PART ONEFINANCIAL REGULATION
TITLE VIIIGRANTS
CHAPTER 2 Principles
Article 192No-profit principle
1.
Grants shall not have the purpose or effect of producing a profit within the framework of the action or the work programme of the beneficiary (‘no-profit principle’).
2.
For the purposes of paragraph 1, a profit shall be defined as a surplus, calculated at the payment of the balance, of receipts over the eligible costs of the action or work programme, where receipts are limited to the Union grant and the revenue generated by that action or work programme.
In the case of an operating grant, amounts dedicated to the building up of reserves shall not be taken into account for verifying compliance with the no-profit principle.
3.
Paragraph 1 shall not apply to:
(a)
actions the objective of which is the reinforcement of the financial capacity of a beneficiary, or actions which generate income to ensure their continuity after the period of Union financing provided for in the grant agreement;
(b)
study, research, training or education support paid to natural persons or other direct support paid to natural persons most in need, such as unemployed persons and refugees;
(c)
actions implemented by non-profit organisations;
(d)
grants in the form referred to in point (a) of the first subparagraph of Article 125(1);
(e)
low value grants.
4.
Where a profit is made, the Commission shall be entitled to recover the percentage of the profit corresponding to the Union contribution to the eligible costs actually incurred by the beneficiary in carrying out the action or work programme.