Wednesday, 7 November 2012

EU-Call for Proposals LLP 2013: Bank Guarantees

At the DARE GA 2011 several members indicated they have difficulties in receiving tha bank guarantees required for the applications under the Lifelong Learning Call for Proposals.
The DARe board asked the European Commission in a letter for advise how to handle this problem.
The Head of the Grundtvig Unit Ms Dana Carmen Bachmann, replied to our questions as follows:

"A bank guarantee may be requested in case the applicant organisation cannot demonstrate that it has the financial capacity and financial stability to carry out the proposed project. [...]"
Organisations that have already undertaken "as an applicant several projects in the LLP [...] may agree that an applicant ortganisation representing a whole partnership must have stable and sufficient sources of funding necessary for maintaining their activity throughout the period during which the proposed project is to be carried out and above all for its co-funding. [..] In so far an organisation receives more than half of its annual revenue from public sources (other than EU funds) it is considered as a public body and is then normally exempted from a financial capacity check.[...]"

Organizations that  lack this pre-requirements are accordingly welcome as partners in centralised projects and therefore are not excluded from European cooperation. Any organisation active in non-formal education is always welcome to participate in a project or network as members of a given partnership, as long as one organisation which has the necessary financial capacity to undertak ethe project or to comply with the bank guarantee requirement takes over the role of the applicant organisation.

The current LLP Call for 2013 further indicates that
"3. Financial guarantees are no longer requested for grants lower than or equal to 60.000 €."