3. Payment

1. Payment Method

Installment Payments: To reduce risk, adopt an installment payment method with funds disbursed in stages based on project progress. Common installment structures include initial funding, milestone payments, and final payment.
Milestone-Based Payments: Payments are tied to key project milestones, with funds only released when specific milestones or deliverables are met.
Batch Payments and Retention: Retain a certain percentage (e.g., 10-20%) of the funds, to be paid after full project delivery, ensuring the project meets the foundation's expectations and quality standards.

2. Payment Conditions

Acceptance Criteria: Each payment must meet specific acceptance criteria, which can include deliverables, progress reports, test reports, etc., to ensure the project meets quality requirements.
Review and Approval Process: The project team must provide required documents and proof for acceptance. Payments are released after the foundation's review and approval.
Financial Compliance of the Project Team: The project team should submit the latest financial status report to ensure financial health and the ability to fulfill the contract.

3. Payment Schedule

Initial Payment: The first portion of the project funds is paid after signing the agreement, typically for the project startup phase to ensure sufficient initial resources.
Stage Payments: Payments are made according to project stages, typically divided into fixed stages (e.g., development, testing, promotion). Each stage’s payment amount and timing must be specified in the agreement.
Final Payment: The remaining funds are paid after project completion and final acceptance to ensure the team delivers all agreed-upon deliverables.
Payment Grace Period: Each payment includes a reasonable grace period for completion. In case of delayed payment, the project team must be notified with an explanation.

4. Funding Usage Report and Audit

Stage Funding Report: Before each payment, the project team must submit a fund usage report detailing the use of previously disbursed funds, including expense breakdowns and remaining balances, to ensure funds are spent on project needs.
Regular Financial Audits: The foundation may require independent financial audits to ensure compliance and transparency of fund use. Regular audits are recommended for large grants to effectively monitor cash flow.
Report Verification and Adjustments: After reviewing reports, the foundation reserves the right to request explanations or adjustments if any irregularities are found to ensure compliance and transparency.

5. Payment Method and Account

Bank Transfer: Typically, payments are made via bank transfer to the designated legal account of the project team. The project team must provide account details and ensure compliance.
Cryptocurrency Payment (if applicable): If agreed, payments in cryptocurrency must have accurate details for the type, wallet address, etc., and ensure payment security.
Notification of Account Changes: If the project team needs to change the payment account, prior notice and approval from the foundation are required to ensure payment security.

6. Terms for Breach and Deductions

Deductions for Unmet Goals: If the project team fails to complete a stage on time or meet goals, the foundation reserves the right to reduce or suspend payments for that stage until issues are resolved.
Delayed Payment Terms: The foundation may delay payments for stages that fail to submit reports on time or pass reviews, resuming payments once criteria are met.
Liabilities for Breach: In the event of severe breach, the foundation reserves the right to cease further payments and pursue repayment of funds already disbursed. The project team is liable for any legal consequences arising from the breach.

7. Fund Handling After Agreement Termination

Unpaid Amounts: In cases of early termination, unpaid funds will not be disbursed, and the foundation reserves the right to reallocate or reclaim funds.
Recovery of Disbursed Funds: For disbursed but unused funds, the project team must return the remaining amount to the foundation or, with approval, allocate it to other eligible uses.
Settlement and Reconciliation Terms: After agreement termination, the project team must submit a final financial reconciliation report and undergo an audit by the foundation to ensure a transparent and compliant settlement process.

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Last updated 5 months ago

3. Payment

1. Payment Method

Installment Payments: To reduce risk, adopt an installment payment method with funds disbursed in stages based on project progress. Common installment structures include initial funding, milestone payments, and final payment.
Milestone-Based Payments: Payments are tied to key project milestones, with funds only released when specific milestones or deliverables are met.
Batch Payments and Retention: Retain a certain percentage (e.g., 10-20%) of the funds, to be paid after full project delivery, ensuring the project meets the foundation's expectations and quality standards.

2. Payment Conditions

Acceptance Criteria: Each payment must meet specific acceptance criteria, which can include deliverables, progress reports, test reports, etc., to ensure the project meets quality requirements.
Review and Approval Process: The project team must provide required documents and proof for acceptance. Payments are released after the foundation's review and approval.
Financial Compliance of the Project Team: The project team should submit the latest financial status report to ensure financial health and the ability to fulfill the contract.

3. Payment Schedule

Initial Payment: The first portion of the project funds is paid after signing the agreement, typically for the project startup phase to ensure sufficient initial resources.
Stage Payments: Payments are made according to project stages, typically divided into fixed stages (e.g., development, testing, promotion). Each stage’s payment amount and timing must be specified in the agreement.
Final Payment: The remaining funds are paid after project completion and final acceptance to ensure the team delivers all agreed-upon deliverables.
Payment Grace Period: Each payment includes a reasonable grace period for completion. In case of delayed payment, the project team must be notified with an explanation.

4. Funding Usage Report and Audit

Stage Funding Report: Before each payment, the project team must submit a fund usage report detailing the use of previously disbursed funds, including expense breakdowns and remaining balances, to ensure funds are spent on project needs.
Regular Financial Audits: The foundation may require independent financial audits to ensure compliance and transparency of fund use. Regular audits are recommended for large grants to effectively monitor cash flow.
Report Verification and Adjustments: After reviewing reports, the foundation reserves the right to request explanations or adjustments if any irregularities are found to ensure compliance and transparency.

5. Payment Method and Account

Bank Transfer: Typically, payments are made via bank transfer to the designated legal account of the project team. The project team must provide account details and ensure compliance.
Cryptocurrency Payment (if applicable): If agreed, payments in cryptocurrency must have accurate details for the type, wallet address, etc., and ensure payment security.
Notification of Account Changes: If the project team needs to change the payment account, prior notice and approval from the foundation are required to ensure payment security.

6. Terms for Breach and Deductions

Deductions for Unmet Goals: If the project team fails to complete a stage on time or meet goals, the foundation reserves the right to reduce or suspend payments for that stage until issues are resolved.
Delayed Payment Terms: The foundation may delay payments for stages that fail to submit reports on time or pass reviews, resuming payments once criteria are met.
Liabilities for Breach: In the event of severe breach, the foundation reserves the right to cease further payments and pursue repayment of funds already disbursed. The project team is liable for any legal consequences arising from the breach.

7. Fund Handling After Agreement Termination

Unpaid Amounts: In cases of early termination, unpaid funds will not be disbursed, and the foundation reserves the right to reallocate or reclaim funds.
Recovery of Disbursed Funds: For disbursed but unused funds, the project team must return the remaining amount to the foundation or, with approval, allocate it to other eligible uses.
Settlement and Reconciliation Terms: After agreement termination, the project team must submit a final financial reconciliation report and undergo an audit by the foundation to ensure a transparent and compliant settlement process.

Previous2. Review Next4. Disclosure

Last updated 5 months ago