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What Is A Grant?

A grant is usually a form of financial assistance that is granted to an individual or a company by any capable entity, including the government, a company, a charity, or a foundation, to drive a project, meet a need, or to serve as an incentive for improved performance. They could be for academic or research purposes, rural development, economic empowerment, and so on. In some cases, taking full grant delivery requires the passage of some amount of time referred to as lock-up or vesting periods.

Deeper Definition

Grants can be seen as gifts in that they do not have to be repaid except in some cases where receivers of study grants do not complete their programs and are required to refund the grant. Grants could be either qualified or non-qualified stock options. Employees in an organization are made eligible for each one based on their length of service and loyalty. Still, they also can be unable to sell their granted shares for a specified period. However, their rights to the rewards increase over time, and even if their employments are terminated, they are entitled to certain percentages. It is profitable both ways in that the employers can get improved output from their employees who get equity in return.

Some of the advantages of grants include the fact that they do not have to be refunded; they do not entail the loss of control of the business for grantors that are business owners. When applying, the credit history of the intending grantee cannot hamper their chances. In the same vein, finding a grant that fits perfectly can be quite a task for grantees, asides from the fact that it is a hugely competitive process with loads of aspirants slugging it out for few slots, and the funding does not usually cover 100% of the project’s needs, thus requiring additional funding or sponsorship.

Grant Example

A health professional who doubles as a researcher interested in public health and advocacy might be interested in developing solutions to the world’s current health challenges, including the pandemic and how to forestall similar incidents in the future. They could then apply to the World Health Organization(WHO) or the World Bank for funding/grants to this effect.

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