Grants are a powerful engine for social progress in Georgia, but their effectiveness hinges on a well-defined legal framework. At its core, a grant is a specialized legal instrument, and navigating its lifecycle requires expertise that serves both grant-makers and recipients. Our comprehensive legal advisory covers every stage of the grant process, from initial structuring to final reporting. We provide the legal certainty that allows donors to fund with confidence and empowers Non-Governmental Organizations to implement projects efficiently, ensuring the entire grant ecosystem operates with maximum impact and full compliance.
The legal and financial treatment of grants in Georgia begins with a precise definition rooted in national legislation. The Law of Georgia on Grants defines a grant as a targeted, gratuitous transfer of funds or assets for specific, clearly outlined public-benefit purposes, such as education, science, healthcare, or human rights. This specific legal classification is the essential key that unlocks the preferential treatment provided under the Tax Code of Georgia. Understanding and correctly applying this definition from the outset is fundamental to securing the significant tax benefits associated with grant funding.
The Grant Agreement is the contractual heart of the relationship, governed by the principles of the Civil Code of Georgia. We act as legal architects for this critical document, serving both sides of the partnership. For donors, we draft robust and precise agreements that establish clear programmatic goals, key performance indicators, monitoring frameworks, and clauses to protect funds from misuse. For recipient NGOs, we conduct a meticulous review of proposed agreements, analyzing obligations, reporting burdens, intellectual property rights, and liability clauses to ensure the terms are fair, manageable, and protective of the organization’s interests. We also specialize in structuring complex multi-party arrangements, including the drafting of sub-grant agreements.
A crucial and mandatory step in the grant lifecycle is securing its formal tax-exempt status. This requires the registration of the grant with the Georgia Revenue Service. Our firm manages this entire administrative process to obtain the official exemption from Corporate Income Tax on the received funds, thereby preventing any future tax liabilities. Our expertise also extends to the nuanced issue of VAT on goods and services procured with grant money, where we advise on the conditions under which such expenses may also be granted tax relief. This specialized tax guidance ensures that the maximum value of every grant is directed toward the mission, not administrative burdens.
Our service is designed as a holistic partnership that provides legal support throughout the entire grant lifecycle. From advising donors on structuring compliant calls for proposals to guiding recipient NGOs through final audits and project close-out procedures, we are a central legal resource for Georgia’s grant-funded sector. Our team at Legal Sandbox Georgia ensures that the full journey of a grant—from its conception to its completion—is built on a foundation of legal integrity. This allows both funders and implementers to maximize their social return on investment, confident that they are navigating the legal landscape with an expert ally.
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