What is "Program Income" in the context of grants management?

Program income refers to the income generated from activities funded by a grant, such as fees for services, sales of products, or income produced from the use of grant-funded resources. This type of income is significant because it can be reinvested into the program to further its objectives or cover allowable costs related to the grant. The concept is critical in grants management as it allows for the sustainability of programs by providing additional funding, and it often must be reported and managed according to specific regulations set forth by the funding agency.

The other options do have distinct meanings in the context of grants management. Revenue generated from selling assets purchased with grant funds would be considered a different category of funding that doesn't reflect ongoing operational programs. Funds allotted for administrative costs refer to budget allocations specifically for overhead and administrative expenses, not income generated from program activities. Lastly, grants from local government agencies represent external funding sources rather than income generated by the program itself. Therefore, the definition of program income is uniquely tied to the income derived from the grant-funded initiatives, making the selection of income from grant-funded activities that can be reinvested the appropriate choice.