Grants Management Manual

Articles for Grants Management with common and not-so-common grant scenarios

Payment Schedules for Grants Over $500,000

In 2010, senior management decided that grants above certain dollar thresholds should be broken up into multiple payments rather than be paid in a single installment. While interim reporting and payment installments were a common practice for large or multi-year grants, they were not consistent. Concerns underlying this policy change included managing OSF’s cash needs by avoiding abrupt large disbursements, and minimizing the opportunity cost of selling profitable securities before grantees needed funds.

As communicated by OSF’s president, the policy states that grants of $500,000 to $1 million should be divided into at least two payments and grants over $1 million into at least four payments spread equally over the life of the grant. If there is a payment over $1M, it should be approved by the President. Exceptions can be made when supported by cash flow projections of the organization. General support grants or project support grants where significant activity happens later in the grant period would not qualify as exceptions.

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