A grant is a sum of money or transfer of resources given without the expectation of repayment to support a defined activity, project, person or organization. Grant makers range from public agencies and foundations to corporations and community funds; for a list of typical funders see grant makers. Recipients commonly include nonprofits (nonprofit organizations), schools and universities (educational programs), businesses (businesses), researchers and individuals.
Characteristics and common types
Grants are typically awarded for public benefit, innovation, research, cultural work, capital projects or direct assistance. Types include competitive project grants, formula grants that follow eligibility rules, research and development grants, capacity‑building grants, scholarships and fellowships, and matching grants that require some recipient contribution. Some grants allow indirect or overhead costs; others are restricted to specific budget lines.
Application, award and administration
Applying for a grant usually involves responding to a request for proposals or completing an application form. Applicants prepare a proposal or application that outlines objectives, methods, timeline, budget and expected outcomes; many funders provide guidance and templates—see typical proposal resources at proposal guidance and application portals at application systems. Successful applicants enter a grant agreement that specifies permitted uses, reporting frequency and compliance requirements. Funders monitor progress, require financial and narrative reports, and may conduct audits.
Process steps (typical)
- Identify a suitable funder and read eligibility rules.
- Develop project plan and budget aligned with funder priorities.
- Submit proposal or application by the deadline.
- If awarded, sign the grant agreement and begin work.
- Track expenditures and report outcomes as required.
Grants differ from loans (no repayment) and contracts (procurement with deliverables paid for performance). They can be discretionary (chosen by a funder) or formula-based (allocated by statute or rule). Public grants often aim to implement policy goals; private foundation grants may pursue charitable missions.
Uses, importance and criticisms
Grants enable activities that lack immediate commercial returns—basic research, community services, arts, and education—and can catalyze innovation or scale nonprofit capacity. Criticisms include administrative burden for small applicants, potential dependence on short-term funding, and the risk that funding priorities distort local needs. Effective grants balance accountability with flexibility, clear outcomes with realistic administration.