Government
grants are assistance by government in cash or kind to an enterprise for past
or future compliance with certain conditions. They exclude
those forms of
government assistance which
cannot reasonably have a
value placed upon them
and transactions with government which
cannot be distinguished
from the normal trading transactions of the enterprise. Grants
are not benefits or entitlements.
Types of Grants
There
are many types of grants. Some of the main among them are as follows:
1. Business Grants – The grants offered by the government for
business purposes are called government
business grants.
2. Education Grants – The
grants offered by the government for education purposes are education grants.
For example grants for college,
grants for school, and grants for universities.
3. Agriculture Grant - The
grants offered by the government for the enhancement of agricultural activities
are called agricultural grants.
4. Health Grant – The grants
offered for the health services are called heath grants.
Who is eligible for grant?
Government
grants do not offer money for personal financial assistance or debt. There are
many groups of organizations that are eligible to apply for grants. They are
1. Government Organizations
– State governments or local governments are eligible for grants.
2. Education Organization-
Independent school districts, Public and State Controlled Institutions of
Higher Education and Private Institutions of Higher Education are eligible for
grants.
3. Public Housing
Organizations – Public housing authorities and Indian housing authorities are
eligible for grants.
4. Small Business
Organizations - Small business loans and small business grants may be awarded to companies that meet the size
standards that the U.S. Small Business Administration (SBA) has established for
most industries in the economy. The most common size standards are as follows:
·
500 employees for most manufacturing and mining industries.
·
100 employees for all wholesale trade industries.
·
$6 million for most retail and service industries.
·
$28.5 million for most general & heavy construction
industries.
·
$12 million for all special trade contractors.
·
$0.75 million for most agricultural industries.
5. Individuals - An
individual submits a grant on their behalf, and not on behalf of a company,
organization, institution, or government. Individuals sign the grant
application and its associated certifications and assurances that are necessary
to fulfill the requirements of the application process. So, if you register as
an Individual, you will only be able to apply to grant opportunities that are
open to individuals. An individual cannot submit a grant application to a grant
opportunity that is just open to organizations.
Points to consider while applying for grants – There are some points
which should be considered before applying for grant. They are
1. Describe the
criteria for success.
2. Explain
what will occur as a result of the proposed activities – be clear and
concise. At this juncture, identify and describe both the short and
long-term effects and/or benefits.
3. The
most recent financial statement from most recently completed year, showing
actual expenses. A balance sheet or statement of income and expenses is
required.
4. Organization’s
budget for current year, including income and expenses.
5. A
non-profit submitting a grant application will need to provide a list of
corporations and foundations it is seeking additional funding support, with
dollar amounts, indicating what sources are committed or pending.
