A “grant” is money given by the government, a corporation, foundation, or trust to a person or organization.
Grant money is different than a loan because it is not intended to be paid back. However, grants do come with other obligations.
Generally, a grant requires some form of grant writing before it is awarded; either a detailed proposal of how the money will be spent or an application.
Most grants are awarded to fund a specific project, and grant money is most frequently given to fund a purpose that will benefit the public.
Recently, with the discussion of “stimulus money” and “recovery jobs,” there has been a huge growth of websites which claim to help the average American qualify for and receive government grant money.
The Government Grant Scam
Sadly, these websites are almost all scams. They use the search term of “Government Grant” to get people to their website, with promises of either giving them the tools they need to find and qualify for grants, or by saying they will find grants their users qualify for.
When people arrive at the website, they are asked to answer a series of questions, normally dealing with whether or not they would like to further their education, lower their bills, declare bankruptcy, etc.
After you have answered their questions, you will likely be given very basic information on how to obtain grants, or you will be sent information and links regarding grants and where to find them. The real purpose of the website, however, is not to inform you about grants, but to collect your contact information.
Once your information has been collected, it will be sold to third party sources in order for them to contact you with offers and information. Often times, this even includes your waiver of the Do Not Call Registry, which will open your phone line up to telemarketers once again.
Or there are websites that will offer to send you packets of information regarding government grants if you will just pay a small Shipping and Handling fee. However, if you read the Terms & Conditions, these companies often have significantly large hidden fees, which you will quickly be charged after you supply your Credit Card number.
What is Being Done About It
In late 2010, the Federal Trade Commission cracked down on websites that advertised their ability to get government grants for unemployed people trying to reduce their debt. These websites charged a small service fee for information, but then would charge multiple larger sums to their customers after the fact.
The FTC has also recently announced that people have been contacted with email and telephone messages claiming that they qualify for a government grant based on their most recent income tax return. If you have received such a message or have been scammed by a company claiming to provide government grant information, you should contact the FTC.
If You Are Interested in Government Grant Information
The Federal Government provides free information regarding government grants at Grants.gov and it’s 100% free. While the Federal Government is the largest provider of grant money in the United States, many companies and trusts provide grants as well. Information about those can be found – for free – at the FoundationCenter.org.
