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

Research Opportunities In Space and Earth Sciences (ROSES) 2011
The National Aeronautics and Space Administration has established the Research Opportunities in Space and Earth Sciences (ROSES) 2011 Program in order to support their agency's Science Mission Directorate (SMD).

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Small Business Grants - Support for Veterans
The SBA is dedicated to lend a hand to the service people in America and directly links with the Patriot Express Loan for veterans who desire to initiate their own business and want to start commercial activities. The SBA also plays a role in encouraging growth and job creation during the process, which is an indispensable part to support economic prosperity.

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Homebuyer Mortgage Program for First Time Homebuyers in Connecticut
The Connecticut Housing Finance Authority has been administering the Homebuyer Mortgage Program for First Time Homebuyers. The program is capable of offering home loans and below-market interest rates to first time homebuyers who reside in Connecticut and who are planning to acquire a property that is located in Connecticut.

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Eradication of HIV from CNS Reservoirs: Implications for Therapeutics Grant Program
The National Institutes of Health has collaborated with The National Institute of Mental Health (NIMH), The National Institute of Neurological Disorders and Stroke (NINDS), and The National Institute of Allergy and Infectious Disease (NIAID) in an attempt to establish the Eradication of HIV from CNS Reservoirs: Implications for Therapeutics Grant Program.

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National Science Foundation: Broadening Participation Research Initiation Grants in Engineering (BRIGE)
The BRIGE program hopes to increase the participation of novice investigators who are just starting their professional career in all fields of engineering research.

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What Are Opportunity Zones
Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.

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Enhancing Awareness of Transportation and Transportation Careers Program
The Federal Highway Administration has recently established the Enhancing Awareness of Transportation and Transportation Careers Program wherein it seeks to solicit applications from eligible entities who have the desire to utilize the advances in technology in the noble process of informing and teaching middle school, high school and community college students and faculties regarding transportation and transportation careers.

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