Do you know the Functions of Federal Grants and Federal Funding

Let's say, you form an organization, a nonprofit foundation that aims to provide charity relief to, let's say, the poor community in your area. You then conceptualize a feeding program for the community. Yet with all the resources that you currently have at hand, you still have a shortage of funds, and the donation drive is still going poorly. So what do you do?

You then ask the government for funding. This is known as a federal grant.
In the United States, a federal grant is a monetary award or aid, issued by the government out of the general federal revenue, for the recipient to carry out a project or charitable work. Usually, the project can encompass as small as a local town, to as big as a state, and the recipient could be a nonprofit charity organization, the local government, an educational institution, a business, even an individual (though this is rare).

As defined in Title 31 Section 6304 of the U.S. Code, a Federal Grant is...
"...legal instrument reflecting the relationship between the United States Government and a State, a local government, or other entity when...

...the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and..
...substantial involvement is not expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement."
This is known as the Federal Grant and Cooperative Agreement Act of 1977.

Getting the Grant
Getting funding from a federal grant has requirements, which, if not met, will make the recipient face legal action. The project must be within a state and county government, or to a nonprofit organization, which complies with the 501C3 tax-exemption under the Internal Revenue Service tax code. Once the project is compliant, the representative can then do some form of "Grant Writing", which is a proposal to the government. Individuals and small business are not eligible for grants, though there are other ways for them to pursue federal funding, like state development agencies. Grants are more commonly awarded to wide-scale projects, like natural disasters, feeding program, infrastructure, etc.

Types of Federal Grants
There are several types of federal grants. A block grant is awarded to a local or state government for use on a more general purpose. Likewise, a categorical grant is given for the purpose of funding a specific local project, like a health program. A project grant is funding received for the purpose of research, usually related to medicine, space programs, or so. Finally, there are earmark grants which are set apart by some members of the U.S. Congress for other projects, though are highly protested because it can be used for a project which benefits the personal interests of certain individuals or agencies.

Author Bio:
John Lewis is financial lead at "http://www.fundinggrants.com.au/", Funding Grants is Private Funded Company, who provides grants Australia-Wide to both business and individuals. It specializes in fast finance lending mainly using online services which is faster easier and safer.
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