A revenue-generating project is a project that, once completed, brings the recipient money directly from users – for example, admission fees to a renovated site, parking charges, rental of premises, or the sale of services created from the grant. In such a case, the rules of EU funds do not allow the entire budget to be funded, because the project would otherwise be over-financed. So-called net revenue is calculated: operating costs and the costs of renewing equipment are deducted from the expected income over the reference period, and the result reduces the base from which the non-repayable financial contribution is calculated. For smaller projects, flat-rate percentages for the given sector are often used instead of the calculation. Revenue must also be monitored after the project ends, usually throughout the sustainability period – if it significantly exceeds the plan, the managing authority may retroactively reduce part of the contribution. It is therefore better to overestimate the revenue projection than to underestimate it.
See also: Cost-Benefit Analysis (CBA), Project sustainability, Eligible expenditure.
