Grants

Track grant funding with disbursement schedules and income recognition.

The Grants building block tracks non-dilutive funding sources. Grant income is spread across the grant duration and flows through to your financial statements.

Video Tutorial

Grants Tutorial

Grants Overview

The Grants page lists all your grant funding, showing the grant name, total amount, and disbursement schedule. Profitual also has a Summary table where you can see the monthly breakdown of your Income from each Grant.

You can also edit the Summary table directly to adjust monthly amounts.

Creating a Grant

To add a grant:

  1. Navigate to Building Blocks → Grants in the sidebar
  2. Click “Add Grant”
  3. Enter the grant name, description, total amount, duration, and start date
  4. Click “Save”
Grant Name: SBIR Phase I
Description: Small Business Innovation Research grant
Total Grant Amount: $275,000
Duration (months): 6
Start Date: April 2024
Grant recurs: No

Profitual adds the lump sum to your Cash, and automatically spreads the Income across the full grant duration.

Recurring Grants

You can also model recurring grants with an optional delay between the previous grant and the next. For example, a grant that only applies for part of the year, but that you can re-apply for every year:

Grant Name: State R&D Credit
Total Grant Amount: $50,000
Duration (months): 6
Start Date: January 2024
Grant recurs: Yes
Delay (months): 6

Types of Grants

Government Grants

  • SBIR/STTR - Small Business Innovation Research
  • State programs - Economic development grants
  • R&D tax credits - Often treated similarly

Foundation Grants

  • Program grants - For specific initiatives
  • Operating grants - General support
  • Capacity building - Organizational development

Corporate Grants

  • Accelerator programs - Often include cash grants
  • Innovation challenges - Competition-based funding

Impact on Financial Statements

Income Statement

On the Income Statement, grants appear as Other Income — separate from your operating revenue.

Cash Flow Statement

Cash inflow appears when funds are received. Grants do not affect equity.

Balance Sheet

Cash increases when grants are received.

Grants vs. Other Funding

Factor Grants Equity Debt
Dilution None Yes None
Repayment None None Yes
Restrictions Often Sometimes Sometimes
Timeline Long Variable Moderate
Competition High High Moderate
Non-dilutive funding
Grants don’t dilute ownership. However, they often have restrictions on use and competitive application processes.