Federal grants are money or financial assistance awarded and authorized by the United State government to different non-profit organizations. Its intention is to expand, improve the quality and strengthen the public service being rendered by these organizations, agencies and local government units.
What’s clear about federal grants is that it is not used to acquire or pay for property and service. Unlike loans, grant recipients would not be paying back the grant but they are required to submit complete audits of the grant money and return the unspent amount to the agency that rewarded the grant.