Grant

Typically, a grant is tied to a specific project or activity. Grants usually have a budget and timeline that are outlined in a signed grant agreement. A grant agreement may require reporting throughout the grant period and/or at the conclusion of the project or activity.

Grants differ from donations in that donations tend to be much more general and flexible than grants. A donation can be used to support a nonprofit’s programs, services, or operating expenses. It is less common for a donation to have restrictions as to how the funds can be used. You can often learn about how a nonprofit uses its donations in ongoing donor communications or in an annual report made available to all donors.