Grants are non-repayable funds or products disbursed 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, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal or an application is required.
Most grants are made to fund a specific project and require some level of compliance and 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 who seek to open a small business. Sometimes grant makers require grant seekers to have some form of tax-exempt status, be a registered nonprofit organization or a local government.
For example, tiered 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 involving business, communities, and individuals is often arranged by application either in writing or online.
In the United States, grants most often come from a wide range of government departments or an even wider range of public and private trusts and foundations. According to the Foundation Center these trusts and foundations number in excess of 88,000 and disperse in excess of $40 billion every year. Trusts and Foundations are a little more complex to research and can be found through subscription-based directories.
Most often, education grants are issued by the government to students attending post-secondary education institutions. In certain cases, a part of a government loan is issued as a grant, particularly pertaining to promising students seeking financial support for continuing their educations.
Grant compliance and reporting requirements vary depending upon the type of grant and funding agency. In the case of research grants involving human or animal subjects, additional involvement with the Institutional Review Boards (IRB) and/or Institutional Animal Care and Use Committee (IACUC) is required.
NASA receives and evaluates both solicited and unsolicited grant proposals. Required documentation is described on appropriate websites such as the Goddard Space Flight Center Grants Homepage: http://code210.gsfc.nasa.gov/grants/grants.htm. The NASA Shared Services Center (NSSC) currently awards all new grants for NASA HQ, GSFC, NMO, Stennis and Dyrden. Awards are made in accordance with the NASA Grants and Cooperative Agreement Handbook <http://prod.nais.nasa.gov/pub/pub_library/grcover.htm>.
The Center for Scientific Review (CSR) is the focal point at NIH for the conduct of initial peer review of grant and fellowship applications. It implements ways to conduct referral and review.
The Office of Extramural Research (OER) provides guidance to institutes in research and training programs conducted through extramural (grant, contract, cooperative agreement) programs.
Most NSF grants go to individuals or small groups of investigators who carry out research at their home campuses. Other grants provide funding for mid-scale research centers, instruments and facilities that serve researchers from many institutions. Still others fund national-scale facilities that are shared by the research community as a whole.
The NSF receives about 40,000 proposals each year, and funds about 10,000 of them. Those funded are typically the projects that are ranked highest in a merit review process. These reviews are carried out by panels of independent scientists, engineers and educators who are experts in the relevant fields of study, and who are selected by the NSF with particular attention to avoiding conflicts of interest. (For example, the reviewers cannot work at the NSF itself, nor for the institution that employs the proposing researchers.) All proposal evaluations are confidential (the proposing researchers may see them, but they do not see the names of the reviewers).
In Australia, grants and financial assistance are provided to businesses by the government, via the Department of Industry and Science. They are available through several programs that aim to offer help to businesses, big and small, create jobs, as well as increase productivity. These programmes provide assistance for industries in transition, support for smaller or new business, tax and duty concessions, and incentives for development and research. The programmes include:
- Defence Industry – These programmes offer advisory services for medium and small defence businesses to help them discover new markets, technologies and ideas. The Defence Materiel Organisation provides funding and services that are personalized to the requirements of each business, in order to help it achieve maximum potential. Only small and medium-sized businesses are eligible for this grant and services are free of charge.
- Venture Capital – These types of grants are accessible to fund managers who aim to raise a venture capital fund between $10 million and $100 million, in order to invest in Australian businesses. The fund must be registered as an ESVCLP or VCLP.
- Manufacturing – Manufacturing grants are accessible to businesses which handle the manufacturing of goods such as footwear, clothing or textile. They aim to provide assistance and support with Building Innovative Capability (BIC) schemes, transition and ATS.
- Entrepreneurs’ Programme – This program is an initiative started by the government in order to encourage productivity and competitiveness at a business level. It was set up as a result of the Industry Innovation and Competitiveness Agenda, an industry policy recently introduced by the Australian Government, which aims to take advantage of all business opportunities and ensure that Australia is achieving full potential.
- Energy and Fuels – The multiple grants for Energy and Fuels are targeted towards helping Australia facilitate a lifestyle that is as environmentally-conscious and sustainable as possible. Grants can be accessed for ethanol production, home insulation, emissions reduction and renewable energy.
- Innovation and R&D – This entitlement program is meant to help businesses access funds in order to make up for the costs of research and development. It is called the Research & Development Tax Incentive and it encourages businesses and companies towards innovation, regardless of size or sector of activity.
- Australian Small Business Advisory Services (ASBAS) – The Australian Government fully supports small businesses and aims to encourage job creation and taking advantage of new business opportunities, in order to further support Australia’s economy. The ASBAS is meant to help small businesses improve their services.
- Growth Fund – The Growth Fund includes programs targeted towards the automotive industry and features grants provided for skills and training, manufacturing investment, structural adjustment and regional infrastructure.
- Regional Innovation Fund – This grant was designed to help with plans for the development of Tasmania, Geelong Region and Melbourne North. The grants are supposed to be used to create jobs, promote business growth and development, as well as encourage an increase in the local economy.
- Collaboration – This program was created to support and facilitate collaborations between industry, the community and researchers. It was set up twenty five years ago and it has enjoyed great success, having helped develop innovative technologies, as well as services and products that aid Australia in solving social, environmental and economic challenges.
- Import and Export Assistance – The Import and Export Assistance grants are meant to help and provide assistance to small and medium Australian businesses regarding matters related to import or export of Australian or foreign goods.
- Industry Skills Fund – This Fund aims to provide assistance to industry in investing in support services and training, as well as developing innovative training solutions. With the help of the fund, businesses can train skilled workforce that is able to understand, work with and take advantage of technological innovation and business opportunities.
The European Commission of the EU provides financing through numerous specific calls for project proposals. These may be within Framework Programmes. Although there are many 7 year programmes that are renewed that provide money for various purposes. These may be structural funds, Youth programmes and Education programmes. There are also occasional one off grants to deal with unforeseen aspects or special projects and themes. Most of these are administered through what are called National Agencies, but some are administered directly through the EU Commission in Brussels.
Another funding body in Europe is the Council of Europe. This is separate from the EU. Similarly there are calls and various projects that are funded by this Council.
Grant-giving organizations in Ireland include the Irish Research Council for Science, Engineering and Technology and Science Foundation Ireland for research grants.
Denmark has an educational universal grant system, SU (Statens Uddannelsesstøtte, the State Education Fund). It is available to all students from 18 years of age and all age groups currently taking courses. There are two systems of SU.
- Youth Education (Ungdomsuddannelse), available to all students in pre-university education (upper secondary education).
- Higher Education (Videregående Uddannelse), available to all students in post-secondary (higher education). This system is a coupon grant valid for 5 years and 10 months from beginning higher education.
In addition to the government grant scheme, more than 35.000 grants in Denmark exists, which is the second largest number of foundations in Europe by country. These foundations are estimated to possess 400 DKK billion ($60bn) in accessible funds.
In Poland there exist two major grant organisations, both founded by the government:
Foundation for Polish Science also offers different kinds of scientific grants for distinguished scholars, both Polish citizens and foreigners.
Grants are made available in the United Kingdom for a variety of business, charitable and research purposes. The biggest grant distributors are government departments and agencies which offer grants to third party organisations (often a charitable organisation) to carry out statutory work on their behalf.
Other major grant distributors in the United Kingdom are the National Lottery, charitable trusts and corporate foundations (through Corporate Social Responsibility policies). For example Google contributes to the grants process through its Google Grants programme, where any charitable organization can benefit financially from free AdWords advertising if they share Google's social responsibility outcomes.
Grants are time limited (usually between one and three years) and are offered to implement existing government policies, to pilot new ways of doing things or to secure agreed outcomes. A grant will usually only be given for a specific project or use and will not usually be given for projects that have already begun.
Over the years the discipline of writing grant bids has developed into a specialised activity. Many organisations employ fundraising professionals to carry out this work. In the United Kingdom the fundraising profession is governed by The Institute of Fundraising. The grant writing process generally includes search, proposal and accounting for competitive grant funds. Traditional search methods - for example referring to the Charities Aid Foundation Directory of Grant Making Trusts - are quickly becoming replaced by online fundraising tools.
- "Foundation Center". Foundation Center. 2012-11-16. Retrieved 2013-01-09.
- "Government Grants for College". School Grants Guide. Retrieved 9 June 2012.
- Business Grant Australia, B2S, 18 February 2014
- Business Grant & Assistance, Business.gov.au, 3 August 2015
- "Danish Education Support Agency". Statens Uddannelsesstøtte. Retrieved 9 June 2012.
- "Small business finance". Bexfinance.com. 2011-10-03. Retrieved 2013-01-09.