New guidance on Good Practices for Financial Support to Third Parties (FSTP)
Financial Support to Third Parties (FSTP), or cascade funding, allows EU grant beneficiaries to redistribute funds through their own calls, provided the original EU call permits it. Often featured in Horizon Europe Missions calls, FSTP helps extend EU support to smaller projects and consortia that may lack the capacity to apply directly for EU funding. Beneficiaries leverage their expertise and infrastructure to manage this redistribution.
While FSTP enhances reach and impact, it also introduces administrative and financial complexities. This guidance reviews current FSTP practices, outlining key opportunities and challenges to help stakeholders better understand and implement this funding mechanism, by outlining common pitfalls, best practices and useful templates.
European Commission: Good practices for implementing FSTP in EU grants (2025)
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