What Is a Grant? Definition, Types, Eligibility & How to Apply (2026 Guide)

What Is a Grant? Definition & Key Features

A grant is a financial award provided by a government, foundation, corporation, or other organization to support specific projects, programs, or initiatives. Unlike loans, grants do not require repayment, making them an attractive funding option for individuals, businesses, nonprofits, and educational institutions.

Organizations award grants to advance their mission or address societal needs. For example, a government agency might fund scientific research to encourage innovation, while a foundation could support arts education in underserved communities.

According to Grants.gov, grants help fund a wide range of activities, including research, education, community development, and business innovation. The primary goal is to provide financial assistance that enables recipients to achieve meaningful outcomes or solve particular challenges. For a deeper dive into the basics, see our comprehensive guide on what is a grant, including definition, types, eligibility, and how to apply.

Types of Grants: Government, Private, Nonprofit & Corporate

Grants come in several forms, each tailored to different needs and sources of funding. The main types include:

– Government Grants: Offered by federal, state, or local agencies, these grants support public projects, scientific research, education, infrastructure, and more. For instance, the National Institutes of Health (NIH) funds medical research, while the U.S. Department of Education provides grants for schools and students.

– Private Foundation Grants: Charitable foundations, such as the Bill & Melinda Gates Foundation, award grants to advance causes like global health, education, or the arts.

– Nonprofit Grants: Nonprofit organizations may distribute grants to fund community projects, social initiatives, or research aligned with their mission.

– Corporate Grants: Businesses offer grants to support community programs, workforce development, or innovation. For example, Google.org provides grants for technology-driven social impact projects.

Each grant type has unique eligibility criteria, application procedures, and reporting requirements. Understanding these distinctions can help applicants target the right opportunities. For more details on the different types of grants and how to find the right fit, check out our step-by-step guide to finding and applying for grants.

Grants vs. Loans vs. Scholarships: Key Differences

Grants, loans, and scholarships are all forms of financial aid, but they serve different purposes and have distinct terms:

– Grants do not need to be repaid. They are awarded based on merit, need, or project alignment with the funder’s goals.

– Loans must be repaid, usually with interest. They are a form of borrowed money, often used for education or business expansion.

– Scholarships are typically awarded for academic achievement, athletic ability, or specific talents. They mainly support educational expenses and may have eligibility requirements based on performance or background.

For example, a student might receive a scholarship for high grades, a grant for a research project, and a loan to cover remaining tuition costs. Knowing these differences helps applicants choose the best funding option for their situation. To learn more about the key differences between grants, loans, and scholarships, read our in-depth comparison guide.

Who Is Eligible to Apply for Grants?

Eligibility for grants depends on the funder and the specific program. Common eligible applicants include:

– Nonprofit organizations, such as charities or advocacy groups

– Small businesses and startups seeking innovation or expansion funding

– Educational institutions, including schools, colleges, and universities

– Researchers and scientists pursuing academic or scientific projects

– Individuals, for certain personal, educational, or artistic endeavors

Some grants are highly competitive and require detailed proposals, while others have simpler applications. Always review the eligibility criteria and guidelines before applying. For instance, many government grants are only available to registered nonprofits or public agencies, while some private foundations support individual artists or students. For a detailed breakdown of grant eligibility criteria and who qualifies, see our complete guide to grant eligibility.

Common Purposes for Grants: Education, Research, Business & More

Grants serve a variety of purposes, depending on the funder’s mission and the needs of the community. Common uses include:

– Education: Funding for scholarships, fellowships, school programs, or student support. For example, Pell Grants help low-income students attend college.

– Research: Support for scientific, medical, or social research projects. The National Science Foundation (NSF) funds groundbreaking research in multiple fields.

– Business: Startup capital, innovation grants, or small business development. The Small Business Innovation Research (SBIR) program helps entrepreneurs bring new ideas to market.

– Nonprofits: Grants for community programs, social services, advocacy, or capacity building. Local foundations may fund food banks or youth programs.

– Individuals: Support for artistic projects, personal development, or emergency assistance. For instance, artists may receive grants to create new work or attend residencies.

The purpose of each grant is outlined in the announcement or guidelines, so applicants should align their proposals with the funder’s objectives. If you are an individual seeking funding, explore our guide on how individuals can find, qualify, and apply for personal grants.

How the Grant Application Process Works

Applying for a grant involves several key steps. Understanding the process can improve your chances of success:

1. Identify suitable grant opportunities using databases, government websites, or nonprofit directories.

2. Carefully review eligibility criteria and application requirements to ensure a good fit.

3. Prepare and submit a detailed grant application or proposal, often including a project plan, budget, and supporting documents.

4. Undergo a review and selection process, which may involve peer review, interviews, or site visits.

5. If awarded, receive funding and fulfill any reporting, compliance, or outcome measurement requirements.

Resources like Grants.gov, the Foundation Center, and local grant directories can help you find and apply for grants. For a deeper dive, see our step-by-step grant process guide on how to find, apply for, and win funding.

Frequently Asked Questions About Grants

**What is a grant?**

A grant is a financial award given to support specific projects or activities, without the need for repayment.

**How do grants work?**

Grants are awarded based on eligibility and merit. Recipients must use the funds as specified and often report on their progress.

**What are the different types of grants?**

Types include government, private, nonprofit, and corporate grants, each with unique purposes and requirements.

**Who is eligible to apply for grants?**

Eligibility depends on the grant, but can include nonprofits, businesses, individuals, and educational institutions.

**What is the difference between a grant and a loan?**

Grants do not require repayment, while loans must be repaid with interest.

**How can I find grants to apply for?**

Use grant databases, government websites, and nonprofit resources to search for relevant opportunities. For more tips and winning strategies, see our expert guide on how to find and apply for grants.