What is a 'Government Grant'

A government grant is a financial award given by the federal, state or local government to an eligible grantee. Government grants are not expected to be repaid and do not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. Over 26 federal agencies administer more than 1,000 grant programs annually to provide funding for the arts, educational institutions, agricultural projects and more.

BREAKING DOWN 'Government Grant'

Government grants help fund ideas and projects providing public services and stimulating the economy. Grants support critical recovery initiatives, innovative research and other programs listed in the Catalog of Federal Domestic Assistance (CFDA).

Because government grants are funded by tax dollars, they require stringent compliance and reporting measures for ensuring the money is well-spent. Grants from the federal government are authorized and appropriated through bills passed by Congress and signed by the president. Grant authority varies among agencies. For example, the Small Business Administration (SBA) may distribute grants to nonprofit organizations in many of its counseling and training programs.

Grants.gov

Grants.gov is a free online source for researching and applying for over 1,000 federal grant programs with access to approximately $500 billion in awards annually. A grant proposal writer may register by completing a standard business profile on behalf of an individual, a nonprofit organization, a research institution or a similar entity. The writer also submits an authorized organization representative (AOR) application, supplies an e-business point of contact (POC) and completes a detailed application. The writer then has access to finding federal grant opportunities, applying for and tracking grants, and receiving grant email alerts, webinar schedules and tips from grantors.

Applying for a Government Grant

Government grants are extremely competitive. The paperwork is complex, and applicants must describe how being awarded money will benefit the community. Crafting a convincing proposal is so challenging that some freelance writers specialize in writing grant proposals.

Being Awarded a Government Grant

Receiving a government grant is a sign an individual or nonprofit organization has a significant, positive impact on the community. Other grantors view this as a sign they should provide grants for the project as well. When a nonprofit organization receives a government grant, the government is more likely to listen to views of the people involved with the organization and potentially help those people network with others in the same field or help with related issues.

After receiving a check for a government grant, detailed reports accounting for how the money is spent during the grant period and what accomplishments or failures occur must be documented and submitted according to various deadlines.

Example of a Government Grant

A government grant may fund economics programs supporting research for improving the understanding of the processes and institutions of the U.S. economy and of the world system. For example, an economics program may be designed for strengthening empirical and theoretical economic analysis, as well as the methods for rigorous research on economic behavior.

RELATED TERMS
  1. Options Backdating

    The process of granting an option that is dated prior to the ...
  2. Block Grant

    Money that is awarded, or granted, by a national government to ...
  3. Grant-In-Aid

    A transfer of money from the federal government to a state government, ...
  4. Grant

    The issuance of an award, such as a stock option, to key employees ...
  5. Pell Grant

    A program that awards money to eligible undergraduate and, in ...
  6. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
Related Articles
  1. Personal Finance

    Government Grants for Women-Owned Businesses

    Explore options for financial grants as a female business owner, and discover helpful resources for alternate ways of funding a business, including loans.
  2. Personal Finance

    Take Advantage of Small Business Grants for Women

    Discover five grant options that specifically target women-owned businesses, and learn how each of these grants can be of benefit to small business owners.
  3. Small Business

    4 Government Grants for Small Business Owners

    Discover common resources available to and used by small business owners and entrepreneurs in funding initiatives through government grants.
  4. Trading

    The Dangers Of Options Backdating

    This form of executive compensation can pose serious risks for investors.
  5. Trading

    Expensing Employee Stock Options: Is There A Better Way?

    In 2009, Senators Carl Levin and John McCain introduced a bill to stop the excessive deductions for ESOs. But is there another solution?
  6. Personal Finance

    A Quick Guide to How FAFSA Loans Work

    If you’re headed to college and want to know how to apply for financial aid, this is where you need to start.
  7. Personal Finance

    Tools for Finding the Right Loan or Grant for Your Small Business

    Learn more about some of the best tools, resources and organizations available to connect small business owners with business funding opportunities.
  8. Personal Finance

    College Savings Accounts: U.S. Vs. Canada

    Saving for your child's education is an important commitment. Find out what help is available to you in the U.S. and Canada.
  9. Small Business

    6 Ways To Fund Your Startup's First Year

    Pursue your entrepreneurial goals by picking the startup plan that's best for you.
  10. Small Business

    Government Subsidies For Business

    Many industries rely on government assistance in both good times and bad. What are the benefits of these programs, and how do they impact the consumer?
RELATED FAQS
  1. Should I apply for student loans if I haven't finished applying for scholarships ...

    Apply to a variety of financial help sources by submitting a Free Application for Federal Student Aid form, which will be ... Read Answer >>
  2. What is options backdating?

    Options backdating occurs when companies grant options to their executives that correspond to a day where there was a significantly ... Read Answer >>
  3. What are the most common sources of funds given in a financial aid award letter?

    Read this article to learn about the four most common sources of funding given in a financial aid award letter sent to a ... Read Answer >>
  4. Who is eligible to take out federal student loans?

    Fill out the Free Application for Federal Student Aid every year to determine eligibility for federal aid, including student ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center