What is a grant and how does it work? – Government Grants For School

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In a federal grant, organizations can receive money for some or all of their programming and services. The organization must get a certain number of applications for each grant, and most federal grants are about a year.

How does a grant differ from a “match?”

In a federal grant, a non-profit organization can use some or all of its federal funding to apply to another organization for a grant. In a “match” grant, the grant recipient can use any government funding for a specific program or service, as well as many other benefits. Many public agencies offer more than one grant opportunity.

Why do private organizations like to use federal grants?

Private companies and foundations are among the largest non-profits with the most flexibility of any government agency. In a matching program, a nonprofit organization must apply to another charity for the same services in exchange for receiving a small amount of a private company or foundation’s money. The other organization will then match your money.

When is a federal grant time limited?

The amount of time a federal grant is available is set by law – typically 12 months. However, grants for certain programs or services may last more – or less – time, depending on the individual services. For example, a federal grant may be available to organizations, such as a group in the nonprofit community, that work with youth to promote personal responsibility or to help them learn self-esteem. The time limit for these grants may vary. For example, a youth service center that helps low-income youths reach their potential could be eligible for a grant for a year, but only after they reach the highest academic level.

What if a nonprofit organization does more than use the grant? How are the funds distributed?

If the recipient organization receives a matching grant, the organization is responsible for distribution (or allocation). The amount of these funds goes to the organization, but will not replace your grant. If you qualify for the federal matching portion of your federal grant, the funds will be divided among your groups or partners. If your grant is over 30 percent for a particular service, as is the case by most federal grants, the amount of your funds is returned to your general funds account. For more information, see “What are my federal funding obligations?”

Will a private company or foundation get a percentage of my money?

A private company or foundation can do this. However, there is no government funding for such programs!

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