Monday, August 2, 2010

Who Gets All That Government Grant Money?

You may have heard that the government gives out free money in the form of grants. Yes, this really does happen. Unfortunately, there is a lot of misinformation circulating about these government grants. Yes, these grants do not need to be repaid. However, they cannot be used for any purpose. Those who win government grants must follow the rules and restrictions put forth by the grantor. Also, government grants are not just handed out to anyone. To determine if you have a chance of winning a government grant, continue reading on for information pertaining to the most common recipients.

The most common question asked about government grants is “are there personal grants available?” These grants are classified as grants for individuals. Yes, they do exist, but they are very rare and hard to come across. As previously stated, government grants cannot be used for any purpose. It all depends on the grantor in question. For example, the Center for Disease Control is likely to fund grants that study medical related issues, such as autism, alcoholism, sexually transmitted diseases, and so forth. It is possible to find government grants for homeowners who want to conserve energy or water, as well as grants for senior citizens to repair their home after a natural disaster, but that is about it. It will not hurt to look, but if you are an individual looking for free money, don’t get too excited.

The most common recipients of government grants are government organizations. These may include state, county, town, city, and village governments. These government groups are known for seeking grants that make new construction possible, curb youth violence, and so forth. Also under the category of government organizations, you will find Native American Tribal Governments. These fall into two categories, those recognized by the United States government and those not. Native Americans seek out these grants for the same reason others do; they want to improve their community and reduce operating costs.

Educational organizations are another common recipient of government grants. Falling into this category are independent school districts, public and state controlled higher education institutions, and private higher education institutions. These types of organizations qualify and receive a large number of grants. As with government organizations, they can receive government grants to improve or start new construction, offer new services, reduce violence, and offer new classes. It is common for colleges and universities to work with health and technology based companies, which also provide grants.

Non-profit organizations are also common recipients of government grants. There are two types of non-profit organizations. Those that are recognized by the IRS and those that are not. Regardless, both are eligible to receive many grants. As for why non-profit organizations are common recipients of grants, their goal is to help the American people. They do so without turning a profit. This is the same goal that many grantors have. The Center for Disease Control may award a grant that focuses on AIDS research and monitoring to a non-profit organization that helps individuals suffering from AIDS and their family.

Finally, there are small businesses. To be classified as a small business, certain restrictions must be met. A small business should have a limited number of employees and make under a certain dollar amount. It is rare to find a government grant to start a business. Typically, grants are awarded to small businesses that have a direct impact on the community. For example, a privately run doctor’s office that provides affordable care to low-income families, may qualify for grants to keep the business financially afloat and stable.

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