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  • Amy Murphy

PART 1: Understanding Lump Sum grants and how they work

We have written a three-part series which delves into Lump Sum grants, explaining their core concepts, effects on Horizon Europe project management and limits:

Lump Sum funding is a novel method by the European Commission. Its goal is to simplify budgeting and grant justification, lessening the paperwork. This helps project coordinators in Horizon Europe projects by reducing administrative burdens and making EU funding more accessible. After a successful pilot in Horizon 2020, a significant introduction of Lump Sum calls is planned for 2023-2024. Around 20-25% of large research projects are expected to adopt this approach.

PART 1: Understanding Lump Sum Grants:

What is lump-sum funding?

Lump Sum grants provide recipients with a fixed amount of funding for their projects. Instead of focusing on tracking every penny spent, these grants provide a fixed amount of money for a project. In the grant agreement, a lump sum share is assigned for each work package in the budget table, which determines the overall lump sum.

Two Types of Lump Sum Grants:

Lump Sum Option 1 (pre-fixed) and Option 2(defined in the proposal)

How is the Lump Sum amount determined?

The granting authority sets the lump sum based on:

  1. Approximating actual costs.

  2. Applicants proposing an amount based on their project expenses.

  3. Only including eligible costs per Horizon Europe rules.

Why use Lump Sum funding?

Advantages of Lump Sum Funding:

  • Reduces administrative burden.

  • Simplifies the process.

  • Attracts newcomers to funding.

  • Prioritizes project outcomes over finances.

How Are Lump Sum grants different from other grants?

Although a new mechanism, many aspects of the grant remain the same as for other Horizon Europe projects.

Many aspects are similar to other Horizon Europe projects. Standard templates, criteria, and payment schedules are used.

Specific Differences:

Lump Sum specific Differences: 1.Implementation Criteria. 2. Reporting and Verification3. Payment process

How to write a Lump Sum proposal?

  1. Use Horizon Europe application form.

  2. Describe objectives, methodology, and outcomes.

  3. Detail activities in each Work Package.

  4. Define and justify the lump sum with cost breakdown.

  5. Use Excel detailed budget table for estimations.

  6. Check reasonableness and justification of costs.

Lump sum grant agreements follow a standardized process based on the Model Grant Agreement. While there's a "no negotiation principle," certain changes are permissible to address errors, inconsistencies, and rule compliance. The lump sum in the Evaluation Result Letter can be adjusted if necessary.

What are some useful resources to further understand lump sum funding?

Read the other articles of this 3-part series on lump sum funding:

Also Explore:

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