A Definitive Guide to Government Grants

By Michael Sanibel of Entrepreneur.com



What is a Grant?
The U. S. government has been issuing grants for more than 50 years. A grant is a sum of money that never has to be paid back. Grants are not considered benefits or entitlements and are typically awarded to organizations whose goal is to support a specific public purpose.

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 may not be used as a funding source for the purchase of property for the government's benefit.

Grant funding is appropriated annually by Congress, and the programs are listed in the Catalog of Domestic Federal Assistance and the Federal Register. Each grant must include information on sponsoring government department, program title, total budget, application deadline, administrative contact and program summary.

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.

Who can qualify?
Most grants are awarded to government organizations at the state and local level, nonprofit organizations and academia. Both public and private educational providers are eligible, as are independent school systems and research institutions.

It's difficult, though not impossible, for an individual citizen to secure a government grant. 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.

Nonprofits seeking funding to directly advance important government goals have an even greater chance of receiving grants.