What is a competitive grant?
Competitive grants can be a great source of funding for organizations and individuals. They provide an opportunity to pursue new and innovative projects and programs and can help organizations achieve their goals and make a real impact in their communities.
Competitive grants are a type of grant funding that is awarded through a competitive application process. Applicants submit proposals detailing information about their organization or project, including the problem they want to solve, the proposed solution, the budget, and the expected outcomes. They may also need to provide letters of support, resumes of key staff, and other documentation to demonstrate their qualifications and ability to successfully implement the proposed project or program. Then, the grant-making agency reviews and evaluates the proposals to determine which ones most closely align with the agency’s priorities, goals, and funding availability and which ones are likely to have the greatest impact.
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Benefits of competitive grants
One of the main benefits of competitive grants is that they allow grant-making agencies to select the best proposals that align with their priorities, goals, and funding availability. The selection process is often based on criteria such as the quality of the proposal, the qualifications of the organization or individual submitting the proposal, and the potential impact of the proposed project or program. This ensures that the funding goes to the most deserving and promising projects.
Another benefit of competitive grants is that they often provide larger sums of money than formula or block grants. This can be especially useful for organizations that are working on large-scale projects or programs that require significant funding.
Drawbacks of competitive grants
Because these grants are competitive, the application process can be time-consuming and may require a significant amount of planning and preparation. In fact, a federal competitive grant application can take up to 150 hours to write. Additionally, recipients can wait months to find out if their proposal has been accepted, delaying programs that are intended to be funded with the grants. Finally, competitive grants tend to have rigorous reporting requirements, especially when compared to formula or block grants. It’s not uncommon for competitive grants to require monthly or quarterly reporting, including financial reports, budget vs actual comparisons, and outcome metric updates.
Examples of competitive grants
When most people talk about grants, they’re typically referring to competitive grants, as they are the most common type of grant utilized by nonprofits, individuals, research institutions, and education. Competitive grants include funding from community foundations, the SBIR/STTR grant program, and grants to individuals, such as artists and teachers.
Despite the rigorous application and reporting requirements, competitive grants can be a great source of funding for organizations and individuals. They provide an opportunity to pursue new and innovative projects and programs and can help organizations achieve their goals and make a real impact in their communities. It’s important for organizations to carefully consider the pros and cons of competitive grants before deciding to apply and to be prepared for a rigorous application process.
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