Glossary
Grants

No-Cost Extension

By: Alec Hollingsworth
Updated:  
June 16, 2025

DEFINITION:

A no-cost extension allows a grant project period to be extended without awarding additional funds.
A No-Cost Extension (NCE) is a formal process that allows a grant recipient to extend the project period beyond the original end date without receiving additional funding. This extension is typically requested when a nonprofit needs more time to complete the objectives outlined in the grant agreement, often due to unforeseen delays or circumstances. The extension does not increase the total grant amount but gives the organization the opportunity to use remaining funds. Approval from the grantor is usually required, and detailed justification must be provided. Nonprofits must continue to comply with all reporting and regulatory requirements during the extension period.

Key Takeaways

  • Extends the grant period without extra funding
  • Requires approval from the grantor
  • Enables completion of project objectives
  • Remaining funds can be used during the extension
  • Compliance and reporting duties persist

Why It Matters

It ensures nonprofits can fulfill grant objectives without losing access to remaining funds.

Real World Example

A nonprofit organization receives a government grant to support a community health program scheduled to conclude in December. Due to unexpected delays in hiring staff, the project is only partially complete by the original end date. The nonprofit formally requests a no-cost extension, explaining the reasons for the delay and outlining how the remaining funds will be used. The grantor approves a six-month extension, allowing the nonprofit to finish its activities and achieve the intended outcomes without receiving additional funds.

How Aplos Helps

In Aplos, tracking grant funds and reporting on project timelines is streamlined. If your nonprofit receives a no-cost extension, you can update project dates and monitor expenditures within Aplos to ensure compliance with grantor requirements and maintain accurate financial records.
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Frequently Asked Questions

What is a no-cost extension?

A no-cost extension lets a nonprofit extend a grant project period without receiving more funds, allowing time to complete objectives with existing resources.

Do you need approval for a no-cost extension?

Yes, most grantors require formal approval and a justification for why the extension is needed.

Does a no-cost extension increase the grant amount?

No, a no-cost extension only extends the timeline. It does not provide any additional funding.

What should be included in a no-cost extension request?

Requests typically include reasons for the delay, a plan for remaining funds, and an updated project timeline.

How can Aplos help track no-cost extensions?

Aplos allows you to update project dates and monitor spending, ensuring compliance and accurate reporting during the extension period.

Related Terms

Faith‑Based Organization
Annual Information Return
Sales Tax Exemption
Strategic Plan
Fiscal Sponsorship
UBIT (Unrelated Business Income Tax)

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