Grant and subsidy law is a rather specialized area of law. The area of law deals with the legal relationships between donors and recipients of grants. In principle, the state promotes certain purposes that benefit the general public. Funding is provided regularly through financial donations and allocations. Grants come in a variety of areas. In this way, companies in the area of the labor market or the economy are promoted.
To this end, the grant recipients submit applications for funding within the framework of the guidelines for the individual funding programs. The recipient of the grant approves the funding projects with an approval notice or refuses the funding with a rejection notice!
If the funding is approved, the recipients submit applications for the payment of funds. At the end of the project, a so-called proof of use is submitted, which is used for the final accounting of the project. Here, a binding official decision is made by the approving authority on the approved grant. As a result, the grant may be revoked, with which a reclaim of the grant money is determined if the grant money has not been used appropriately.
As part of the entire funding process, there are regular legal disputes regarding the eligibility, eligibility and eligibility of expenditure for funding. For the beneficiaries, especially non-profit organizations, this can result in severe financial disadvantages, even threats to their very existence.