Repayable grants are a type of financing where an organisation or individual receives funds that they are expected to repay in the future, with little or no interest. These grants are designed to help promote economic development and advance social or environmental causes.
For us at CFC, offering repayable grants means that we can ensure that our donors’ money does the most good for the most people. It allows our funds to be regenerative so that once an organisation repays their grant money, we can use these funds, again and again, to fund more projects across the country.
It may seem counterintuitive to go against traditional donation and grant-making strategies by asking charities to repay these funds but this type of grant structure has many benefits for charities and beneficiaries.
Repayable grants can provide charities and other non-profit organisations with access to funds that they may not have been able to obtain through other means. This can be particularly important for smaller groups or those that are just starting out. Our grants are available to all types of community/non-profit organisation, whether you are a registered charity or business, or not.
Unlike traditional grants, which typically have strict guidelines for how the funds can be used, repayable grants offer organisations more flexibility in how they use the funds. This can allow organisations to invest in new projects or initiatives that they may not have been able to pursue otherwise.
Because repayable grants must be repaid, organisations are often more careful with how they spend the funds. This can encourage long-term planning and investment in projects that will have a lasting impact.
Repayable grants can help organisations diversify their funding streams, reducing dependence on donations and other sources of income. This can provide greater stability and sustainability for the organisation over the long term.
Because repayable grants are offered at lower interest rates than traditional loans, they can help organisations reduce their financial risk. This can be particularly important for groups that operate in volatile or uncertain economic conditions.
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