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Every year, government agencies around the country provide over $200 billion in grants … for specific services to local communities. Today, there are approximately 2,000 federal grant programs and over 40,000 state grant programs.
But before you get all excited about all that government money, you must really understand what government grants are and who is eligible to apply for them.
What Is A Government Grant ??
A (federal, state, local) government grant is the money awarded to a nonprofit organization (NPO) consistent with a contract between the government and the NPO – where the latter provides the service for which the former pays. (Grants, of course, do not have to be repaid.)
There is an application process for all government grants, and not all applicants qualify. Then, when you receive a grant, you are agreeing to carry out the activities described in your grant application and to adhere to all the conditions of the award. All such grants include various conditions, one of which is always that the grantee must provide periodic financial and program reports on their “contractual” activities.
There Are Two Kinds of Federal Grants.
For a Direct Grant a you apply directly to federal agency … and there is great competition for these, as you (often) compete with many other nonprofits for funding.
With a Pass-Through Grant, a state government receives federal grant money and then passes on these funds to local nonprofit organizations. There may not be a lot of competition for these, and they are likely to be smaller dollar amounts than direct grants.
Examples of Federal and State Government Grants:
• US Department of Education: grants to help prepare underserved
students to graduate high school and attend college.
• US Department of Health and Human Services: grants to
provide comprehensive sickle cell disease education, outreach,
and medical services.
• North Carolina Department of Environment and Natural Resources:
grants to municipalities to prepare for natural disasters such as floods
or hurricanes.
Who Is Eligible to Receive Federal and State Grants:
Typically, most grantees fall into the following categories:
• Government organizations: State and Local Governments,
Native American Tribal Governments.
• Educational organizations: school districts, private schools,
institutions of higher education.
• Public housing organizations: public housing authorities,
Indian housing authorities.
• Nonprofit organizations: nonprofit organizations having 501(c)(3)
status with the IRS, other kinds of NPOs. 392
To get an idea of the volume of federal grants, visit The Catalog of Federal and Domestic Assistance (www.cfda.gov), which lists every grant program administered by the federal government. For grant opportunities at the state level, visit your state government’s Internet site.
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Dr. Jayme Sokolow, the founder and president of The Development Source, Inc. helps nonprofit organizations develop proposals to government agencies, foundations, and corporations. He can be contacted at Jayme Sokolow.
