I do think this is a good question, but on the other hand clawbacks will take months or years to happen. If an org expects to hold on to this money for that much time, emergency funding should probably be directed elsewhere.
I don’t really understand the specific situation your describing, and this is not legal advice, but I think in general one can say that if how much money “your org” has (wherever they get it from) shouldn’t really influence the size or validity of a hypothetical clawback claim, but it of course might influence if the claim is persued and how much money the claimer might actually be able to get from “your org”.
There is probably way too much in the air for anyone to answer your question, especially at that level of generality.
This is a opportunity for bridge funding, so presumably the grantee would have spent additional funds in the amount of the bridge grant that they would not have spent otherwise.
So the risk that Nonlinear’s generosity ends up in the bankruptcy estate somehow seems acceptable to me given the strong argument for the program, the amounts involved, and the low likelihood of clawback litigation against small grantees in the very near term (there are bigger fish for the estate to go after first).
Hm, how could this interact with hypothetical clawbacks?
E.g.
your org has $0
your org receives $100 from FTXF, now your org has $100
your org spends $50 of that money, and then decides to stop
your org receive $10 from Nonlinear, now your org has $60
the clawback effort comes to your org and says “hey we need $100”. org say “I don’t have $100, I only have $50″
Does the clawback effort then say “No actually you have $60, we’re taking all $60” because of money fungibility?
I do think this is a good question, but on the other hand clawbacks will take months or years to happen. If an org expects to hold on to this money for that much time, emergency funding should probably be directed elsewhere.
I don’t really understand the specific situation your describing, and this is not legal advice, but I think in general one can say that if how much money “your org” has (wherever they get it from) shouldn’t really influence the size or validity of a hypothetical clawback claim, but it of course might influence if the claim is persued and how much money the claimer might actually be able to get from “your org”.
There is probably way too much in the air for anyone to answer your question, especially at that level of generality.
This is a opportunity for bridge funding, so presumably the grantee would have spent additional funds in the amount of the bridge grant that they would not have spent otherwise.
So the risk that Nonlinear’s generosity ends up in the bankruptcy estate somehow seems acceptable to me given the strong argument for the program, the amounts involved, and the low likelihood of clawback litigation against small grantees in the very near term (there are bigger fish for the estate to go after first).
No, that’s not how any of that works.