Grant money, while free, does come with some strings attached. If you apply for and are awarded a grant, you will need to prove to the organizations that gave you the grant that you have used their funding in an appropriate way. For example, if you are awarded a grant to create a documentary about baseball, you cannot use the money to fund a science fiction blockbuster, or to pay your personal bills. Some grants require you to spend the money within a certain time frame, often one year. Grant-giving organizations are also often very selective when it comes to the type of applications they will accept, as many of these bodies support a very specific cause or group of people.
To apply for a grant from an organization, you will need to fill out an application form, which it will provide. While the exact requirements vary from program to program, you will always need to clearly and concisely explain why you are applying for the grant, how you will use the money if it is awarded to you, and why your project is a good fit for the granting organization to fund. Many first-time grantseekers hire a professional grant writer, who specializes in crafting persuasive applications for funding with a proven success rate.
Grants can be awarded in any amount deemed fit by the granting organization. Some grants are only for a few hundred dollars, while others may be worth hundreds of thousands of dollars. The size of the organization determines the size of the grant, with very large organizations able to provide a larger number of total grants, as well as a larger number of high-value grants. The money is most often awarded in the form of a check.
You may be subject to pay income taxes to the IRS or to your state on grant money that you are awarded. Regulations may vary from state to state, as well as change over time. While scholarship or fellowship grant money is usually not taxable, other grants may be. You should always consult with an IRS agent as well as the granting agency to make sure that you fully understand your tax liability from accepting a grant.
Grants exist to support nearly every type of enterprise. Grants are available to support education, the arts, scientific research, professional development, small businesses, minorities, women, those with special needs, and many other professions and people. Grants can come from state, federal, or private sources. Some grant programs award funds once per year, others biannually, and still others quarterly.