The US Government gives federal grants as a type of financial aid for US citizens. They use it to fulfill a purpose or a plan they have, to start a new business, go back to school or pay for rent and bills.
Grants can also be provided by non-profit organizations like non-profit foundations and charity organizations.
Grants can be unrestricted and the organization which gives the grant can let the receiver do whatever he has planned. But, grants can also be restricted and the receiver may be asked to do a specific thing or activity.
Categorical grants are restricted grants which the grant receiver has to use for a specific purpose. Almost 90% of all the grants are given as categorical grants and around 33% of these grants are seen as formula grants. Formula grants provide financial aid as the law dictates.
Project grants are those types of grants that help some project researches. Usually, applicants for these project grants have to possess some qualifications and characteristics in order to get a grant like this. The period of these grants is three years.
Block grants are given to state and local councils so that they can use them for general purposes.
Some type of block grants can be: block grant for the development of a community, block grant for drug abuse, alcohol and also mental health and block grant for the enforcement of local laws.
Examples of block grants are: Aid to Families with Dependent Children, Job Training Partnership Act and Work Incentive Program.
And examples of categorical grants can be: Reauthorization Act grants, Asbestos School Hazard Abatement Act and Asbestos School Hazard Abatement, Magnet Schools Assistance Program, Rural and Urban Forestry Assistance Programs under the Cooperative Forestry Assistance Act and Head Start Program.
There are around 21 categories of grants based on the more than 900 programs for grants which are provided by 26 government agencies.
- Business and Commerce
- Community Development
- Consumer Protection
- Disaster Prevention and Relief
- Education Regional Development
- Employment, Labor, and Training
- Environmental Quality
- Food and Nutrition
- Information and Statistics
- Law, Justice, and Legal Services
- Natural Resources
- Science and Technology
- Social Services and Income Security
Whatever the type of grant it is you are applying for, you’ll always have to submit a special proposal. The proposal has to contain all the information about your plan on spending the grant or the money, and everything else that can be asked from you. Many times, the grant givers may seek from the applicants to be a part of some kind of a non-profit organization or possess a tax-exempt status.