Public Grant (Subvención Pública)

A public grant is a monetary contribution without direct counterpart that an administration (city council, provincial council, region, ministry) awards to fund part of the club's activity. The general regulation is Spain's Ley 38/2003 on Grants, and the specific regulatory bases of each call.

We distinguish earmarked grants (tied to a specific purpose: equipment, travel, inclusive school) and non-earmarked grants (free use within the club's purpose). Earmarked grants require detailed documentary justification (invoices, reports) on time; non-compliance can force reimbursement with interest.

Tax-wise: earmarked grants for statutory activity are usually exempt from IS under the partially exempt regime. Non-earmarked may be taxable. Capital grants are recognised over the depreciation of the funded asset.

Applies when the club applies for a grant call and is selected. Before applying, read the regulatory bases in detail (eligible expenses, deadlines, requirements). After being awarded: spend the money exclusively on justifiable items and keep invoices and reports for the justification period (typically 3-6 months after activity closure).

• Spending on non-eligible expenses: requires reimbursement of the corresponding portion with interest.
• Justifying late: causes loss of right to payment or reimbursement.
• Not reading the bases before applying: many grants have requirements impossible for small clubs (guarantees, etc.).
• Not recording the grant in the accounting: breaches the non-profit accounting plan and complicates audits.

If you care about this term, you probably also wonder about these:

• Partially Exempt Entities (IS)

  Tax

• Modelo 200 (Spanish Corporate Tax Return)

  Tax

• Ley 49/2002 (Public Utility Regime)

  Tax

• Registry of Sports Entities (Registro de Entidades Deportivas)

  Administrative