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?
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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 Government Grants Resources


Keystone Home Loan PLUS Program
The Pennsylvania Housing Finance Agency, otherwise termed as PHFA, is an independent agency established in year 1972 in an attempt to assist the provision of reasonable and affordable housing opportunities the elderly, persons and families of modest means, and people suffering from disabilities.


First Time Homebuyer Programs in Maine
The first time homebuyer programs of MaineHousing are all especially designed to contribute to the achievement of its primary agency mission which is to "assist Maine people to obtain and maintain decent, safe, affordable housing and services suitable to their unique housing needs."


Improving Health of People with Intellectual Disabilities Program
In keeping with this mission, the Centers for Disease Control and Prevention has constituted the Improving Health of People with Intellectual Disabilities Program in an attempt to financially support initiatives for people suffering from intellectual disabilities, thereby seeking to increase healthy behaviors and improve access to appropriate health services.


First Time Homebuyer Programs in Georgia
The state of Georgia offers a variety of programs to assist first time home buyers. The programs are offered primarily through the Georgia Department of Community Affairs.


Rural Policy Analysis Program
The Health Resources and Services Administration has recently established the Rural Policy Analysis Program, wherein it intends to solicit applications that support the research and analysis of respective policy affecting rural communities, so as to inform policy makers.


Core Clinical Centers for the Cardiothoracic Surgical Trials Network Program
In keeping with this mission, the National Institutes of Health has partnered with the Canadian Institutes of Health Research (CIHR), the National Heart, Lung, and Blood Institute (NHLBI), and the Institute of Circulatory and Respiratory Health (ICRH) to establish the Core Clinical Centers for the Cardiothoracic Surgical Trials Network Program.


2012 Scallop Research Set-Aside Program
The Department of Commerce, in cooperation with the National Marine Fisheries Service (NMFS) and the National Oceanic and Atmospheric Administration (NOAA), has recently established a project entitled 2012 Scallop Research Set-Aside Program.





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