Grants are also used as a method for funding research and development of technology-based products and services for the federal government. Nonprofits seeking funding to directly advance important government goals have an even greater chance of receiving grants. The chances of success are greater if you have a small business engaged in activities that benefit the general public, and if your services fill a void not being filled in some other way. It's difficult, though not impossible, for an individual citizen to secure a government grant. Both public and private educational providers are eligible, as are independent school systems and research institutions. Most grants are awarded to government organizations at the state and local level, nonprofit organizations and academia. Grants are administered by several cabinet-level agencies, including the departments of Housing and Urban Development, Health and Human Services, Education, Transportation and Homeland Security. Each grant must include information on sponsoring government department, program title, total budget, application deadline, administrative contact and program summary. Grant funding is appropriated annually by Congress, and the programs are listed in the Catalog of Domestic Federal Assistance and the Federal Register. Grants may not be used as a funding source for the purchase of property for the government's benefit. Such grants provide a mechanism for the government to provide investments in selected areas of the economy, including improvements in the education system and targeted development of public facilities and infrastructure. Grants are not considered benefits or entitlements and are typically awarded to organizations whose goal is to support a specific public purpose. A grant is a sum of money that never has to be paid back. government has been issuing grants for more than 50 years. You may be able to count your administrative, delivery or marketing costs as a matching amount, or you may be required to show that you have already the funds on hand as a result of donations or other fundraising activity.The U. At some point, there will need to be a report made on the use of the funds, and any portion that the grantor deems to have been used improperly may have to be repaid.įree grant money may also require a matching component.
#Government grant monies free
If the grant application or the RFP does not provide for the free grant money to be used for administrative costs (and some do, particularly government grants), you must be very careful not to co-mingle funds or report the administrative costs as a permitted use of the free grant funding. One circumstance that may require repayment of free grant funding would be in the event of misuse of the grant funds, or failure to complete all of the goals of the program that was funded by the free grant. There is a difference between a disaster mitigation loan with low interest and long repayment terms, and truly free grants. They are considered a normal cost of doing business, not a program cost.įree grants should not be confused with low-interest loans. These administrative costs typically cannot be included in the use of the grant funds. Large grants may require salaries or fees for an administrator to keep track of costs associated with delivery of goods or services provided by the free grant. There may be salaries for employees who write the grant application, or fees for a contracted grant writer. That is not to say that free grants are free of any costs. There are no filing fees, taxes to be paid, or licenses to purchase to apply for grants. By definition, grants do not generally require repayment, and are thus “free money”.