Question

A city will serve as a conduit for federal grant money, which is sent to the city by the state government and must be remitted to various not-for-profit organizations that will use the money. The ultimate allocation of the money is decided by the state government. Which of the following terms describes the nature of this grant?(A) Agency grant(B) Fiduciary grant(C) Pass-through grant(D) Partial Grant

Answer 1

Answer:

(C) Pass-through grant

Explanation:

A pass-through grant occurs when a recipient of a grant is allowed by the government to provide funding to other recipients. Funds are received and passed along to other recipients.

The party that receives funding from the pass-through entity is called the subrecipient.

This usually occurs when government lacks the structure to effectively push grant initiatives.

In this instance when states provide funds to the city for onward delivery to not for profit organisations, the city is acting as a pass-through entity.