Jul 30 2010

What is a grant? What is a federal grant?

Category: Goverment

Answer:

Grants are funds that have been set aside or distributed by certain institutions for specific projects or activities. Typically the grantor will be the federal government, a foundation, a corporation, or a trust. The recipient will often be a nonprofit corporation, a school, a small business or an individual. They should not be categorized as a benefit but rather an award of financial assistance to help accomplish a set goal. Once awarded, grant money is often tracked to ensure the goal is accomplished and proper competence is used to manage the funds.

A federal grant is an award of money given by a US federal agency to aid and stimulate certain public programs, charities, and municipalities. The US government began stricter grant appropriations in 1977 with the Federal Grant and Cooperative Agreement Act. This act was setup to help prevent corruption when awarding grants.

Federal grants are often given to tax exempt organizations known as 501C3 corporations but grantees can also be schools, tribes, or other local municipalities. There are currently about 26 federal agencies that offer over one thousand grant programs per year. See if you are eligible for a federal grant here.


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