What Are Federal Grants-in-Aid?
Federal grants provide hundreds of dollars to individuals and organizations with financial need, economic hardships or well-conceived projects. Grant funds are available for community gardens, child-care expenses, college classes, small-business development and more. Thousands of grants cover hundreds of diverse projects and academic goals. Start with a clear understanding of federal grants and the grant application process.
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Federal Grant Funds
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The federal government allocates funds to specific areas of research, development and education. These funds are distributed as grants to states, counties, cities, non-profit organizations, small businesses and individuals for designated purposes. Funds from federal agencies may also be given to state or local agencies to assist individuals. Federal grants to students, for example, are awarded to college students through city college or state university financial aid offices. Federal grants-in-aid provide free money to qualified applicants without repayment.
Need-Based Grants
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Need-based grant programs require an applicant to meet certain financial criteria. A need-based grant can be awarded to an individual in two ways: To the neediest applicants first, or to all people who fall below a certain level of monthly or annual income equally. Federally funded state child care grants might be available to all families of four with less than $2,000 monthly income; however, awards first might be granted to families of four that make less than $1,200 a month. You must often provide evidence of income, paycheck stubs, banking statements or tax returns. When the qualifying income level varies according to the size of the household, birth certificates for all household members may be requested to prove family size.
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Academic-Based Grants
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Academic-based grants consider a student's grade-point average and field of study in award distribution. A 4.0 grade-point average or higher will not guarantee top consideration for a government grant, absent financial need or economic hardship. Federal grants in academia are designated funds to assist people who lack adequate resources to attend an academic program, complete a training course or pursue an educational goal. An academic-based grant balances need and merit.
Project-Based Grants
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Project-based grants can be awarded directly from the federal government, or indirectly through non-profit organizations. For instance, grants may be available to start a small business, develop a community garden, provide a mentor program, remodel a day care center or create an art installation. Project-based grant guidelines list the kind of projects accepted, the amount of funding available and the time to complete the project. A specific project must be designed, a detailed budget included, and a deadline for completion established.
Grant Applications and Eligibility
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A grant application can be as simple as a 500-word essay on why you need money, or as complicated as a 25-page form with several statistical reports for a city redevelopment project. The grant can cover one year or it might be renewable for up to four years.
The grant guidelines state clearly who qualifies, what you need to qualify, when to apply, where to apply, and how to complete the application. Grants require detailed information about your qualifications, your financial situation and your project or educational program. Grant applications must be legible and provide all the requested information and supporting documentation. You must submit the grant application on time for consideration.
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