Most people are familiar with the need for early-stage companies to secure seed or angel funding to build and test innovative solutions. Recoverable grant capital can serve the same purpose for a nonprofit organization. For example – if a nonprofit is working to test a solution to address climate change, they need access to patient risk capital to help them innovate and try new ways to address the problem. If the organization fails, then the recoverable grant money reverts to a grant and the organizations keeps it. If they succeed – they have not only created an innovative solution to a problem, but also the potential for some or all of the funds to be returned for future grantmaking.