From The Art and Popular Culture Encyclopedia
Grants are funds dispersed by one party (Grant Makers), often a Government Department, Corporation, Foundation or Trust, to a recipient, often (but not always) a nonprofit entity, educational institution or business. Such application processes, generally require some form of "Grant Writing" often referred to as either a proposal or a submission. For more information regarding successful grant submissions see Grant Writing.
Many Grant Makers require Grant Seekers to have some form of tax-exempt status, be a registered nonprofit organization or a local government. Most grants are made to fund a specific project and require some level of reporting. The Grant Writing process involves an applicant submitting a proposal (or submission) to a potential funder, either on the applicant's own initiative or in response to a Request for Proposal from the funder. Other grants can be given to individuals, such as victims of natural disasters or individuals such as people who seek to open a small business. Intergovernmental grants facilitate:
- Tiered funding to other levels of government (state, local government) from various taxes collected at federal and state levels. These grants provide the main source of general revenue for lower levels of government. Examples of this are found in the US, Australia and Kenya.
- Program related funding (e.g. federal education funding for activities administered by state governments) are often recurring grants, providing the main source of revenue for programs.
- Project related funding (e.g. combined federal and state funding for a freeway) are very large grants negotiated at Government policy level. However smaller grants may be provided by a government agency (e.g. municipal government).
Project related funding to governments, business, communities and individuals is often arranged by application either in writing or on-line.