nonrepayable

Nonrepayable refers to financial support that does not require repayment by the recipient. In finance, public policy, and nonprofit activity, nonrepayable funds are commonly delivered as grants, gifts, or subsidies and contrast with repayable financing such as loans or bonds. The term can apply to individuals, organizations, projects, or programs that receive funding with no obligation to repay the principal or interest.

Sources of nonrepayable funds include government programs, philanthropic foundations, international agencies, universities, charitable organizations, corporations (through corporate social responsibility or charitable giving), and disaster relief funds. Types range from unconditional grants, which have no strings attached, to conditional grants, which impose reporting, performance, or outcome requirements. Common examples are education scholarships, research grants, cultural grants, humanitarian aid, regional development subsidies, and emergency relief allocations.

In accounting and reporting, nonrepayable funds are generally recognized as income for the recipient. Restrictions or conditions attached to the funds may dictate permissible uses and reporting obligations; failure to meet conditions can trigger repayment or clawback in some programs. For donors or funders, granting nonrepayable funds is often aimed at achieving policy, social, or charitable objectives, rather than generating a financial return.

The term emphasizes the absence of a repayment obligation, but it does not imply the absence of accountability. Recipients may be required to report outcomes, comply with spending guidelines, or demonstrate the intended impact to retain or renew funding. Related concepts include grants, subsidies, donations, and forgivable loans, which differ mainly in terms of repayment conditions.