subsidiairegeling

Subsidiairegeling is a term used in Dutch-language contexts to describe a funding arrangement in which subsidies are allocated to subsidiaries or subordinate entities within a parent organization or network, rather than being awarded directly to the end recipients. The concept emphasizes a structured flow of funds through a central coordinating body to multiple affiliated units, with the aim of improving governance, targeting, and oversight.

The name combines elements that refer to a subsidiary or secondary level of organization and to a structured funding arrangement. While the precise application can vary, subsidiairegeling generally involves a central program or fund that sets objectives, criteria, and reporting requirements, with sub-grants or allocations issued to eligible subsidiary entities that carry out specific activities.

In practice, subsidiairegeling is used in public sector programs, international development networks, and corporate social responsibility or philanthropic structures. It can cover grants, concessional lending, or equity-like support, always governed by contractual arrangements that specify use of funds, milestones, and accountability mechanisms. Monitoring and auditing are common features to ensure alignment with program goals and compliance with applicable rules.

Advantages often cited include clearer governance, more targeted distribution of resources, and streamlined administration for the coordinating body. Challenges can include increased administrative complexity, potential opacity of fund flows, and the need to maintain rigorous due diligence and compliance across multiple entities.

See also: subsidy, grant, state aid, subgrants, corporate social responsibility.