Grants Fund
Grants are funds provided by an organization to a recipient. Here the organization can be a government, corporation, business firm, institution, foundation/trust or even an individual. The recipient on other hand might be an individual, a charitable trust, nonprofit organization etc. Grants are sometimes tax exemptible based on the purpose of grant. Usually a grant offered to charity and nonprofit organization are eligible for tax exemption, whereas grants offered by institution, colleges, government as scholarships, fellowships etc. are taxable.
How Grants are funded?
Funding of grants are done in several ways depending upon the grant maker. Below discussed are some common methods of funding.
- The grant maker notifies the recipient with a notification usually on newspaper, website or notification portal. Government organization, Institutions, colleges etc. make use of a notification to award grants in the form of scholarships, fellowships etc. An eligibility criterion will be put forward to choose suitable candidates.
- Sometimes research grants are also provided by the Institutions, University or Government. Here the notification is called as invitation. Thus the applicant must do a grant writing (proposal of project) to let know the grant maker the purpose of project.
- Governmental grants are provided to people who were affected with some natural disaster or accidents. Here the respective heads of administration of region/district (In India they are called collector.) are asked to submit a report to government and based on that report a grant is given to the family by government.
- In case of NGOs and charity organizations they will submit a request to the grant provider, and based on several factors a grant is awarded which will be tax free.
