The no-profit rule applies to all projects in Horizon 2020. The EU Commission defines certain receipts, that have to be declared as such in the final report.
The following are considered receipts:
- income generated by the action (e.g. from conference fees, sale of equipment)
- financial contributions by third parties specifically to be used for the action
- in-kind contributions by third parties free of charge and specifically to be used for the action used to cover eligible costs
E.g. the following are not considered receipts:
- income generated by exploiting the action’s results (e.g. income from the sale of intellectual property),
- financial contributions by third parties that may be used to cover non-eligible costs
- financial contributions by third parties specifically to be used for the action without obligation to repay any unused amount at the end of the action
- financial contributions by one beneficiary to another within the same action
- in-kind contributions by third parties free of charge not specifically to be used for the action
Receipts must be indicated in the final report. At the time of the balance payment, the EU Commission will take into account whether the receipts have resulted in a profit at consortium level (NOT at beneficiary level!):
If the EU grant plus receipts are higher than the total eligible costs of the action, the grant will be reduced.
The consortium may specify in the Consortium Agreement e.g. that the grant reduction is borne by the beneficiary who has generated the receipts.
More information can be found ...
- in the Annotated Grant Agreement (AGA), article 5.3.
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