How Does a Government Grant Work?

Grants Are Not Free

Even in an economic downturn, the government gives away money. It isn't exactly free, and not everyone can get it. But the government does grant money to people who qualify. This article will explain how a government grant works and what is required to get one.

According to grant.gov, a government grant is a sum of money given to a person by the government in order to stimulate the economy or finance a person's public purpose of support. It isn't a loan or a benefit automatically awarded to American citizens. There is usually a specific purpose for the grant other than just handing someone cash. Grants are awarded to people in 21 different categories, from agricultural to social services. In all, there are 26 grant-making agencies with over 1,000 grants available. The Grants.gov newsletter states that over 158,000 submissions were received in 2008.

Applying for a federal grant is an involved process, though it isn't very difficult. First, you must verify that you qualify for a specific grant by exploring the different categories and the detailed requirements for grants given in those categories. For example, applicants who want the grant for Campus Suicide Preventions must either work at a campus setting that hosts programs specific to campus suicide preventions.

Once you've seen the grant you want, you must register with grants.gov. From there, you can click on the specific grant and fill out the grant application form. Grants.gov will review the package for general requirements, such as completed mailing addresses and specific personal information. The application is sent to the grantor, who will then review it to see if it meets the specific criteria. If your grant application meets the requirements and beats out the competition, the grantor will notify you of the award. The length of time between an accepted application by the grantor and the award can vary from grant to grant. Grants.gov has nothing to do with this portion.

Grant fraud is an issue that is dealt with seriously by the government. If you receive an award and do not use it for the intended purpose, you could face serious fines and jail time. The Department of Commerce reported that in 2008, one person received 15 months of prison and house arrest and paid $120,000 in restitution for spending grant money on personal needs outside of the grant requirements. Remember, grant money isn't free. Use it as intended.