Which principle ensures that grant beneficiaries do not profit from the EU grant?

Prepare for the CAST Project Management FG IV Test. Utilize flashcards and multiple choice questions, each with hints and explanations. Achieve success in your exam!

The principle that ensures grant beneficiaries do not profit from the EU grant is the non-profit principle. This principle is fundamental in the context of EU funding, as it mandates that grants awarded must not result in any financial gain for the beneficiaries beyond the purpose of the project. The intent is to ensure that the funds are used solely for the intended activities and objectives, rather than allowing beneficiaries to generate profit from public funds. This aligns with the overarching goals of accountable and responsible use of resources provided by the EU, ultimately ensuring that grants serve their educational, social, or developmental purposes without enabling profit-making motives.

The other principles mentioned, while important in the context of grant management, do not directly relate to the prohibition of profit from the awarded grants. Non-retroactivity refers to the principle that rules cannot apply to actions or events that occurred before they were established, and while it ensures fairness in terms of timing and application of rules, it does not address the profit issue. Equal treatment ensures fairness among applicants when grants are awarded, and transparency involves clear communication and openness about the funding processes and decisions, but neither principle addresses the non-profit requirement directly like the non-profit principle does.

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