Let's say, you form an
organization, a nonprofit foundation that aims to provide charity
relief to, let's say, the poor community in your area. You then
conceptualize a feeding program for the community. Yet with all the
resources that you currently have at hand, you still have a shortage
of funds, and the donation drive is still going poorly. So what do
you do?
You then ask the government for funding. This is known as a federal grant.
In the United States, a federal grant is a monetary award or aid, issued by the government out of the general federal revenue, for the recipient to carry out a project or charitable work. Usually, the project can encompass as small as a local town, to as big as a state, and the recipient could be a nonprofit charity organization, the local government, an educational institution, a business, even an individual (though this is rare).
You then ask the government for funding. This is known as a federal grant.
In the United States, a federal grant is a monetary award or aid, issued by the government out of the general federal revenue, for the recipient to carry out a project or charitable work. Usually, the project can encompass as small as a local town, to as big as a state, and the recipient could be a nonprofit charity organization, the local government, an educational institution, a business, even an individual (though this is rare).
As defined in Title
31 Section 6304 of the U.S. Code, a Federal Grant is...
"...legal instrument reflecting the relationship between the United States Government and a State, a local government, or other entity when...
"...legal instrument reflecting the relationship between the United States Government and a State, a local government, or other entity when...
...the
principal purpose of the relationship is to transfer a thing of value
to the State or local government or other recipient to carry out a
public purpose of support or stimulation authorized by a law of the
United States instead of acquiring (by purchase, lease, or barter)
property or services for the direct benefit or use of the United
States Government; and..
...substantial
involvement is not expected between the executive agency and the
State, local government, or other recipient when carrying out the
activity contemplated in the agreement."
This
is known as the Federal
Grant and Cooperative Agreement Act of 1977.
Getting
the Grant
Getting
funding from a federal grant has requirements, which, if not met,
will make the recipient face legal action. The project must be within
a state and county government, or to a nonprofit organization, which
complies with the 501C3 tax-exemption under the Internal Revenue
Service tax code. Once the project is compliant, the representative
can then do some form of "Grant Writing", which is a
proposal to the government. Individuals and small business are not
eligible for grants, though there are other ways for them to pursue
federal funding, like state development agencies. Grants are more
commonly awarded to wide-scale projects, like natural disasters,
feeding program, infrastructure, etc.
Types
of Federal Grants
There
are several types of federal grants. A block
grant is awarded to a local
or state government for use on a more general purpose. Likewise, acategorical grant
is given for the purpose of funding a specific local project, like a
health program. A project
grant is funding received
for the purpose of research, usually related to medicine, space
programs, or so. Finally, there are earmark
grants which are set apart
by some members of the U.S. Congress for other projects, though are
highly protested because it can be used for a project which benefits
the personal interests of certain individuals or agencies.
Author
Bio:
John
Lewis is financial lead at "http://www.fundinggrants.com.au/",Funding
Grants is
Private Funded Company, who provides grants Australia-Wide to both
business and individuals. It specializes in fast finance lending
mainly using online services which is faster easier and safer.
