What does "no-cost extension" mean in grant management?

In grant management, a "no-cost extension" refers to the ability to extend the project timeline without additional funding. This allows grant recipients to complete their project activities when they need more time to fulfill their objectives, ensuring that the project can reach its goals without requiring more financial resources from the grantor.

This practice is particularly useful when unforeseen circumstances, such as delays in project execution or the need for additional time to complete specific activities, arise. By allowing the extension without extra funds, both the grantor and the recipient can benefit, as it preserves the integrity of the project and supports the judicious use of already allocated resources.

Other options discuss scenarios that do not align with the concept of a no-cost extension. For instance, extending the grant period with additional funding implies that new financial resources are being introduced, which is not the essence of a no-cost extension. Ending the project early to save costs does not reflect the intent of continuing project activities, and reducing the scope of the project would typically involve a decrease in the project’s planned outcomes, rather than extending its duration. Thus, option B accurately captures the true meaning and purpose of a no-cost extension in grant management.