What is a recoverable grant and how does it work?
The following definition of a recoverable grant is from the The PRI Directory: Charitable Loans and Other Program-Related Investments by Foundations, published by the Foundation Center in 2003:
"Funds provided by a philanthropist to fulfill a role similar to equity. A recoverable grant may include an agreement to treat the investment as a grant if the enterprise is not successful, but to repay the investor if the enterprise meets with success."
The Grantsmanship Center has some information on recoverable grants in its "Answers to Some Frequently Asked Questions About PRIs" and "What Do PRIs Fund?"
Because program-related investments perform a similar function, you may want to look at our FAQ, "What is a program-related investment (PRI)?" You can also contact the Council on Foundations for more information.
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