Is notarization always required?

Not always. Notarization depends on the funder and the document type. Check the grant guidelines; if unspecified, contact the program officer. For some state agency awards and certain affidavits, notarization and witness signatures may be mandatory.

Who must sign the letter?

An authorized official with budgetary authority should sign—for example a CFO, Executive Director, or Board Chair. Signers should be listed in your organization’s delegation of authority and be able to attest to funding practices.

Can the letter be eSigned?

Yes, electronic signatures are generally valid under ESIGN and UETA if the funder accepts them. For consumer‑facing or certain regulated programs, verify that the eSignature method meets funder authentication requirements.

What supporting documents are typical?

Common attachments include budget pages, prior‑year funding statements, board resolutions, and award letters. Including these reduces follow‑up requests and supports the nonsupplanting assertion during audits.

What if funding rules change mid‑award?

If award conditions or applicable laws change, update the assurance and consult the funder. Document revisions and retain a copy of each version for audit trails and compliance records.

How long must I keep the signed letter?

Retain the letter for the period required by the funder and by applicable law—commonly at least three years after final report; healthcare records follow HIPAA six‑year rules (45 CFR §164.530(j)).

Electronic Signature
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Miscellaneous
Funding Nonsupplanting Letter

Funding Nonsupplanting Letter

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Funding Nonsupplanting Letter

Parties

Funder Name Funder Address Recipient Name Recipient Address

Recitals

WHEREAS, Funder Name: has allocated funds to support certain activities described herein; and

WHEREAS, Recipient Name: is eligible to receive and administer those funds for the project set forth in this Letter; and

WHEREAS, the parties wish to confirm that the funding provided pursuant to this Letter will be used only for allowable purposes and will not supplant existing funding for the same line items or activities.

Scope of Work

Recipient shall use funds solely to carry out the following activities and deliverables within the project described below.

Project Title Detailed Scope of Work

Payment Terms

Funding Amount: $ payable to Recipient Name as set forth below.

Payment Schedule / Milestones

Invoices must be submitted in accordance with the schedule above. Payment will be made within days of receipt of a properly documented invoice.

Late payment shall accrue interest at a rate of on overdue balances, or the maximum allowed by law, whichever is less.

Non-Supplanting Certification

Recipient hereby certifies, represents and warrants that funds disbursed by Funder under this Letter will be used to supplement existing funds and will not be used to replace or supplant funds previously appropriated, budgeted or otherwise available to support the same activities or services. Recipient further agrees that:

Recipient will not reduce its own existing budgeted expenditures for activities supported by these funds;
Recipient will maintain records demonstrating that funding provided hereunder is in addition to, and not in place of, funds previously committed; and
Upon reasonable request, Recipient will provide documentation to Funder sufficient to demonstrate compliance with this certification.

Acknowledgement of Non-Supplanting Certification: I certify compliance with the non-supplanting requirements described above.

Term and Termination

This Letter is effective as of and shall terminate on unless earlier terminated in accordance with this section.

Either party may terminate this Letter for convenience upon days prior written notice to the other party. Funder may immediately suspend or terminate funding if Recipient fails to comply with the non-supplanting certification, misuses funds, or materially breaches any obligation set forth herein following written notice and a reasonable opportunity to cure.

Confidentiality

Subject to applicable law, the parties agree that any non-public information clearly designated as confidential and disclosed in connection with this Letter shall be kept confidential and used solely for purposes of performing obligations under this Letter. Confidential information shall not include information that is or becomes generally available to the public other than by a breach of this obligation, or that is independently developed without reference to confidential disclosures. Each party shall implement reasonable administrative, technical, and physical safeguards to protect confidential information.

Governing Law

This Letter shall be governed by and construed in accordance with the laws of the state of without regard to its conflicts of law principles.

Entire Agreement

This Letter, together with any attachments or exhibits expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. No amendment or modification of this Letter will be effective unless made in writing and signed by both parties.

Representations and Remedies

Recipient represents and warrants that it has the authority to accept funds and to make the certifications set forth herein. In the event of a material breach of the non-supplanting certification, Funder may seek recovery of improperly used funds and any other remedies available at law or in equity.

Funder Printed Name:

Recipient Printed Name:

By:

Date:

What a Funding Nonsupplanting Letter Is and when it matters

A Funding Nonsupplanting Letter is a written assurance from a grant recipient or funding applicant that newly requested or awarded funds will supplement existing funding rather than replace (supplant) it. The document typically identifies the funding source, program, budget line items, period of performance, and the specific activities to be funded, and it affirms that current resources will remain in place. Agencies and grantors use the letter to verify compliance with program rules, to document intent for auditors, and to support eligibility determinations and fiscal monitoring.

Why a clear Funding Nonsupplanting Letter helps protect funding eligibility

A concise nonsupplanting letter reduces audit risk, supports grant eligibility, and documents intent for funders and reviewers.

Who typically prepares and relies on this document

Typical users are grant administrators and finance teams who manage public or private funding compliance.

State and federal grant administrators who require formal assurances for awards
Nonprofit finance directors and school district business officials managing multiple funding streams
Legal counsel and compliance officers verifying statements for audits and monitoring

The letter is also reviewed by program officers, auditors, and legal counsel during award setup and audits.

Primary signers and internal stakeholders

Grant Manager

Responsible for drafting and coordinating the nonsupplanting statement; typically prepares supporting budget exhibits and confirms program eligibility with the funder and internal finance staff.

Chief Financial Officer

Authorized official who signs to bind the organization financially and attest that funds will not replace existing support; often required to approve accounting treatment and retention practices.

Core components to include in a professional Funding Nonsupplanting Letter

A complete letter is focused, references the award or application, and supplies enough detail to let a reviewer verify that funds will be additive rather than replacing existing sources.

Purpose Statement

A short opening that names the grant or funding opportunity and explains the reason for the assurance, e.g., to affirm funds will support described program activities rather than replace existing funding.

Funding Source

Specify the funder name, award number (if assigned), grant program, and whether funds are federal, state, or private to clarify applicable rules.

Non‑supplanting Assurance

A clear declarative sentence such as 'These funds will supplement existing funds and will not be used to supplant any local, state, or federal funds currently budgeted for the same purpose.'

Budget Reference

Reference budget line items, amounts, and period of performance; attach supporting budget exhibits or spreadsheets when required by the funder.

Authorized Signature

Name, title, organization, and date of the authorized official signing the letter; include contact information for follow-up questions.

Supporting Attachments

List and attach any required documents such as budget pages, prior-year funding statements, or agency-specific certification forms.

Step-by-step: completing and delivering the letter

Follow these steps to prepare, sign, and submit a compliant nonsupplanting letter.

01

Draft: Prepare a one-page letter referencing award and budget specifics.
02

Attach: Include budget exhibits and prior funding statements as required.
03

Sign: Obtain signature from an authorized official, and date the letter.
04

Submit: Deliver to the funder per instructions; retain a signed copy for records.

Typical workflow from preparation to funder acceptance

A predictable workflow helps ensure the letter meets funder standards and avoids processing delays.

Prepare: Draft content, reference award, and assemble attachments for clarity.
Review: Internal finance or legal review to confirm accuracy and authority.
Authenticate: Sign with authorized signature; add notarization if funder requires it.
Deliver: Transmit per funder instructions and store signed copy securely.

How to configure an online workflow for this letter

Set up fields and routing so signers and reviewers receive the document in order and attachments are required.

Field	Configuration
Signature Field	Required for authorized official; enforce signer order.
Date Field	Auto‑populate or require MM/DD/YYYY format.
Attachment Field	Set as required for budget exhibits and prior funding statements.
Authentication	Use email or SMS code; require higher-level auth when funder demands.

Technical delivery options and common integration points

Choose a platform that supports PDF/DOCX uploads, required attachments, and secure signer authentication.

File Formats: PDF, DOCX, and Excel attachments supported for budgets.
Integrations: Connect to Salesforce, Microsoft 365, NetSuite, or Google Workspace for routing.
Authentication: Email or SMS verification; higher assurance methods available for sensitive awards.

Security and compliance considerations for handling the letter

In Transit: TLS 1.2/1.3 encryption

At Rest: AES‑256 encryption

Signatory Law: ESIGN and UETA compliant

Healthcare: HIPAA BAA available

Audit Controls: Detailed audit trail retained

Certifications: SOC 2 Type II and ISO 27001

Common preparation errors to avoid

Omitting the award number or funder name, which prevents matching the letter to the correct file and delays processing.
Using vague budget descriptions like 'operational expenses' instead of listing specific line items and amounts required by the funder.
Having an unauthorized person sign the letter; funders often require a named official with budgeting authority to sign.
Failing to attach required supporting documents, which commonly triggers funder follow-up and can delay funding decisions.

Potential consequences of an incorrect or missing letter

Audit Findings: Possible disallowance of charged costs

Repayment: Funds may be clawed back or returned

Contract Breach: May trigger corrective action or termination

Funding Delay: Payment or award may be suspended

Debarment Risk: Severe cases can trigger debarment proceedings

Reputational Harm: Loss of funder confidence and future awards

Typical timing and submission deadlines to track

Timelines vary by funder; set internal deadlines to assemble and approve the letter before submission or award acceptance.

With Application:

Include letter if the funder requests at application time

At Award Acceptance:

Submit any outstanding assurances before accepting the award

Annual Certification:

Some programs require yearly recertification during performance

Audit Response:

Respond to funder audit requests typically within 30 days

Record Retention:

Retain signed copies for the period required by funder

Key milestones from drafting to compliance review

Track milestones so each stage—drafting, review, signature, and filing—completes before the funder deadline.

01

Draft Complete

Prepare final letter and attachments for internal review.

02

Internal Approval

Finance or legal signs off on budget and wording.

03

Authorized Signature

Obtain signature from designated official and date.

04

Filer Submission

Send to funder and archive the signed copy.

Representative eSignature solution pricing and feature snapshot

Basic plan pricing and common features for comparison when you e-sign or route Funding Nonsupplanting Letters; signNow is listed first per vendor convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7‑day free trial, no card	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical examples of when a Funding Nonsupplanting Letter is used

Realistic scenarios illustrate how to tailor the letter content and attachments for different funder requirements.

School District Grant

A district applies for a federal education grant and attaches a nonsupplanting letter naming specific local budget lines

The letter cites the program and confirms local funds remain in place
The district also attaches previous fiscal year budget pages and board resolution to satisfy the funder's audit requirements and document additive funding.

Community Health Center

A health center seeks supplemental grant funding and supplies a nonsupplanting assurance explaining how new funds expand services

The letter references program codes and attaches an expenditure plan
The center includes compliance contact information and retains the signed file for potential state or federal review.

Frequently asked questions about Funding Nonsupplanting Letters

Answers to common questions help avoid delays and ensure the letter meets funder and audit expectations.

Need help? Contact support

Is notarization always required?
Not always. Notarization depends on the funder and the document type. Check the grant guidelines; if unspecified, contact the program officer. For some state agency awards and certain affidavits, notarization and witness signatures may be mandatory.
Who must sign the letter?
An authorized official with budgetary authority should sign—for example a CFO, Executive Director, or Board Chair. Signers should be listed in your organization’s delegation of authority and be able to attest to funding practices.
Can the letter be eSigned?
Yes, electronic signatures are generally valid under ESIGN and UETA if the funder accepts them. For consumer‑facing or certain regulated programs, verify that the eSignature method meets funder authentication requirements.
What supporting documents are typical?
Common attachments include budget pages, prior‑year funding statements, board resolutions, and award letters. Including these reduces follow‑up requests and supports the nonsupplanting assertion during audits.
What if funding rules change mid‑award?
If award conditions or applicable laws change, update the assurance and consult the funder. Document revisions and retain a copy of each version for audit trails and compliance records.
How long must I keep the signed letter?
Retain the letter for the period required by the funder and by applicable law—commonly at least three years after final report; healthcare records follow HIPAA six‑year rules (45 CFR §164.530(j)).

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