Grants have been issued by several developed countries for decades. What are grants, you ask? Grants are a sum of money- sometimes small, something large- that does not have to be paid back. They are financial awards given to the individuals by the municipal governments or state governments. It is usually issued for a beneficiary project or task with a specific social agenda and can describe best as a present. However, it does not come in with interest or revenue sharing, it is simply a gift to you by the government.
The government often issues these grants with a certain agenda of their own. They often invest in organizations or areas of their country through which economic growth can be hiked. These could be in the development of public facilities and infrastructure or even education. You must keep in mind that these grants are not issued unless it is being funded for any kind of social benefit.
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Government Grants: Friend or Foe
Wondering Who Qualifies for These Grants?
Well, most of these grants are often awarded to government organizations. Nonprofit organizations and educational institutions come in a close second. For schools and research institutions, both the public and private ones are eligible.
The general public may try to receive such a grant but it is difficult to receive any unless you have a business that benefits the general public directly or indirectly. You may also be eligible for this if your services are unique and cannot be replicated.
Thinking about What These Government Grants Used for?
These grants are the primary source of financing for developing new technology-based products. They are also used to fund any type of research conducted by the government. Not everybody is eligible for the grant as you need to fit in certain criteria to receive them.
Despite what the rumor may be telling you, grants are not issued to assist in personal financial issues or to those who are suffering through a tough time.
Pondering How to Apply?
It may tempt you to think that grants are easy money but they are anything but. You need to commit to certain obligations that require time, experience and patience to receive this quota. And if you fail to do so in time, you might even land yourself with some legal repercussions. This protects the government from being conned by individuals with profit motives only.
Are There Different Types of Grants?
Grants are available in a wide range of categories, from health to science, infrastructure, and education. There are also no limits to the number of grants for which you can apply. But you must keep in mind that the primary objective of grants is to promote public welfare in the longer scheme of things.
Grants may finance large projects when the economy is going through a recession. Companies who receive a government grant will be regarded with high esteem and credibility that will encourage their stakeholders to support them. This will do wonders for their fundraising events!
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Is There Any Bad Side to This?
Undoubtedly! Your proposal may be the most innovative and may catch the eye of several entrepreneurs but it will do nothing to budge the government. The government follows strict criteria and any applications are thoroughly processed. Preparing these requests are often time-consuming and perplexing and even the most refined writers may fail to get their messages through.
Also, none of these grants come without any strings attached. You will be thoroughly monitored throughout the entire process to check whether you are using the money for what you claimed you would. Grants also come with a certain amount of uncertainty. While grants may be renewed every year or so, they are also susceptible to collapse.
Why Could Government Grants Get Rejected?
While the media may tell you that grant money is for anyone who seeks it, remember that it is not. There is a tough competition for even the smallest of grants. And all of this is without considering how individuals are unable to source together the necessary resources to produce an application that will make through the screening process.
If your application does not stand out, your grant will not go through either. Several hoaxes come along with grants- companies offering you the best of grant requests and results. Receiving a grant is such an unpredictable phenomenon that even the greatest marketer cannot help you with this.
Government grants may be the solution to all your problems but remember that even if you do qualify for one, you will always need to deliver value to the society with that grant. The money is not free. The money does not have monetary obligations. But it does require you to have some societal ones. Do not be misled by the sweet words “free money.” Concentrate on your own business and money will follow!