Grants are the Governments way of stimulating the economy and inspiring higher a achievements within society. Laws must first be written and adopted that clearly describe the objectives. Then grant programs are funded in accord with the particular industry of the economy or social progress to be targeted by the law.

Grants are not loans and require no assets or equity to obtain. Grants are basically and generally financial assistance money given back to the public by the Federal government to stimulate and strengthen a targeted leg of economy.

Example : The Government reviews data and hard the public outcry from farmers depicting a decline in Industry. This of course is read as being potentially an issue for manufacturers, food service and trickles down to affecting consumers pockets. So the Federal government decides to take action to prevent any decline in this Industry on a national level. A hearing is held by legislators who then discuss solutions. A bill is passed into law designed to combat this decline in in the Agricultural Industry. Guidelines are written and the amount of grant money is decided upon which will in turn be released to the U.S.D.A., since they are the Governmental Organization in charge of this specific industry. The U.S.D.A then must properly distribute this grant money throughout the industry according to the guidelines set by law.

Grant money therefore is only for the allotted amount pre approved by the federal government until all funds are exhausted. Then the grant is at the end of its “Life Cycle.”

The Life Cycle of a Grant

The grant has 3 phases to its life cycle :

Pre Award— Announcement of funding opportunities and application review all

Award— Award decisions are made and notifications are sent

Post Award— Implement intended use of funds, reporting and closure of grant. Grant is closed.

Types of Grants

Block Grants  — Given to states and local gov. entities who then determine the parameters for who can receive funding. These are almost always open for 1 reason or another, you must check with your local government and organizations to see if the available Grants are applicable to you at the time. Block Grants are pass through Grants that trickles down in that manner.

Discretionary Grants  — Are recipient specific meaning there need not be any grant in the table at the time but if your need for research, expansion, stimulus, etc. is significant enough, you can obtain the grant. You only have to form a proposal and send to the proper governing agency or organization and after review, if decided that the need is valid you will be approved to receive the funding.

Mandatory Grant —  These are based on bills signed into law that have a purpose aimed at Government entities who then must use the grant money as determined by written law. If you are a non government agency this grant money may only teach you by pass through. Meaning if the government entity involved decides or is persuaded that your organization can be of better public with some additional funding. They can fund you.

Formula Grants — Are distributed according to the set guidelines depicted in the law that the grant is designed for. This type of grant will have less distributer discretion. Formula grants must follow the strict parameters it is made for and will automatically go to all who for the criteria. The Medicaid Program  is a great example of a Formula Grant.  In this case, as long as regulations are followed the federal government will provide matching funds to state governments for all who fall under the scope of grant.

Cooperative Agreements — are exactly as sounds. These are similar to the other grant types in every way except that you can surely expect more involvement from federal employees in the performance of intended actions for the grant. With cooperative agreements you’ll be working more side by side with federal employees to help achieve the objective of the grant.

Applying for Grants

• Research – explore open grants on

• Match the criteria with your eligibility. Manny if the grants allow for immediate electronic apply online.

• Complete applications with extreme care to avoid denial. Seek guidance if necessary. Free consult at:

Writing Grant Proposals

• Show importance of why grant is needed and highlight the impact it will have on all who stands to benefit from the grant in detail.

• Be clear upfront on any and all challenges to the game accomplishing its goal. Present the solutions to every possible challenge you have foreseen. They will most surely seek out the holes in your grant.  You must assure them that you understand and have clear solutions therefore are well prepared

• Include a compilation of any real life/ real world data on events and case studies that pertains to the request you submit. Here you can show past successes and ways of implementing that worked to further prove your case. This should also detail the end results by statistics.

“Do not save what is left after spending, but.   spend what is left after saving.”
– –  Warren Buffet

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