Upon successful acceptance of a grant proposal, a grant contract may be necessary to secure funding and outline specific procedures and guidelines for both the grantee and grantor. A grant contract provides specific details about the duties and responsibilities of both parties and details terms for payment disbursements. The contract also outlines procedures for terminating the contract if either party neglects to fulfill its responsibilities.
Instructions
1. State the parties between which the contract is being made. Identify both the grantee and grantor, including legal business names and addresses. Include the federal employer identification number or Social Security number of the grantee, and describe whether the entity is an individual, not-for-profit corporation, for-profit corporation, limited liability company or other business entity.
2. Describe the general scope of services to be performed under the grant contract. Identify geographic limitations and expenses not covered by grant funds. State other general guidelines, such as licensing requirements and rights withheld by the grantor.
3. Define the term under which the contract will be performed. Many grants offer funding that must be used within a given time frame, which should be specified in this section. Provide provisions for extension and policies for granting extension requests.
4. Create a financial section that outlines how the funds will be disbursed, how the grantee should request funds and specific provisions for which funds may be used. State the total amount of funds that have been awarded and expense reporting requirements to be met by the grantee. Describe in detail specific items that are not covered by grant funds.
5. Create a terms and conditions section that describes reporting and evaluation requirements. Grant funders typically have certain objectives and like to see proof that the grantee is using funds to appropriately meet those goals. Describe the specific procedures the grantor desires for progress evaluation.
6. Include general terms and conditions, such as nondiscrimination clauses, terms and procedures for terminating the contract, and a commitment to follow federal and state laws applicable to the grant project.
7. Provide detailed contact information for both parties, as well as instructions for submitting notices, requests or other required communications from one party to the other.
8. Add a hold harmless statement, which alleviates the grantor from any liability if the acts of the grantee result in any lawsuits, losses or damages. Most grantors are not willing to accept legal liability for acts conducted by grantees. While they are providing funding, they are not actively involved in the day-to-day operations of grant-funded projects and receive only periodic reports on progress.
9. Create signature lines for both the grantor and grantee, providing formal titles and full legal business names of both parties. Provide space for a date next to each signature.
