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Recoverable grant
A grant that is repaid to the funder only if the recipient hits pre-agreed milestones. If they don't, it stays a grant — the funder never loses their charitable status and takes no financial return. Repaid capital is recycled to fund the next recipient.
In practice
A foundation makes a $100k recoverable grant to a social enterprise for a bridging need. The enterprise succeeds, repays it, and the $100k funds the next founder — 100% philanthropic, no return to the funder.
Definition adapted, with credit, from Adventure Finance glossary (Aunnie Patton Power).
Educational only — not financial, tax or legal advice.