WORKING WITH DG ECHO AS AN NGO PARTNER | 2021 - 2027
The obligation to transfer or donate remains valid until the equipment has been fully depreciated.  Therefore, if at the end of the action to which the transfer was made the equipment is not fully depreciated and donation or transfer are not possible anymore, ECHO could either recover the remaining value according to the applicable depreciation rules, or, if justified, grant the partner to keep the equipment.
Transfer to another ECHO-funded Action is only possible if the Action is implemented by the Partner that intends to transfer the remaining supplies. This rule allows ECHO to have a direct control over the end use of the equipment and safeguard sound financial management of humanitarian aid funds.
Transfer to an ECHO-funded action implemented by another partner is possible.
Goods may be transferred only once. This means that goods must be fully consumed by the next action they are transferred to. If transfer to another ongoing action is not possible, the beneficiaries can — after the end of the action — transfer the equipment or goods to the final recipients, local non-profit organisations, international non-profit organisations, international organisations, or local authorities, if agreed by the granting authority. Under the MGA the distinction between donation and transfer do not exist anymore.
In the MGA, reimbursement of full price of equipment and goods is the rule, with the  obligation to transfer or donate them after the end of the action, unless exempted by
DG ECHO. If transfer to another ongoing action is not possible and if agreed by DG ECHO,  the Partner can transfer or donate the equipment or goods to the final recipients,  non-profit organisations, international non-profit organisations, international
organisations, or local authorities. If not, only the depreciation costs are eligible (regardless of the fact the Commission is the single largest donor of the action).
Low value equipment (equipment with a value below EUR 1000, instead of previous EUR 750 per item) is exempted from the obligation of transfer or donation.
If the cost of the item is between EUR 1001 and EUR 2500 per item, the exception applies  if the total costs of the items does not exceed EUR 15 000. Remaining goods at the end of the Action should, ideally, be distributed by requesting a  no cost extension of the Action. If this is not possible and the results of the Action have  been achieved, remaining goods not exceeding 20% of goods purchased during the  action can be considered as eligible and need to be transferred (or donated, if agreed  by DG ECHO). In case the value per category is less than 1,000 EUR, remaining goods are excluded from the obligation of transfer or donation.