The Different Types of Federal GrantsFederal grants are financial aids given and authorized by the United States federal government to non-government and non- profit organizations to assist projects and programs for the benefit of the public and the community. There are about 1,000 programs which can be sponsored or subsidized by federal agencies. When receiving a federal grant, it is required for the recipient to use the money provided to fulfill the projects they proposed when they applied for the grant. The money should be spent on the project and keep in mind that it is audited yearly. Upon the completion of the project, the unspent money is to be returned to the government. In certain fields, like in the arts or in education, being the recipient of a grant is prestigious and highly regarded award. As we have discussed in previous posts, the application process and getting the grant can be lengthy and very difficult. Simply because there are a lot of applications submitted every year for federal grants. Which is why getting the grant itself can be very important. The good thing about getting a grant is that it would help you and your organization complete the project that you proposed. How do you know if your project can be covered or can be granted by federal financial aid? First let's quickly go over the different types of federal grants. They can be divided into different categories. Here are 20 distinct categories:
There are also different types of federal grants based on how you acquired the federal grant: Direct grantsDirect federal grants are grants which you can apply directly from the federal government. The good thing about applying directly to the federal government is that there are no middle men. Less people involved means less red tape. You get to apply directly to the program officer overseeing the management of funds. You can easily get straight-forward information from the federal agency about the grant and will be informed about the entire process and requirements. But on the other hand, applying directly means more competition. There are a lot of grant applicants who apply directly to the federal government. Since there are 50 states, think about competing with different organizations from all of the different states. It is also more difficult to get grants through this process. Pass-through grantsPass through grants are grants won by your state and then passed through to different organizations. But since you only compete with organizations and groups from your own state there is a better chance of getting one. But in terms of amount, direct grants are considerably lower. The state also deducts a certain amount from each federal grant awarded to an organization. This is to cover the administration costs. As we talked about in the last issue there are also grants that can be classified into the following: Project grantsThis is the most common form of grants. Most of it goes to science and technology, arts, education, social services and health care projects.Formula grantsThis is a grant as stated by the law and based on the preset standard formula created by the state agency.Block grantsthese are grants also considered to be formula grants.Earmark grantsthese federal grants stated in the appropriations made by the Congress. They tend to be very controversial since there would be issues of paid political lobbyists who work to have the grant approved.Now that you know the different types of federal grants you will be able to narrow down your choices and have a better idea of how to get the money you need from the government. Remember you can apply for more than one grant at the same time and if your efforts are not successful the first time keep trying until you get the results you desire. It's a long process but it will be worth it!
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