A federal Government is a type Government that exists as a conglomerate of two or more interconnected governing entities with sharing of powers & responsibilities. On that note a Federal grant is not just simply a grant offered by a federal Government, it is in fact offered by a number of federal agencies within such a Government, to individuals or enterprises for a non-profit public service endeavor. A federal grant is also unique in the way that although it is the Governments money to be used for public service, it cannot be used for the Governments direct benefit.
Federal grants can be classified into five basic categories. Not all federal Governments offer all the types of grants but some do, nevertheless here are the five distinct types of federal Government grants for non-profit organizations:-
- Project based grants – These federal grants are awarded to specific projects & if you require such a grant then you have to compete against various other applicants. Commonly the types of projects for which these grants are awarded involve scientific research, any form of technological advancement or development, social & health care services.
- Formula based grants – This type of federal grant is unique to the US Government. Basically it is a US federal Government grant containing an exact pre-specified calculation or formula of sorts (hence the name) in the legislation responsible for the creation of that particular federal grant program. This calculation acts as a system with which potential recipients can approximate the amount of aid they can expect to get from the program, provided they qualify for the program in the first place.
- Category based grants – Category based federal grants are only applicable for non-profit projects with a very narrow & very much defined in terms of purpose. In this case the recipient of the grant must have an investment of his own in the project which is a predefined percentage of the total aid sanctioned to him.
- Block or Grouped grants – the term block grants simply refers to federal Government aid programs that combine various category based grants.
- Earmarked grants – These are US federal Government grant programs that are not awarded selectively through competition among applicants. In fact the awarding process of these programs has a lot of controversy surrounding it.
The first & the original Federal Government is considered to be the United States after it obtained independence from the British Empire. Other examples of Federal Government include Australia, Belgium, Brazil & Canada.