A grantee is the entity (organization or person) who ultimately benefits from grant payments. While the payment might not always go directly to the grantee, they are the intended beneficiary of the funds.
Understanding Grantees Through Examples
1. Scholarship Students:
When a foundation sends a payment to an organization on behalf of the grantee, the student is the grantee because they benefit from the funds, even though the payment might go to their university. For example:
- The foundation sends a $6,000 scholarship payment to State University
- State University applies this to Jane Smith's tuition
- Jane Smith is the grantee, while State University is the payment receiver
2. Direct Support to Individuals:
Sometimes, the grantee receives payments directly:
- The foundation sends a research grant payment to James Wilson's personal account
- Wilson uses these funds for his research expenses
- Wilson is both the grantee and the payment receiver
3. Non-Profit Organizations:
Organizations can also be grantees:
- The foundation sends funding to Hope Haven Women's Shelter
- The shelter uses these funds to provide services to women in need
- Hope Haven is both the grantee and the payment receiver
Key Points About Grantees
- A grantee may or may not receive payments directly
- A grantee can also be an individual receiver if receiving payments directly
- A payment can be made to a receiver on behalf of multiple grantees
- Multiple payments can be made on behalf of a single grantee
- An organization can be both a grantee and a payment receiver
Common Questions
What's the difference between a grantee and a payment receiver?
A payment receiver is the entity that physically receives the payment (ACH or digital check), while the grantee is the intended beneficiary of the funds. Sometimes these are the same entity (like when a student receives funds directly), but often they're different. For example, when a foundation pays a university (receiver) for a student's scholarship (grantee).
Can a grantee have multiple payment receivers?
Yes. For example, a student grantee might have scholarship payments sent to both their university for tuition and their landlord for housing expenses.
Does the grantee always know they're a grantee?
Yes. When a payment is sent, the issuer can set up an option to notify the grantee during the process. Even when payments are made to another organization on their behalf, the grantee should always be aware they are receiving grant benefits.
What information is needed to set up a Grantee?
Typically, you'll need:
- Grantee name
- Grantee email address
- Mobile phone number
- Student ID
- SSN
- Address information