No Obligation. Ah, the things we do (or dont do, in this case) for free moneyfree federal grants.
However, contrary to what a lot people are being made to believe, these free grants constantly being touted on the Internet and the mass media may not exist at all. At least, not in quite the same way we believe it does. In truth, neither the U.S. government nor any philanthropic organization is giving away free grants. Money, yes, but not free, as in the saying free as a bird.
Common sense and the most basic awareness of business principles should tell you that no one besides Mom and Dad (and even that earns a maybe) will give you no-strings-attached money to start a for-profit business.
If the government was in the position of providing all of the funds for free to people who start their own businesses, we wouldnt last long, says Mike Stamler, a spokesman for the U.S. Small Business Administration in Washington, D.C.
Not to mention that the American people would never stand for the government setting individuals up in business at no cost, and all at taxpayer risk, he further adds.
In his book American Government and Politics, Jay M. Shafritz defined a grant as a gift that entails certain obligations on the part of the grantee and expectations on the part of the grantor.
The operative word to remember in getting free federal grants is obligations. Every free federal grant you receive comes bundled with certain obligations and responsibilities that you need to fulfill or comply with. Non-compliance of the obligations stipulated in a grant usually means you get loads of legal troubles to grapple with.
In this regard, a grant, therefore, is essentially a contract in that you are bound to fulfill your end of the bargain. If you dont, penalties would be imposed.

Who are entitled to free federal grants?
MYTH #1: Anyone can get free federal grants.
At some level, anyone is indeed entitled to grants given by the U.S. federal government. For as long as you have all the necessary qualifications, then there is no reason why you should not be awarded a grant.
But,
FACT: Grants are not gratuitous like a donation. Indeed, they are more like a loan in that you need to apply and qualify for a free grant program.
A federal grant is onerous, which means that there are conditions and obligations that require compliance. And often, these obligations and conditions are major, the amount of money you receive from the grant dependent on how large-scale or important the project is.
Because of that, it is most often the case that free federal grants are awarded to organizations that have major projects, deemed to benefit the community. Why organizations? Because organizations usually have the means and the ways to accomplish the project within the stipulated terms and conditions of the contract of grant. But that is not saying though that grants cannot be awarded to individuals like you. If you are deserving, then why not?
The following are some samples of projects that the Federal Government may award to deserving individuals or organizations, giving them funding for:
A neighborhood street paving project

A state-wide program to re-train displaced workers

A project to attract new businesses to a depressed downtown area

A regional water conservation program

A county-wide flood control project

What does a free grant entail?
Another example is the Department of Health and Human Services or HHS. Congress has allocated $20 million to the Department for cancer-prevention projects. This means that if you or your organization has a project that could help prevent cancer then you can submit free government grant application to HHS.
Most U.S. government grants, however, are handed down to the local level where you apply. The same thing applies with non-profit grants. You can get your money right in your neighborhood.

More Information on Free Federal Grants
MYTH #5: Free grant information is easy to find. Just type the word free grant in any search engine and follow the links provided.
FACT: Do not believe everything you read on the Internet. There is every chance that the so-called free grant program you are considering is a scam. If you want a legitimate source of free grant information, then check the sites provided below:
Aside from the CFDA website, information on free government grant money could also be found on Grants.net, Non-profit Gateway and The Foundation Center.
GovBenefits was recently launched to cater to the publics need to be informed of benefit programs that one can avail of. Whether you need free grant info on road projects, emergency funds, student scholarship grants, et cetera, GovBenefits may provide you with the information you need. Free grant info by GovBenefits can be accessed at GovBenefits.gov.

The site is actually a government initiative spearheaded by President Bush. Their aim is to make e-government initiatives more citizen-focused, allowing ordinary citizens like you a better chance at getting free government-funded grants for your community-oriented project proposals.
As a free grant search online tool, GovBenefits allows everyone to access and consequently avail of government benefit programs that are designed to help you. This free grant search intends to lessen bureaucracy and give efficient service to the people by doing away with most (if not entirely all) of the paper work.
Some government grants, however, may only be awarded to specific types of people. For instance, student grants may only be given to students, such as the Federal Students Aid or FAFSA, which is another government-initiated funding program for student resource.

FAFSA website can be found at FAFSA.ed.gov and contains not only information for student aid, but loans and campus-based student aid programs as well. To apply, FAFSA requires only that you follow its seven-step application guidelines, inquiring about your personal data, school plans, financial status and many others.

What are the types of grants awarded by Congress?
The government allocates different types of free government grant money. One of these is formula grants, which are free government grant money distributed for continuing activities according to formula prescribed by law.
Another is project grant. A project grant is free government grant money used to fund a specific project for a specific period without sanctions for failure to perform, such as research, training, scholarship grants, et cetera.
Direct payments for specified use are free government grant money given to individuals or private organizations that require particular performance from the grantee such as Medicare. Direct payment with unrestricted use, on the other hand, is free government grant money given directly to beneficiaries who satisfy federal eligibility such as pension, retirement, et cetera.

The truth behind free federal grants is that with federal funding cutbacks and intense competition to avail of them, seeking free federal grants can take a lot of time and money with no guarantee of attaining free federal grants.
Free federal grants require a lot of legwork for the applicants. These free federal grants obligate the grantee/s to fulfill some responsibilities. Free federal grants come with a price tag too.

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