Recoverable Grants

A recoverable grant is a form of philanthropic funding that combines elements of both a traditional grant and an investment. Recoverable grants are given to a nonprofit organization by a private foundation with the expectation that the funds will be repaid if certain conditions are met. Private family or corporate foundations supporting a Social Impact Entertainment production may structure their support as a recoverable grant to achieve financial returns if the production does well, with the funds returning to the foundation.

Recoverable grants are often used to fund projects or initiatives that have the potential to generate revenue but may not be able to secure traditional financing, such as entertainment productions. For foundations, recoverable grants provide a way to support innovative and potentially high-impact projects while preserving the financial upside if the production generates financial returns. If the production is successful, the grant funds can be recovered by the foundation and redeployed to support other philanthropic initiatives.