Discovering the definition of a grant
A grant, also known as a cooperative agreement, is a monetary award given by a grantor to a grantee. A grant request is an advance promise of what you or your organization (the grantee) proposes to do when the grantor fulfills your request for funding. The distinguishing factor between a grant and a cooperative
agreement is the degree of federal participation or involvement during the performance of the work activities. When a federal agency program officer participates in funded project activities, it’s called a cooperative agreement.
When the grant applicant is the sole implementer of project activities, it’s called a grant.
Some grant awards come with no strings attached, but many others require you to use the funds in a certain way. Grantors with strings attached to their monies are almost always government grant making agencies (local, state, and federal public sector funders). Grantors with literally no strings attached are referred to as private sector funders. These usually include corporate and foundation grant makers.
So what can a grant pay for? A grant award can be used for whatever the funder wants to fund. This means that reading the funding guidelines is critical when it comes to your chance for success.
Qualifying for a grant
A grant or cooperative agreement application is a written request that you use to ask for money from a government agency, a foundation, or a corporation. Most grants go to organizations that have applied to the Internal Revenue Service (IRS) for nonprofit status and have received the IRS’s blessing as a 501 (c)(3) organization. However, a few grants are given to individuals as well.
Since I’ve been writing grant applications, I’ve seen a growing number of grant awards made to cities, villages, townships, counties, and even state agencies. While none of these governmental units are IRS 501 (c)(3) designees, they’re still nonprofit in structure and can apply for and receive grant awards from the federal government, foundations, and corporations. Grant awards can even be made to international nonprofits, which are referred to as non-governmental organizations, or NGOs.
Looking at the simplicity of a proposal
A proposal is usually a more free-flowing grant request. A proposal involves you putting down on paper your ideas about your organization and the program you want funded. You can dash off a proposal foolishly, simply writing what pops into your mind at the time. Or you can create a proposal the smart way, using a national or regional template format (see “Putting Together and Writing a Winning Request,” later in this chapter for more details). Grant proposals(along with grant applications) require planning, organization, good
research, and writing skills.
Getting the skinny on for-profit and nonprofit contracts
Think of contracts as cousins to grants — similar but clearly different. A contract is a legal instrument reflecting a relationship between the bid-letting agency (government unit or private sector business) and a business. The bid letting agency is seeking to purchase services or products from that business. The offer or, or business seeking to provide the deliverables, must respond to an RFP (Request For Proposal) or RFQ (Request For Quote) in writing and submit it by a deadline.
For-profit businesses apply for and receive contract awards, but nonprofit organizations usually don’t. Instead, they apply for and receive grant or cooperative agreement awards (which I explain earlier in this chapter). A grant making agency (such as the government, a foundation, or a corporation) can issue an RFP; a business seeking a contractual relationship with another business can issue one as well. An RFP or RFQ is very similar in format to a government grant application.
Read More : Exploring the Grant and Contract Basics
