The grantmaker’s guide to wording ethical standards into grant agreements 

Ethical standards and values are the bedrock of integrity, compliance and good conduct in grantmaking. By including the correct wording about your standards in your grant agreements you can minimise risk in your grantmaking cycle, effectively turning those values into contractual obligations.

While we recommend using a legal team to help you create any contractual agreements, we can help you get started by offering some ideas for the language you need to convey any relevant values and standards.

6 Considerations when wording ethical standards and values in your grant agreements

Disclaimer: This article serves to share ideas about drafting grant agreements and should not serve as direct legal advice.

1. Cover legal compliance

Clear language about legal compliance specifies that all activities related to the grant agreement follow applicable laws and regulations. It informs both parties about their rights and obligations under the law; this can pre-empt legal disputes and penalties.

To adequately provide for legal compliance in your grant agreements, consider specifying the consequences of non-compliance such as corrective actions or suspension of funding in case of a serious breach by the grantee.

Template: Legal compliance

This agreement shall be governed by and construed according to the laws of [relevant jurisdiction]. The grantee agrees to comply with all applicable local, state, national and international laws. In the event of non-compliance, the grantor may require the grantee to take specific corrective actions to redress the issue. Depending on the severity of the non-compliance or in the case of inadequate implementation of corrective actions, the grantor reserves the right to terminate this agreement.

Tip: Good Grants can help! It’s easy to create and configure a contractual agreement in your grant application in Good Grants. Learn more.

2. Emphasise environmental responsibility

Protecting the environment is a significant aspect of ethical values. Adding a clause around environmental responsibility in your grant agreement ensures the project your organisation funds is eco-friendly. This can help ensure adherence to relevant environmental laws, forestall environmental crises, enhance your organisation’s reputation and build trust with stakeholders.    

Template: Environmental responsibility 

This grant agreement shall adhere to all applicable environmental laws and regulations. The grantee agrees to implement sustainable practices such as conserving energy, reducing waste and using eco-friendly materials to minimise environmental impact during project execution. The grantee also agrees to regularly conduct assessments to identify project implementation techniques that may negatively affect the environment and take appropriate steps to address the situation.  

Tip: Good Grants is completely online. There’s no need to save paper files, print out applications or grant reports. You can simply store them in Good Grants for easy reference, any time.

3. Regulate conflicts of interest

Conflicts of interest can compromise the integrity and effective execution of grant projects. Grant agreements need to include thorough disclosure and monitoring requirements. Some scenarios where conflicts of interest may arise in grant agreements include:

• Persons involved in the grant decision-making process having some form of personal interest in the outcome of the grant project or having stakes in both the grantor and grantee organisations
• Selecting contractors or vendors based on personal relationships or incentives instead of merit or a competitive bidding process
• Personal relationships influencing decisions regarding the allocation of grant funds
• Altering research results to favour personal or professional interests

Template: Conflicts of interest

The parties agree to promptly disclose any actual, potential or perceived conflicts of interest that may arise regarding this grant. The parties must provide full details of the nature and extent of the conflict and outline steps to be taken to eliminate the said conflict of interest. The parties must continuously monitor for conflicts of interest and disclose any conflicts of interest that arise during the term of the grant agreement.

Tip: Good Grants offers helpful tools to protect the integrity of your review process. Proactively block reviewers from specific applications based on a known conflict of interest or facilitate voluntary abstention— all toward decision outcomes with integrity. Learn more. 

4. Provide for the protection of research subjects

Often, grantors fund research to drive advancement in various fields. The reality is that research subjects can be exposed to multiple risks depending on the nature of the study. Injury, emotional or mental distress, stigmatisation and violation of privacy are a few of the risks that participants might face.

Using the right wording in grant agreements to address the protection of research subjects can be an effective way to safeguard their rights and welfare while maintaining the integrity of the research process.

Template: Protection of research subjects

The grantee agrees to conduct all research activities related to this grant according to the applicable laws and with permission from the relevant body supervising the protection of research subjects. The grantee agrees to obtain and document the informed and voluntary consent of all research subjects. The grantee must cease research upon the withdrawal of consent by the research subject. The grantee must minimise risks to research subjects and ensure that any risk faced is reasonable compared to the potential benefits of the research. Any adverse outcomes or unanticipated problems must be promptly communicated to the research subjects, the grantor and the relevant body supervising the protection of research subjects. The research must be discontinued immediately.

5. Stipulate measures for transparency and accountability

Covering transparency and accountability in your grant agreement specifies how funds should be managed and reported, ensuring that resources are used for their intended purposes. Laying down rules for expenditure and financial reporting demonstrates your commitment to ethical standards which can boost your credibility.

Template: Transparency and accountability

The grantee agrees to conduct all activities related to this grant with utmost transparency and accountability to ensure the responsible and ethical use of the grant funds. The grantee must maintain accurate and complete financial records of all related expenditures. The grantee agrees to provide regular financial reports to the grantor, detailing the status of project activities, achievements, challenges and outcomes for the purpose of monitoring and auditing.

Tip: Good Grants offers robust reporting functionality, which means you as the grantmaker can bake transparency and accountability into your grant reporting workflow. Learn more.

6. Incorporate guidelines for equity and cultural sensitivity

Ethics emphasises recognising and addressing the different needs of individuals and groups, and stresses the importance of treating everyone fairly and with respect. 

Comprehensively covering equity and cultural sensitivity in your grant agreement ensures that diverse populations, including historically underrepresented and marginalised communities, enjoy equitable access to the benefits of the grant. It also reduces the risk of cultural misunderstanding by promoting awareness and respect for cultural differences. 

Template: Equity and cultural sensitivity

The grantee agrees to conduct all activities funded by this grant in a manner that upholds the principles of equity and cultural sensitivity. The grantee will ensure that all individuals and groups will have access to the benefits of the grant regardless of race, ethnicity, gender age, disability, sexual orientation, religion, socioeconomic status or any other irrelevant factor. The grantee agrees to actively engage with the different communities to understand their needs, preferences and cultural contexts. The grantee agrees to implement culturally competent practices that acknowledge and respect the various cultural contexts, backgrounds and traditions of the various communities.

Tip: You can easily collect demographic information in Good Grants via your forms—either in the initial opportunity application or in subsequent grant reports. Learn more. 

Using these tips to add the right language to your grant agreements around ethical standards and values can ensure the grant funds are used for the target purposes. It can also guarantee that projects are implemented sustainably, conflicts of interest are eliminated and the grant processes are equitable.

Curious how Good Grants can help? Start a free trial today.