A Definitive Guide to Government Grants

Funding is available in a variety of categories that include the following: science and technology, energy, transportation, health, agriculture, food and nutrition, environment, natural resources, housing, regional and community development, business and commerce, social services, education, legal services, cultural affairs, employment and training, consumer protection, and disaster prevention and relief.

Advantages and disadvantages of grants
Since a grant is not a loan that requires repayment, good credit is not needed. It is a form of gift that imposes no interest or tax implications on the recipient.

If large sums of money are needed for a specific project, grants may be one of few available sources of financing, especially during challenging economic times. For organizations trying to raise money from other sources, an approved grant can provide an enhanced level of exposure and credibility that will aid their private fundraising efforts.

There is no limit to the number of grants you can apply for in a given year. However, in some cases you may be required to fund the project from your own resources before the government provides reimbursement for your expenses.

The preparation of a grant request is a complex undertaking often left to professional proposal writers with relevant training and experience. The completion of a successful proposal involves planning, research and the ability to navigate through a maze of detailed requirements and specifications.

While the money may be "free," grants come with strings attached that obligate the recipient to perform in accordance with strict spending and accounting rules and regulations. Additionally, grants are subject to comprehensive government oversight and audits conducted at least once per year.

All grants require the presentation of a business plan that includes a budget, scheduled milestones and project goals that must be completed within the established parameters. It's common for those who receive grants to hire an accountant or business professional to assist with preparation of the financial reports.