Grant Money - Is It Really Free?

by Gregg Pennington

It's true: The federal government hands out a great deal of money each year. It is awarded primarily through various types of grants. It is also true that a large percentage of this money that is appropriated for federal grants goes unawarded, because most people simply aren't aware of the grant programs, or believe that only large corporations and scientists doing research projects are eligible for the programs.

So how can the average person gain access to government grant money? First, be aware that receiving a federal grant award requires some work on your part. You must be able to complete a specific project of government interest or perform some given task. In this way, federal grants differ from entitlements and government benefits, where if you have a need for the money and meet certain other criteria you are eligible to receive an award.

One type of government grant is known as a project grant, and as the name suggests, it requires the grantee to complete some specific action or project. There are a variety of project grants that are available for people or organizations with the resources to complete the project. If you accept a project grant award, you are obligated to complete the project, and could face stiff legal penalties for defaulting on the agreement.

There are some instances where the government provides grant money with no strings attached. This type of grant is known as "direct payments with unrestricted use." If you are eligible you can receive the money and use it as you choose. Just a few examples of this type of grant are: unemployment insurance, grants for farmers and fishermen, and railroad workers' compensation. There are hundreds of these grants that are available to qualified parties, and while the amounts of the awards vary, the money is granted without obligation to repay it or complete any task.

Not all government grants are dispersed as a sum of cash; many of them take the form of specific benefits or assistance programs. For instance, the government may provide low interest loans to people who would otherwise not be able to obtain financing with a traditional lender. FHA and VA mortgage programs, and federal student loan programs fall into this category of government benefits. The government guarantees lenders that they will be repaid, and insures them against default.

While there are many federal grant programs, they are by no means the only source of grant money. Thousands of private foundations award money for a variety of reasons, and these foundations are required to distribute at least five percent of their assets each year in order to retain their tax exempt status. Private foundation money is awarded to people pursuing a college degree, learning a trade, or even starting a business. States also disperse grant money to its residents who are seeking employment, education, and housing.

While tv infomercials may portray grant money as an instant way to become wealthy, the truth is that not everyone can obtain grant money, and those who do receive an award are not going to become rich overnight. They are however, correct in their assertion that millions of dollars of government grant money go unawarded each year, and that you may be eligible for some of the money for one reason or another. You really have nothing to lose in doing some research and finding out just how much.



Gregg Pennington writes articles on a number of topics including government grants and student loan consolidation. For information about finding grant money visit http://www.onlinemoneysources.net/grant-money.html

Article Source: http://www.upublish.info

The First Home Owners Grant

by Tracey Anderson

Copyright 2006 Tracey Anderson

The Australian federal government introduced the First Home Owner Grant (FHOG) in 2000 to compensate for the GST (goods and services tax) and to make buying a home easier for all Australians. Since that time, this popular grant has helped people in every state to buy their first home. As a result of this grant, as well as other economic factors, homeownership in Australia is now at an all-time high.

Depending on your lender, you may be able to use the $7,000 grant as part of your down payment. Not all lenders will allow it to be used in this way however, so if that is your intent, take the time to shop around and compare lenders. The mortgage market is highly competitive, and more lenders are starting to allow the grant to be used as down payment.

There may be circumstances where you may prefer to stay with a certain lender, even if that lender does not allow the funds to be used as down payment; for example, if the lender offers the most attractive interest rate, or lower fees than other lenders. Buyers must balance the cash they have available for down payment against these other factors that may make the loan less costly overall. Even if you do not use it as a down payment though, there are many other practical uses for the Grant. The process of purchasing a home entails many expenses. The Grant may be used to offset any of these expenses as the buyer sees fit. For example, you may use it to offset stamp duty or insurance, real estate agent fees or other mortgage-related costs, such as points or application fees.

The Grant is administered by each state or territorial government. Most first-time buyers will qualify for the grant; specific requirements are available online on the FHOG website (http://www.firsthome.gov.au/). Qualifications are very similar, regardless of your state. You must be a citizen or permanent resident of Australia, and you must be a natural person--in other words, not a corporation. Also, each applicant and applicant's spouse must not own, or have owned property in Australia in the past, even if it is property that is held with another individual. None of the applicants may have received the Grant previously. The Grant is meant for owner-occupants. Applicants must be buying the property for living in, and be prepared to occupy it within a year of purchase.

The Grant is not means-tested and is therefore available to all applicants regardless of income category. The grant is not taxable. In addition to the Grant, you may also be eligible for exemption from conveyance duty, depending on your state.



Tracey Anderson is a mortgage broker specialising in helping Australian homebuyers find the right mortgage. For more information visit MortgageMall (http://www.mortgagemall.com.au).


Article Source: http://www.upublish.info

The Long and Winding Road to Getting a Government Grant

by Joseph Hanoa

There are many programs set up for government grants through a multitude of different government agencies. A government grant is not a loan and so doesn’t need to be paid back. For this reason grants can be a very path to pursue, but these grants are awarded only to non-profit companies and government entities for the purpose of public benefit, not to for-profit businesses however.

The stipulations in regard to qualifying for grants are tremendous. Qualification is based on necessity and purpose, but even if a non-profit organization does qualify to receive grant funding, there is no guarantee it will actually get a grant.

Professional grant writers are often necessary in order to bypass the narrow straits set up by the government on grant funding. For instance, a local government entity might use the services of such a person in writing a grant proposal order to get subsidies from the state or federal government to fund a local public project. When submitted and written in the appropriate manner, grants have a much higher chance of being accepted. There are also cases where grants that were previously available are no longer, as in many cases the grant system was being abused by knowledgeable grant writers who were able to take advantage of certain provisions that allowed them to get multiple grants for the same or similar purposes.

Government grants can be used for a number of different purposes. Grants for land, agriculture, arts, environmental health and natural resources, and many other public uses are available. Each year thousands of grants are issued all around the country for public benefit. Like any other grant, these are only obtainable through the correct sources, and then only with the right grant proposal. The government doesn’t want to give out free money without a good reason, and this accounts for the clandestine system of hurdles that impedes most from getting the funding they seek. In a great many instances it is actually much easier to apply, qualify for, and obtain a loan, such as through the Small Business Administration, than to search for a grant.

In recent years and small but wealthy industry has sprung up around government grants. Many companies promise that individuals and for-profit businesses can get grants, touting the benefits of grants as a reason to hire a grant writer. In some cases these companies and professionals that have grown up around getting paid for writing grant proposals have engaged in illegal conduct, which resulted at times in lawsuits. For the most part it is usually best for anyone seeking a government grant to avoid unsolicited attempts to get them to spend money in order to get a grant.




Joseph is the proud owner of Grant Guide, a website that will explain everything you need to know about Govt Grants. We invite you to visit our site today and see what we have to offer.


Article Source: http://www.upublish.info