Gifts and grants are completely different animals, yet they are often treated the same. Unfortunately, those who treat them the same usually end up in trouble.

A gift is just what you would expect it to be – a sum of money or a resource that is given to your organization with nothing expected in return or very little expected in return.  Most cash donations from private individuals fall into this category. Sometimes a donor may request that a gift be earmarked for a particular purpose (i.e., building fund, youth programs, etc.), and sometimes a donor may request a certain type of recognition or publicity (i.e., naming rights, public recognition, etc.), but that’s about it.

A grant, on the other hand, comes with a contract and a set of expectations. A sum of money or a resource is given to you with the expectation that it will be used in a particular way, and appropriate performance is expected.  If you don’t perform, the grantor (if it is a governmental agency) can take the money back. There are usually rules you are expected to follow as you implement the proposal that was funded.

Also, in most cases, a grantor expects that something measurable will change as a result of the money or resource you are given. Gift givers often don’t expect change, but they are support the organization as it currently is (operational support).

Of course, there are some exceptions to the distinction I’ve just made, but the general rule is pretty clear.

Many organizations write grant proposals without understanding the difference, and then they are shocked at all of the :”strings” that come with the grant, even when those expectations were clearly delineated in the instructions before they applied. Part of the decision about whether or not to apply for a grant requires that you look into the future when that grant is funded and determine if you are actually willing to perform as expected.

If not, the grant you’re looking at may not be the one for you.

Related Posts:

The Worst Reasons for NOT Writing a Grant

5 Mistakes That Can Lose Millions of Dollars in Grant Applications

If you need some successful grant proposal samples to help you along, visit GrantSample.com