There is a huge misconception (mainly thanks to some very popular book and television adverts) that the U.S. government is giving away ‘free’ grant money. The first thing you need to realize, if you seriously want to get a grant, is that a grant is not a present. There are some obligations that are expected of the grantee and some requirements that must be met.
The word that you should be focusing on in the section above is the word ‘obligations.’ If you obtain a government grant, or federal aid, then you will be required to do certain things, and not fulfilling these obligations could land you in a whole lot of legal troubles.
The best way to understand the federal aid and grant process is to understand that grants are awarded to organizations that are planning projects to benefit their communities.
These projects can be quite diverse, but they all serve to better the community. Projects can sometimes include the following:
- A county wide flood control solution.
- A regional water conservation initiative.
- A program designed to re-train displaced workers.
- A project for re-paving streets in a neighborhood.
- A program that helps to attract new business to a poor or depressed area.
Your company will need to keep accurate records of its expenditure. The government conducts annual audits, so it is your responsibility to make sure that everything is organized and as it should be.
All of the funds granted to you must be spent. If there is any money leftover that has not been spent, it is returned to the Treasury. It is NOT yours to keep.
It is important that you write out detailed project goals, and that you have them approved and carried out exactly as your grant proposal stated. If any part of your project is liable to change, you must have these changes approved by the government before hand.
In addition to this, all phases of the project must be completed on time, and the overall project must be completed successfully. If you fail to meet the obligations that are set out when you first receive federal aid, you are liable for penalties, or even a prison sentence in the case of theft or improper use of public funds.
It is also a myth that it is easy to apply for federal aid and grants. In fact, many businesses that do acquire a grant have full time staff who are employed to do nothing but apply for the grants.
The truth of the matter is that seeking a federal grant always requires a lot of time and effort, and potentially a lot of money up front. And there is no guarantee of success.
So, if you are looking for a grant, and you don’t know where to start, it is advisable that you hire a grant-writer, or someone who knows the grant process very well indeed. Otherwise, you don’t really stand much of a chance of getting the grant that you desire.
By Fiona McLaren