Government Grants Definition - Benefits of Federal Grants

Government Grants Definition | What is a Grant for College 

The United States government offers federal grants to its citizens as an economic aid as a financial aid for assisting people with low income, thin bank balance and below low economic conditions to meet with their crisis and lead a satisfactory livelihood. Every year the government sets aside billions of dollars to offer as grants programs to individuals, families, organizations, children, single mothers and others.

These grants however, require multiple eligibility criteria and a regulated process for application. The federal funds can be availed from varied government agencies, state governments and local government agencies which are all regulated by the Federal Grant and Cooperative Agreement Act of 1977. Analyze the benefits of these grants that have been tailored for your need and apply for them with the right credentials. 

Types of Grants by the Government

The grants allotted by the government can be categorized in 5 types on the basis of the purposes it solves and the objectives it fulfils:

Categorical grants are spent for specific defined purpose and recipients have to match a portion of the federal fund. Almost 90% of federal aid dollars are used for this grant

Project grants are given to certain qualified individuals for research projects like medical purpose, with a normal duration of three years

Formula grants provide funds in accordance with law

Block grants are provide by the federal government for general purpose use to state or local governments

Earmark grants are provided by the US congress to a very limited number of individuals or entities

Benefits of Government or Federal Grants

There are plethora of benefits to avail from Federal grants as these are legalized, authorized and registered funds allocated for the improvement of lives and the community as a whole. Though the application process can be hassling, but these are certified and approved by the government. The lists of benefits to be noted are:

·      There are almost 1000 grants catering to every sector of life such as arts, agriculture, business, community development, education, food and nutrition, housing, health, law & justice, humanities, science and technology, transportation etc.

·      It offers estimated funding with certain number of awards

·   These are fully documented and legitimate funds by the government, hence less chances of deception

·   It becomes easier for applicants receiving federal grants to avail monetary aid from other government and private sources

·    Organizations getting federal grants have access to huge credibility and can also attain wide public exposure

·      No extra charges are required to apply for these grants

·   These are multiple eligibility criteria hence, only people or organizations with the accurate documents and details stand the chances to qualify and not any random citizen or party

·  All the procedures are completely streamlined. The funds are allocated to universities, researchers, nonprofit associations, city, state and local agencies who subsequently allot the money on need basis

·    The grants are need based offered to low income people to meet with their regular needs of life. These are non taxable, non repayable and is interest free. Even with a bad credit history you can avail them.

However, the fund allocation follows several intricate procedures, demands accurate credentials, lots of paper work and involves multiple legal processes hence, making it a difficult to qualify for them. 

Over the years, these non repayable grants and loans have helped sustain thousands of lives, enabling a balanced economy and fulfilled dreams. As of 2014, over 1000 grants programs, catering to diverse categories of social life, are offered by almost 26 federal grant making agencies. Besides these, many private nonprofit organizations and charitable organizations also extend a helping hand in allocating funds.