Nonprofit Grant Agreement

GRANT AGREEMENT

This Grant Agreement (this "Agreement") is entered into as of [DATE] (the "Effective Date") by and between:

GRANTOR:
[GRANTOR NAME]
[ADDRESS]
[CITY], [STATE] [ZIP CODE]
(the "Grantor" or "Funder")

and

GRANTEE:
[ORGANIZATION NAME]
[ADDRESS]
[CITY], [STATE] [ZIP CODE]
EIN: [XX-XXXXXXX]
(the "Grantee" or "Organization")

RECITALS

WHEREAS, the Grantor desires to make a grant to support [GENERAL PURPOSE];

WHEREAS, the Grantee is a nonprofit organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code;

WHEREAS, the Grantee has applied for funding and has demonstrated capacity to carry out the proposed project;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

ARTICLE 1 - GRANT AWARD

1.1 Grant Amount

The Grantor agrees to provide a grant in the amount of:

$[AMOUNT] (the "Grant")

1.2 Grant Period

The Grant Period shall be from [START DATE] to [END DATE] (the "Grant Period").

1.3 Grant Type

☐ General Operating Support: The Grant may be used for the Grantee's general operations.

☐ Project/Program Grant: The Grant is restricted to the project described in Article 2.

☐ Capital Grant: The Grant is restricted to capital purposes as described in Article 2.

☐ Capacity Building Grant: The Grant is restricted to capacity building activities.

☐ Matching Grant: The Grant is contingent upon the Grantee securing matching funds as described in Section 1.5.

1.4 Funding Source

☐ The Grant is funded entirely from the Grantor's private funds.

☐ The Grant includes federal pass-through funds subject to [CFDA NUMBER / PROGRAM NAME] requirements.

☐ The Grant includes state pass-through funds subject to [STATE PROGRAM] requirements.

1.5 Matching Requirements

☐ No matching requirement.

☐ The Grantee must secure matching funds of $[AMOUNT] or [RATIO] (e.g., 1:1).

• Matching deadline: [DATE]
• Eligible sources: [DESCRIBE]

ARTICLE 2 - PURPOSE AND USE OF FUNDS

2.1 Project Description

The Grant shall be used exclusively for the following purpose:

Project/Program Name: [NAME]

Description:
[DETAILED DESCRIPTION OF PROJECT, GOALS, AND ACTIVITIES]

2.2 Approved Budget

The Grant shall be expended in accordance with the approved budget attached as Exhibit A.

2.3 Budget Modifications

☐ Budget modifications of up to [PERCENTAGE]% between line items are permitted without prior approval.

☐ All budget modifications require prior written approval from the Grantor.

☐ Budget modifications exceeding $[AMOUNT] or [PERCENTAGE]% require prior written approval.

2.4 Prohibited Uses

Grant funds may NOT be used for:

(a) Activities outside the approved project scope;
(b) Political campaign activities or lobbying (unless specifically permitted);
(c) Re-granting to other organizations (unless specifically authorized);
(d) Fundraising activities;
(e) Entertainment or alcoholic beverages;
(f) Fines, penalties, or legal settlements;
(g) [ADDITIONAL PROHIBITED USES]

ARTICLE 3 - PAYMENT TERMS

3.1 Payment Schedule

☐ Single Payment: The full Grant amount will be disbursed within [NUMBER] days of execution of this Agreement.

☐ Installment Payments:

☐ Reimbursement Basis: Funds will be disbursed upon submission of expense reports and supporting documentation.

3.2 Payment Method

Payments will be made by:
☐ Check
☐ Electronic funds transfer to: [BANK ACCOUNT DETAILS]

3.3 Withholding

The Grantor may withhold payment if:

• Reports are not submitted timely;
• The Grantee is not in compliance with this Agreement;
• The project is not making satisfactory progress.

ARTICLE 4 - REPORTING REQUIREMENTS

4.1 Progress Reports

The Grantee shall submit progress reports as follows:

4.2 Report Contents

Progress reports shall include:

(a) Summary of activities and accomplishments;
(b) Progress toward stated goals and objectives;
(c) Challenges encountered and solutions implemented;
(d) Financial report showing expenditures by budget category;
(e) Comparison of actual vs. budgeted expenditures;
(f) Supporting documentation as required.

4.3 Final Report

The final report shall include:

(a) Comprehensive summary of project outcomes;
(b) Data demonstrating impact and results;
(c) Final financial report with all expenditures;
(d) Lessons learned and recommendations;
(e) Plans for sustainability (if applicable).

4.4 Financial Reports

Financial reports shall include:

(a) Detailed accounting of Grant expenditures;
(b) Copies of receipts or invoices (if required);
(c) Bank statements (if required);
(d) Reconciliation to approved budget.

4.5 Site Visits

The Grantor may conduct site visits during the Grant Period with reasonable advance notice.

ARTICLE 5 - RECORDS AND AUDIT

5.1 Record Keeping

The Grantee shall maintain complete and accurate records of all Grant-related activities and expenditures, including:

(a) Financial records (invoices, receipts, bank statements);
(b) Program records (attendance, outcomes data);
(c) Personnel records (timesheets, if personnel costs included);
(d) Procurement records (bids, contracts).

5.2 Retention Period

Records shall be retained for a minimum of [NUMBER] years following the end of the Grant Period (or longer if required by law or other funders).

5.3 Audit Rights

The Grantor, or its designee, may audit the Grantee's records related to this Grant at any time during the Grant Period and for [NUMBER] years thereafter.

5.4 Independent Audit

☐ The Grantee shall provide a copy of its annual audited financial statements.

☐ The Grantee shall conduct a project-specific audit at the conclusion of the Grant Period.

☐ No audit requirement.

ARTICLE 6 - COMPLIANCE

6.1 Legal Compliance

The Grantee shall comply with all applicable federal, state, and local laws and regulations.

6.2 Tax-Exempt Status

The Grantee shall maintain its tax-exempt status under Section 501(c)(3) throughout the Grant Period. The Grantee shall notify the Grantor immediately if its tax-exempt status is revoked, suspended, or threatened.

6.3 Non-Discrimination

The Grantee shall not discriminate on the basis of race, color, religion, sex, national origin, age, disability, sexual orientation, gender identity, or any other protected characteristic.

6.4 Lobbying Restrictions

☐ No Grant funds may be used for lobbying activities.

☐ Grant funds may be used for lobbying activities only to the extent permitted under Section 501(c)(3) and applicable law.

6.5 Insurance

The Grantee shall maintain:

• General liability insurance of at least $[AMOUNT]
• Workers' compensation insurance as required by law
• [OTHER REQUIRED INSURANCE]

ARTICLE 7 - INTELLECTUAL PROPERTY

7.1 Ownership

☐ All intellectual property created with Grant funds shall be owned by the Grantee.

☐ All intellectual property created with Grant funds shall be jointly owned by the Grantor and Grantee.

☐ The Grantor shall have a perpetual, royalty-free license to use any intellectual property created with Grant funds.

7.2 Publications

The Grantee may publish results of Grant-funded activities, subject to acknowledgment of the Grantor's support.

ARTICLE 8 - PUBLICITY AND ACKNOWLEDGMENT

8.1 Acknowledgment

The Grantee shall acknowledge the Grantor's support in all publications, press releases, and promotional materials related to the Grant-funded project, using the following language:

"This [program/project] is supported by a grant from [GRANTOR NAME]."

8.2 Logo Use

☐ The Grantee may use the Grantor's logo with prior written approval.

☐ The Grantee shall use the Grantor's logo as provided in accordance with brand guidelines.

8.3 Press Releases

The Grantee shall provide the Grantor with advance notice and opportunity to review any press releases mentioning the Grantor.

8.4 Grantor Publicity

The Grantor may publicize the Grant award and may use the Grantee's name and project description in its own communications.

ARTICLE 9 - TERMINATION

9.1 Termination for Convenience

Either party may terminate this Agreement for any reason upon [NUMBER] days' written notice.

9.2 Termination for Cause

The Grantor may terminate this Agreement immediately upon written notice if:

(a) The Grantee breaches any material term of this Agreement;
(b) The Grantee fails to submit required reports;
(c) The Grantee loses its tax-exempt status;
(d) The Grantee engages in fraud or misrepresentation;
(e) The Grantee fails to make satisfactory progress toward project goals.

9.3 Effect of Termination

Upon termination:

(a) The Grantee shall immediately cease using Grant funds for new obligations;
(b) The Grantee shall return any unexpended funds within [NUMBER] days;
(c) The Grantee shall submit a final report within [NUMBER] days;
(d) The Grantor may recover funds used for unauthorized purposes.

ARTICLE 10 - RETURN OF FUNDS

10.1 Unexpended Funds

☐ Unexpended funds at the end of the Grant Period shall be returned to the Grantor.

☐ Unexpended funds may be retained by the Grantee for continued project activities with prior written approval.

☐ Unexpended funds up to [PERCENTAGE]% may be retained; amounts exceeding this threshold must be returned.

10.2 Misused Funds

The Grantee shall return any funds that were:

• Used for purposes not authorized under this Agreement;
• Not supported by adequate documentation;
• Determined to be excessive or unreasonable.

ARTICLE 11 - REPRESENTATIONS AND WARRANTIES

11.1 Grantee Representations

The Grantee represents and warrants that:

(a) It is a nonprofit organization exempt under Section 501(c)(3);
(b) It has the legal authority to enter into this Agreement;
(c) All information provided in the grant application is true and accurate;
(d) It has the capacity to carry out the proposed project;
(e) It is not debarred or suspended from receiving federal funds;
(f) No conflict of interest exists with respect to this Grant.

11.2 Notification of Changes

The Grantee shall promptly notify the Grantor of any material changes affecting:

• Tax-exempt status
• Legal structure
• Key personnel
• Project scope or timeline
• Financial condition

ARTICLE 12 - INDEMNIFICATION

12.1 Grantee Indemnification

The Grantee shall indemnify, defend, and hold harmless the Grantor and its officers, directors, employees, and agents from any claims, damages, losses, or expenses arising from:

(a) The Grantee's performance or failure to perform under this Agreement;
(b) Any negligent or wrongful act or omission by the Grantee;
(c) Any violation of law by the Grantee.

12.2 Limitation

This indemnification shall not apply to claims arising from the Grantor's sole negligence or willful misconduct.

ARTICLE 13 - GENERAL PROVISIONS

13.1 Independent Contractor

The Grantee is an independent contractor and not an employee, agent, or partner of the Grantor.

13.2 Assignment

This Agreement may not be assigned by the Grantee without the prior written consent of the Grantor.

13.3 Amendment

This Agreement may be amended only by written agreement signed by both parties.

13.4 Entire Agreement

This Agreement, including all exhibits, constitutes the entire agreement between the parties.

13.5 Governing Law

This Agreement shall be governed by the laws of the State of [STATE].

13.6 Notices

All notices shall be in writing and sent to the addresses set forth above.

13.7 Severability

If any provision is found invalid, the remaining provisions shall continue in full force.

13.8 Counterparts

This Agreement may be executed in counterparts.

SIGNATURES

GRANTOR:

[GRANTOR NAME]

By: _________________________________________

Printed Name: [NAME]

Title: [TITLE]

Date: ___________________________________

GRANTEE:

[ORGANIZATION NAME]

By: _________________________________________

Printed Name: [NAME]

Title: [TITLE]

Date: ___________________________________

EXHIBITS

Exhibit A - Approved Budget
Exhibit B - Project Work Plan and Timeline
Exhibit C - Reporting Templates
Exhibit D - [Additional Exhibits as needed]

[END OF DOCUMENT]