---
kind: "section"
citation: "2 C.F.R. § 300.218"
title: "2"
number: "300.218"
heading: "Special provisions for awards to for-profit organizations as recipients."
url: "https://uscodex.org/cfr/2/300.218"
---

# §300.218. Special provisions for awards to for-profit organizations as recipients.

- (a) **For-profit organizations.** This section contains provisions that apply to awards to for-profit organizations. These provisions are in addition to other applicable provisions of this part, or they make exceptions from other provisions of this part for awards to for-profit organizations.
- (b) **Prohibition against profit.** Except for awards under the Small Business Innovation Research (SBIR) and Small Business Technology Transfer Research (STTR) programs ([15 U.S.C. 638](/usc/15/638.md)), no HHS funds may be paid as profit to any recipient even if the recipient is a for-profit organization. Profit is any amount in excess of allowable direct and indirect costs.
- (c) **Program income.** Except for grants for research, program income earned by a for-profit organization may not be used to further eligible project or program objectives except in the SBIR and STTR programs.
- (d) **For-profit organization audits.**
  - (1) For-profit organizations that receive awards (including for-profit hospitals) have two options regarding audits:
    - (i) A financial related audit of a particular award in accordance with GAGAS, in those cases where the for-profit organization receives awards under only one HHS program; or, if awards are received under multiple HHS programs, a financial related audit of all awards in accordance with GAGAS; or
    - (ii) **An audit that meets the requirements contained in 2 CFR 200, subpart F.**
  - (2) For-profit organizations that receive annual awards totaling less than the audit requirement threshold in [subpart F](/cfr/2/subpartF.md) are exempt from HHS audit requirements for that year, but records must be available for review by appropriate officials of Federal agencies or the GAO. (See [§ 200.501](/cfr/2/200.501.md)).
- (e) **Applicability.** The provisions of [§ 200.315(e)](/cfr/2/200.315.md?p=e) do not apply to for-profit organizations.

## Notes

### Authority

Authority: 5 U.S.C. 301, 2 CFR part 200.

### Source

Source: 89 FR 80061, Oct. 2, 2024, unless otherwise noted.