Differences between Federal Grants And Private Grants
Federal grants are supplied by the government to organizations, agencies, businesses and individuals who are in need of assistance to carry on their education, business or community service. Grants do not require payment unlike loans, but the application process can be rigorous.
Government grants are offered stated as free money, but the truth is that along with the grants are obligations. There would responsibilities that the recipient needs to complete so as to avoid any legal infringement.
The difficult thing about federal or these government grants is the competition. There are different groups and agencies trying for federal grants, sometimes, grant proposal can readily be patterned to other programs who have been awarded with grants. This can increase the opportunity of being awarded with grants.
Another sad thing though with federal grants is that it usually takes a year before a non-profit establishment or institution can genuinely get the grant money. What causes this? If your establishment or the person is located in a rustic location, that might be a factor as the grants allocated for that area can be limited. Most grant money or allocation is kept away for existing or ongoing projects. Actually, this can also happen in larger and urban areas.
Another problem can come from technical problems like misinformation in the application or just forgetting a point in the grant application and proposal. The application may be rejected without due notice.
The majority of the agencies worried about the grant are tied up with other work that is why you get response slower. It would take time before you notified of approval, rejection or even forwarding of funds for the job.
These reasons could push an establishment to get private funding and grants instead. When we’re talking about private grants, these are funds provided by foundations or corporations. There are about 70,000 private foundations in the United States and statistics are showing that they what they give as grants or aids are increasing every year.
The factors why foundations are doing this is because they don’t want to lose their tax exemption. Federal law requires foundations to give away 5 percent of what their assets and incomes value every year.
Non-profit organizations can profit from this foundation characteristic. If a non-profit establishment can develop a solid plan of solicitation and collaboration with a foundation, then they might get funding for their projects and programs without undergoing the arduous process like when trying for federal and these government grants.
To inspire a nourishing relationship between non-profit organization and a foundation, experience is valuable. If the foundation has fostered a relationship which includes volunteerism in the goals and pursuits of the non-profit establishment, it is probable that they would continue partnership with them.
When applying for private funds or grants, it is important to know everything about the foundation you want to work on or ask foundation from. Upon identifying which foundation you want to solicit from, proceed and get in touch with them. This would provide you with first-hand information about the foundations priorities and interests.
Similar when applying for government grants, you would need to create a grant proposal. It should be concise and informative as feasible, but nevertheless leave an impression. Foundation board of directors or grant reviewers would convene a few times in a span of time and they look at the proposals. So you want to pass a thing that would get and retain their attention. Avoid being too creative though, you would like to look after formal and business relationship.
Federal grants and private grants are available for those individuals and organizations who are desperate for help. You should weigh which one is better correct or your requirements and can address your financial woes.
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