# Government Grant Application: Process, Benefits, and Key Details

## What Is a Government Grant?

A government grant is a financial award given by a federal, state, or local government authority for a beneficial project. It is effectively a [transfer payment](https://www.investopedia.com/terms/t/transferpayment.asp). A grant does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate [subsidy](https://www.investopedia.com/terms/s/subsidy.asp), direct [appropriation](https://www.investopedia.com/terms/a/appropriation.asp), or revenue sharing. The grantee is not expected to repay the money but is expected to use the funds from the grant for their stated purpose, which typically serves some larger good.

In certain cases, there may also be revenue-sharing agreements with the government—for instance, in the case of a discovery that leads to a profit-generating patent.

### Key Takeaways

*   Government grants are competitive financial awards requiring detailed applications highlighting community benefits.
*   Grantees must comply with strict reporting requirements due to the use of taxpayer dollars.
*   Successful grant recipients often gain attention from additional funders and influence within their field.
*   Grants.gov provides access to over 1,000 federal grant programs with around $500 billion in awards annually.
*   Popular grant categories include recovery initiatives, agricultural projects, and the performing arts.

Twenty-six [federal agencies](https://www.investopedia.com/terms/f/federal-agencies.asp) administer more than 1,000 grant programs annually to provide funding for the arts, the sciences, and educational institutions. Government grants help fund ideas and projects providing public services and stimulating the economy. For example, an economics program may be designed to strengthen empirical and theoretical [economic analysis](https://www.investopedia.com/terms/b/bea.asp), as well as the methods for rigorous research on economic behavior. Grants may also support critical recovery initiatives, agricultural projects, and innovative research in all sorts of fields.

Grants are highly competitive, with limited funds awarded through formal review. To apply, identify opportunities (e.g., Grants.gov), confirm eligibility, prepare a proposal and budget, and agree to reporting/oversight. Winning an award can be both financially significant and prestigious for the recipient.

## Understanding the Mechanics of Government Grants

Government grants aren't just bestowed: they must be applied for. Getting a government grant is an extremely competitive process. The paperwork is complex, and applicants must explain how the funds will benefit their community or the public. Creating a strong proposal is tough, so applicants often hire professional help. Some freelance writers specialize in grant proposals.

Grants from the federal government are authorized and appropriated through bills passed by Congress and signed by the president. Grant authority varies among agencies. For example, the [Small Business Administration (SBA)](https://www.investopedia.com/terms/s/small-business-administration.asp) may distribute grants to nonprofit organizations in many of its counseling and training programs.

## Navigating the Process of Securing a Government Grant

Government grants have no hidden costs or fees; they're gifts, not loans. However, because government grants are funded by tax dollars, they include stringent compliance and reporting measures to ensure the money is well-spent.

After receiving a check, the grantee must submit detailed reports accounting for how the money is disbursed. If funds are received in stages, reporting continues during the grant period. Any accomplishments or failures also must be documented and submitted to the sponsoring agency according to various deadlines.

Receiving a government grant is a prestigious event, a sign an individual or [nonprofit organization](https://www.investopedia.com/terms/n/non-profitorganization.asp) has a significant, positive impact on a community or in a field of study or industrial sector. It often brings a project to donors' attention, attracting more funding, nonprofit and profit. It may also give the grantee some influence or attention from the sponsoring agency.  

## Steps to Apply for a Government Grant

[Grants.gov](https://www.grants.gov/) is a free online source for researching and applying for more than 1,000 federal grant programs with access to approximately $500 billion in awards annually. A grant proposal writer may register by completing a standard business profile on behalf of an individual, a nonprofit organization, a research institution, or a similar entity.

The writer also submits an authorized organization representative application, supplies an e-business point of contact, and completes a detailed application. The writer then has access to finding [federal grant](https://www.investopedia.com/terms/g/grant-in-aid.asp) opportunities, applying for and tracking grants, and receiving grant email alerts, webinar schedules, and tips from grantors.

> **Important**
>
> Government grants come with no strings, and that includes the application process, so if you are asked to submit a fee to apply or to learn more about a grant, there’s a good chance it is a scam.

## Real-World Example: Government Grants in Action

The performing arts is one popular category for many government agencies awarding grants. For example, in early 2019 the U.S. Embassy’s Public Affairs Section in Moscow [sought grant applications](https://www.investopedia.com/terms/r/request-for-application.asp) to identify and select American artists and performers to bring to Russia for short-term programs in the fields of music, dance, theater, film and television acting, and culinary arts.

Eligible applicants could include nonprofits, small businesses, and public or private universities; Grantees could get up to $650,000 to perform in Russia. The goals of the grant included strengthening "people-to-people ties" between the U.S. and Russia and "showcasing American values by presenting the full range of American creativity and innovation."

## The Bottom Line

Government grants are non-repayable awards from federal, state, or local authorities that fund projects benefiting the public. Applying is competitive and requires a detailed proposal, often submitted through Grants.gov, which offers access to over $500 billion in funding. Winning a grant is prestigious, can attract additional support, and boosts credibility, but recipients must comply with strict reporting and accountability requirements.

> **Article Sources**
>
> 1.  Grants.gov. "[About the Grants.gov Program Management Office](https://www.grants.gov/support/about-grants-gov.html)."
>     
> 2.  Grants.gov. "[What Federal Agencies Award Grants?](https://www.grants.gov/learn-grants/grant-making-agencies.html)"
>     
> 3.  USA.gov. "[Government Grants and Loans](https://www.usa.gov/grants)."
>     
> 4.  Grants.gov. "[How to Apply for Grants: Getting Started](https://www.grants.gov/applicants/grant-applications/how-to-apply-for-grants)."
>     
> 5.  Committee for a Responsible Federal Budget. "[Appropriations 101](https://www.crfb.org/papers/appropriations-101#what)."
>     
> 6.  Small Business Administration. "[Grants](https://www.sba.gov/funding-programs/grants)."
>     
> 7.  Grants.gov. "[Grant Reporting](https://www.grants.gov/learn-grants/grant-reporting)."
>     
> 8.  Grants.gov. "[Workspace Roles](https://www.grants.gov/applicants/workspace-overview/workspace-roles.html)."
>     
> 9.  Grants.gov. "[Grant Related Scams](https://www.grants.gov/learn-grants/grant-fraud/grant-related-scams.html)."
>     
> 10.  U.S. Embassy, Moscow. "[Public Affairs Section Request for Grant Proposals: FY 2019 Cultural Programming Support](https://docs.google.com/viewerng/viewer?url=https://s3-us-west-2.amazonaws.com/instrumentl/grantsgov/312941.docx)," Pages 1-10.
>      
> 11.  U.S. Embassy, Moscow. "[Public Affairs Section Request for Grant Proposals: FY 2019 Cultural Programming Support](https://docs.google.com/viewerng/viewer?url=https://s3-us-west-2.amazonaws.com/instrumentl/grantsgov/312941.docx)," Page 1.