Understanding Regranting: A Guide to Passing Funds to Lower-Tier Sub-Recipients

Regranting is a process by which a sub-grantee (a recipient of funds from a primary grantee) passes through funding to a lower-tier sub-recipient. In other words, the sub-grantee acts as a middleman and passes on the funds to another organization or entity that is further down the chain. This process allows for more targeted funding and can help to reach smaller, local organizations that may not have the resources to apply directly for larger grants.

Regranting can be done in various ways, such as through a formal agreement between the primary grantee and the sub-grantee, or through an online platform that facilitates the transfer of funds. The process typically involves some level of oversight and monitoring to ensure that the funds are being used appropriately and effectively.

Regranting can be beneficial for both the primary grantee and the sub-grantee, as it allows them to focus on their core strengths and expertise, respectively. However, it also presents some challenges, such as managing the additional layer of complexity and ensuring compliance with grant requirements.