PRDV009: Writing Grant Proposals

In the United States, federal grants are economic aid issued by the United States government out of the general federal revenue. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.

Grants are federal assistance to individuals, benefits, or entitlements. They are not used to acquire property or services for the federal government's direct benefit.

Grants may also be issued by private non-profit organizations such as foundations, not-for-profit corporations, or charitable trusts, which are collectively called charities.

Outside the United States, grants, subventions, or subsidies are used in a similar fashion by government or private charities to subsidize programs and projects that fit within the funding criteria of the grant-giving entity or donor. Grants can be unrestricted, to be used by the recipient in any fashion within the perimeter of the recipient organization's activities, or they may be restricted to a specific purpose by the benefactor.

 

American Definition

Federal grants are defined and governed by the Federal Grant and Cooperative Agreement Act of 1977, as incorporated in Title 31 Section 6304 of the U.S. Code. A federal grant is a:

The law requires a cooperative agreement when an awarding agency expects to be substantially involved in a project (beyond routine monitoring and technical assistance). The law also requires a federal contract when the government procures goods or services for its direct benefit and not for a broader public purpose.

 

Types of Grants

• Categorical grants may be spent only for narrowly defined purposes, and recipients often must match a portion of the federal funds. 33% of categorical grants are considered to be formula grants. About 90% of federal aid dollars are spent on categorical grants.
  
  
  • Project grants are grants the government gives to fund research projects, such as a research project for medical purposes. An individual must acquire certain qualifications before applying for such a grant, and the normal duration for project grants is three years.
    
    
  • Formula grants provide funds as dictated by law.
    
    
• Block grants are large grants provided by the federal government to state or local governments for general purposes.
  
  
• Earmark grants are explicitly specified in the appropriations of the U.S. Congress. They are not competitively awarded and have become highly controversial because of the heavy involvement of paid political lobbyists in securing them. In FY1996 appropriations, the Congressional Research Service found 3,023 earmarks totaling $19.5 billion, while in FY2006, it found 12,852 earmarks totaling $64 billion.

There are over 900 grant programs offered by the 26 federal grant-making agencies. These programs fall into 20 categories:

Information Provided in Grant Applications

Award information in grants generally includes:

• Estimated funding
• Expected number of awards
• Anticipated award size
• Period of performance

Eligibility information includes:

• Eligible applicants
• Cost-sharing

 

Criticism

Federal and state grants frequently receive criticism due to what are perceived to be excessive regulations and not including opportunities for small businesses and often giving more money per person to smaller states regardless of population or need. These criticisms include problems of overlap, duplication, excessive categorization, insufficient information, varying requirements, arbitrary federal decision-making, and grantsmanship (a funding bias toward entities most familiar with how to exploit the system rather than to those most in need).

 

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Source: Wikipedia, https://en.wikipedia.org/wiki/Federal_grants_in_the_United_States
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