A third party is a private entity or individual outside the federal award whose actions caused damage or increased costs.
<table class="pt-table"><thead><tr><th>Source of funds</th><th>FEMA treatment</th></tr></thead><tbody><tr><td>Non-federal grant or cash donation for the same purpose as eligible work</td><td>Use toward your non-federal share; otherwise, or for any excess, FEMA reduces eligible costs</td></tr><tr><td>Non-federal grant or donation for non-specific purposes</td><td>Not a duplication; may go to your share, and any excess to ineligible work</td></tr><tr><td>Non-federal grant or donation for an ineligible purpose</td><td>Can’t be applied to your non-federal share</td></tr><tr><td>Third-party liability recovery</td><td>Pursue in good faith; FEMA reduces by the amount recovered for eligible losses</td></tr><tr><td>Another federal agency’s funds for the same purpose</td><td>A duplication; FEMA cannot fund it</td></tr><tr><td>Other FEMA programs (Individual Assistance, HMGP)</td><td>You must certify no work or cost is covered by another source</td></tr></tbody></table>
Grant agreements and donor letters showing each fund’s purpose, settlement documents for third-party recoveries, and your certification of no duplicate funding.
Watch out · Govstar practitioner advice
Ask donors to state the purpose in writing. An unrestricted gift helps your cost share; a gift earmarked for eligible repairs may simply reduce FEMA’s share.