under a contract. | Contractors are typically paid for services rendered, while subrecipients manage awarded funds. |
If you are a subrecipient or are considering becoming one, ensure you understand your responsibilities regarding fund management and compliance. It is advisable to:
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A subrecipient manages and uses funds for specific purposes, while a contractor provides services or goods under a contract.