The federal grant is a grant that is provided by the federal agency to the recipient who is not in general federal revenue.

This is awarded as a financial assistance to them in order to carry out public purpose of support or stimulation that is authorized by law of the respected nation. The grant is not a medium to acquire property or services for the federal government’s direct benefit.

The federal grants can also be issued to private non-profit organizations like foundations, not-for-profit organizations or charitable trusts that are all referred as charities. Outside the national grants, subventions or subsides are also used in a similar way by government or private charities to subsidize programs and projects that fall within the funding criteria of grant giving entity or donor.

These grant giving entities or donors are also called as grant makers. These grants are unrestricted. They can be used by the recipient in any fashion that is within the perimeter of recent organization’s activities. However they may be restricted for any specific purpose by the benefactor.

Types of Federal Grants

Project grants: These grants are provided very competitively. These are very common forms of grants awarded. They are awarded in the fields of scientific research, technology development, education, art, social services and health care.

Formula grants: These are the least awarded grants. They are strictly provided as dictated by law.

Categorical grants: these grant come with a bundle of restriction. They may be spent only for selected purposes and the recipient is always supposed to match a portion of the federal funds. 33% of these grants are considered as formula grants.

Block grants: these grants are used to combine categorical grants in a single program. Recipients of these grants always have a leeway in using funds than the recipients of categorical grants. All of the block grants are considered as formula grants.

The recipient of the federal grants may or may not have some restrictions using them, but in any ways it may bring some financial stability to the recipient.

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