When is money typically given as a grant?

Money is typically given as a grant for specific purposes or projects because grants are generally designed to fund initiatives that align with particular goals, such as research, development, or community improvement. This funding structure is often tied to predetermined criteria and objectives that the grantor seeks to support.

For example, a government agency or foundation might provide a grant to a nonprofit organization to help implement a community health initiative. The funds must be used as outlined in the grant proposal, ensuring that the money serves the intended purpose and produces measurable outcomes. This targeted approach distinguishes grants from other forms of funding that may not have strict usage requirements.

In contrast, grants would not typically be provided solely for ongoing expenses, since such expenditures do not typically fulfill specific project goals. They are not intended for personal use by business owners, as grants are generally directed towards projects rather than individuals. While expansion of a business could be a reason to seek funding, grants are not limited to that scenario but rather focused on specific initiatives or tasks that need funding.