What is Grant Funds

What is Grant Funds?


In this article you are going to learn about What is Grant Funds? Grants are something that is familiar in the financial world. For a government, a grant is one source of the State / Regional Budget which is used to fund programs in the region. So, what is meant by grant funds?

Grants are a gift in the form of money, goods, or services, from one party to another for free. These parties can be local government, central government, regional companies, communities, and community organizations.

Grants Vs Social Assistance

Grants are not mandatory and are not carried out continuously. Grants are also different from social assistance, where social assistance is the provision of assistance from the government to individuals, families, groups and or communities that are selective in nature in order to protect beneficiaries from social risks. Explicitly, a grant can be likened to a gift given by one party to another party.

Grants Types

The grants themselves are divided into three. This division is based on the form of the grant itself, which is a

  1. grant in the form of money,
  2. a grant in the form of goods,
  3. a grant in the form of services.

Grants in the form of services usually take the form of technical assistance in education, training, research, and other services.

Who are Grant Recipients?

In the legislation, parties who are entitled to receive grant funds are:


Grants of the government are provided to work units of ministries or non-ministerial government agencies whose jurisdiction is in the area concerned.

Regional governments

Grant funds to other regional governments are given to new autonomous regions as a result of regional expansion as mandated by laws and regulations.

Regional company

Grant funds to regional companies are given to Regionally Owned Enterprises in the context of forwarding grants received by the regional government from the central government in accordance with statutory provisions.


Grants to the community are given to groups of people who have certain activities in the fields of economy, education, health, religion, arts, customs, and non-professional sports.

Social organizations

Grants funds to social organizations are provided to social organizations formed based on statutory regulations.

In its regulations, community organization cannot receive grant funds. There are various requirements so that the community organizations can receive grants.

Conditions for receiving grant funds to the community:

  • Have a clear management
  • Has a position in the administrative area of ​​the relevant local government.

Requirements for grant recipients for community organizations:

  1. Registered with the local government for at least 3 years, unless otherwise stipulated by legislation
  2. Located in the administration area of ​​the relevant regional government
  3. Have a permanent secretariat

Submission of Grant Funds

In the process, the grantee can also obtain grant funds through the submissions he has made. The grant application is intended for the community organizations. The flow is that the community or community organization submits a written grant request to the Regional Government, namely the Governor or Regent or Mayor, wherein the written application shall be stamped and signed by the admins and secretaries or parties at the same level as the chairman and secretary of the community and community organizations.

Documents that must be included in the written grant application are:

Proposal for submitting a grant, which includes background, purpose and objectives, details of the planned activity, and plans for the use of the grant

  • Facts of integrity
  • A statement that provides that the applicant for the grant is ready to be audited
  • For social organizations, it is required to attach a photocopy of the deed of establishment

If we properly use grant funds in society then a lot of developmental projects can be started here.

What is Grant Funds
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What is Grant Funds
In this article you are going to learn about What is Grant Funds? Grants are something that is familiar in the financial world.
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