Free Money Through Grants: Fact or Fiction?

 by: Rebecca Game

It's posted all over the Internet. You hear it on the radio, and see it on television. The United States government is giving away free money in the form of federal grants. While it's true that the government does indeed award $400 billion annually through its 26 federal entities, the statement of free money through the government doesn't exactly pinpoint the definition of a federal grant.

A grant isn't a gift or a free-for-all giveaway. It also doesn't mean that if you've been awarded a grant, you've won the lottery. According to American Government and Politics by Jay M. Shafritz, a grant is "a form of gift that entails certain obligations on the part of the grantee and expectations on the part of the grantor." The key word in this definition of the word is obligations. Getting a government grant will get you an unbelievable amount of obligations, and not fulfilling your obligations will, in turn, grant you legal problems.

The majority of federal grants that are awarded are the farthest thing from being considered free money. Grants are most often awarded to organizations planning major projects to benefit a community. It could include money to be used for repaving streets in a city. A grant could also be awarded for a nonprofit organization featuring an art exhibit or musical performance. Grants are also awarded for technological research, conservation, and flood control projects. While there are other sources that are awarded grant funding, in general, the free money aspect is lost, and individuals, in general, are not qualified for most grants other than those used for educational purposes such as to pay tuition bills for higher education. Businesses can also tap into the federal grant program, but only by meeting strict criteria through the government agency offering the grant, such as if grant funding is available for research in a particular area that is of specialty to that business.

Once the free money is provided through the grant, the organization that has been awarded the free money must keep careful track of all project expenditures. Organizations that are awarded free money must be prepared for detailed audits, which will be conducted by the Federal government annually or more often. Any money not spent and accounted for goes back to the United States Treasury, and is not extra free money for the organization. Detailed program goals must be developed, approved, and completed by the organization exactly as specified in the grant application without exception. Any unforeseen project changes that occur along the way must receive prior approval by the government agency that awarded the grant. All project phases must be completed as planned, and even more importantly, completed successfully and on time.
  (continued...)

Free Money Through Grants: Fact or Fiction?
  Page 2

About The Author Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find business loans. Visit her site: Loans for Women. http://www.digital-women.com

Additional Resources

category - Applying for a Grant

Grants from the Federal Executive Branch of the Government
In this article, you will learn about the different departments that comprise the Executive branch of the government and how these departments can serve you.

---

National Aeronautics and Space Administration: Research Opportunities in Space and Earth Sciences
NASA has recently established the Research Opportunities in Space and Earth Sciences (ROSES) program for the year 2011, which encourages interested institutions to submit proposals that involve ground-based research and technology investigations that seek to comprehend naturally occurring phenomena, both in the Earth and in space.

---

Grants and Loans From The Department of Energy
In 1977, the President of the United States of America signed the The Department of Energy Organization Act which mandated the creation of the United States Department of Energy, which more commonly known as DOE.

---

Grants from the US State Department for Media Training Workshops in Tunisia
The office of the US Mission to Tunisia, which is under the DoS, is seeking applications for the Media Training Workshops program for the Tunisian people through the The US Embassy in Tunis, Tunisia.

---