Grant Agreement Meaning

A grant is a direct financial contribution as a donation from the EU budget to the financing of: – a measure designed to contribute to the achievement of a goal that is part of a European Union policy; – either the functioning of an organization pursuing a european general interest purpose or pursuing an objective that is part of a European Union policy. In other words, it is a non-commercial payment from the European Commission as an adjudicating authority to a particular beneficiary, to implement a measure designed to contribute to the achievement of an objective that is part of a European Union policy. An organisation with a general European interest objective is: a European body that deals with education, training, information, innovation or research and studies European policies, all activities that contribute to the promotion of EU citizenship or human rights or a European standardisation organisation; or a European network representing non-profit organisations operating in Member States or candidate countries and promoting principles and policies in line with treaty objectives. The organization that signs a grant contract is designated as the recipient of the grant and should not be confused with the final beneficiary of the transaction, nor with the target group. A subsidy contract can be distinguished in several respects from a purchase market: a subsidy is granted for an action proposed to the services of the European Commission by a potential beneficiary (a “plaintiff”) and which falls within the normal framework of the beneficiary`s activities. This runs counter to a contracting in which the contracting authority sets the terms of the mandate of a project it wishes to carry out. A contract should be considered as a procurement market and not as a subsidy contract if its purpose is primarily or, on the whole, the management tasks of the European Commission. A fellow is responsible, alone or in conjunction with the partners, for the completion of the transaction and retains ownership of its results. On the other hand, in the context of a contracting contract, it is the European Commission, which owns the results of the project and closely monitors its implementation. As a general rule, a beneficiary or contractor contributes to the financing of the action, unless full Community funding is essential to the implementation of the action. However, in the case of a contract, the contractor generally does not make a financial contribution.

A grant can only be granted to a company whose immediate purpose is not commercial. Under no circumstances can the subsidy generate profits, with the exception of measures to strengthen a recipient`s financial capacity or to generate income through external actions. As a general rule, beneficiaries are not profit-oriented. The fact that an entity is not profit-oriented does not necessarily mean that a contract to be entered into with it is a subsidy contract; Non-profit organizations can also call for tenders. The complaint itself must be non-commercial. The grant is expressed by a percentage and a maximum amount of eligible costs of the measure actually borne by the recipient. When lump sums (with a unit value of EUR 25,000 or less per category) of eligible costs or lump sum financing are provided, their use and maximum amounts must be approved by a Commission decision, for example through a grant or type of grant. B