Grant (money)
A grant is a fund given by a person or organization, often a public body, charitable foundation, a specialised grant-making institution, or in some cases a business with a corporate social responsibility mission, to an individual or another entity, usually, a non-profit organisation, sometimes a business or a local government body, for a specific purpose linked to public benefit. Unlike loans, grants are not intended to be paid back. Examples include student grants, research grants, the Sovereign Grant paid by the UK Treasury to the monarch, and some European Regional Development Fund payments in the European Union.[1]
European Union[edit]
European Union grants[edit]
The European Commission 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 Commission in Brussels. Due to the complexity of the funding mechanisms involved and especially the high competitiveness of the grant application processes (14%) professional Grant Consulting firms are gaining importance in the grant writing process.[2] EU grants should not be confused with EU tenders, although there can be some similarities.[3]
Another funding body in Europe is the European Research Council established by the European Commission in 2007: see European Research Council#Grants offered. Similarly there are calls and various projects that are funded by this council.
The European Commission and the Council of Europe also operate a joint grant-funding programme.[4]
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[11] there are over 88,000 trusts and foundations in the country that collectively distribute more than $40 billion annually. Conducting research on trusts and foundations can be a slightly more intricate process, often requiring access to subscription-based directories or databases for comprehensive information.
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.[12]
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.
Grant effectiveness[edit]
Econometric evidence shows public grants for firms can create additionality in jobs, sales, value added, innovation and capital. For example, this was shown to be the case for large public R&D grants,[14] as well as for public grants for small and medium-sized firms[15] or tourism firms.[16]