Myths & Truths About Grants

Billions of Dollars Are Available

It's true that there are billions of dollars in grant money available, both through government and private sources. The vast majority of funds, however, are earmarked for specific purposes, in particular for educational, environmental, research, community service, health care and social purposes. Grant recipients tend to be nonprofit organizations that meet needs detailed by funding sources. Nonprofit organizations have full-time staff trained and experienced in writing grant proposals; the agencies and organizations that are successful in securing grants have track records of spending grant funds wisely on specific, identified needs.

Resources Are Diverse

It's also true that grants funds are available through local, state and federal government agencies, as well as through foundations, companies and other private sources. The federal government---through the U.S. Department of Health and Human Services---actually operates a clearinghouse grant website, "Grants.gov," which provides information about where and how to apply for grants. There are literally hundreds of websites dedicated to helping you locate grant possibilities--some solid informational sources and others dubious. Private sources, such as foundations and businesses, tend to be more discreet about their grant programs, although vast amounts of money are available.

Securing Grants Is Easy

Nothing could be further from the truth. Grant writing is a learned skill. It's intricate, time-consuming and shouldn't be left to amateurs, especially in large, nonprofit organizations that depend on grant monies to survive. Individual grants, such as educational grants, also are complicated. For example, completion of the FAFSA (Free Application for Federal Student Aid) is almost mandatory if you're applying for school assistance of any kind, because most public and private grant sources use FAFSA information in determining your grant eligibility. The fact is, 95 percent of grants are awarded to organizations and not to individuals, and organizations employ professionals to seek and secure grant funds. Operations and individuals who use the "spray and pray" method of applying for every grant under the sun, in the hope of landing a grant purely by chance, are decisively outmaneuvered in the grant-seeking department.

Business Grants Are Abundant

Myths abound on late-night TV and on the Internet. Promises of "easy" money through grants to start or expand your business simply aren't true. Virtually no grants, public or private, are available to simply start or expand a business without very specific conditions attached. Minority "grants," for example, often consist of counseling and information services. Many business grants require you and your business to meet narrowly defined parameters, such as replacing existing light or heat sources with solar panels or meeting an identified need within a specific community. The federal government's Small Business Administration doesn't even offer grant programs, only low-cost loans. The fact is, people aren't going to provide funds just to help your business make money. If it seems too good to be true, it probably is.

Individual Grants Are Plentiful

Individual grants are available, but mainly for educational and research purposes. Again, government agencies and private foundations simply aren't going to give you money to pay your bills. Beware any such claims or promises. There are plenty of government grants available to assist with higher-education costs (such as Pell grants), as well as foundation and private-business grants that also provide educational grants. However, you're not going to secure a grant because you're behind in your car or credit-card payments.