Grants are nonrepayable funds or products that are given by a grantor, which is often a government agency, to a recipient. The recipients are most often nonprofit organizations, such as educational institutions, or individuals doing research for an educational institution.
Grants can also be given to victims of natural disasters and people looking to open small businesses, but often grantors require that the grantee have some form of tax-exempt status. Although grants are non-repayable funds, meaning that it is not necessary to pay them back, they do require a good bit of work to be received. To be the recipient of a grant, a person must go through the grant writing process, where either a formal proposal or application is required. Once received, grants also often require a certain level of compliance and reporting to the grant maker.