Difference Between Donation and Grant
Donation vs Grant
Donations and grants are a form of giving something like cash, services, and goods that can be a benefit for people who are in need of them. Donations and grants differ in many aspects and cannot be used similarly.
A donation is given by anyone usually for charitable purposes and to benefit a cause. Donations are also known as charitable gifts of goods and services sometimes called “gifts in kind.” Usually, letters are given to institutions to inform them that they are in need of any kind of donations, and its up to them if they want to give or not.
Grants are funds given by a specific party, particularly the government, corporations, foundations, educational institutions, businesses, or an individual. To be able to receive a grant, a “grant writing,” usually referred to as either an application or proposal is required. When grant writing is given, it is required that something specific is given for people who are need. Grants require approval by authorized people or grantors before it is given to those who ask for such help. It takes a long process to accept a grant because grant writing involves the applicant submitting a proposal to a potential grantor. But for donations, it doesn’t need to undergo any process for it to be approved by anyone.
Donations are usually given wholeheartedly by people who really want to help someone in need. Usually it comes in forms of cash, services, and goods like: clothing, food, toys, and even vehicles. It sometimes consists of human aid, and also medical care needs like blood and organ transplants. Similarly, grants can be given to individuals like victims of a natural disaster and also whoever wants to open a small business. Sometimes it has a form of tax-exempt status registered as a nonprofit organization or local government.
In conclusion, a grant may be a sum of money or services given by a government body for specific purposes. Usually the money given can only be used for the intended purposes stated in the grant writing or application. Grants are actually similar to an allowance. Donations are forms of gifts. They are voluntarily given without any requirements or strings attached, and it doesn’t require anything in return. It’s up to the receiver to use what is given or may dispose of it when he or she does not need it.
1.Donations and grants are forms of giving something like cash, services, and goods that can be a benefit for people who are in need.
2.A donation is given by anyone usually for charitable purposes and to benefit a cause while grants are funds given by a specific party, particularly the government, corporations, foundations, educational institutions, businesses, or an individual.
3.Grants undergo different processes before they are approved. It requires approved grant writing before goods or services are given while donations can just be asked directly of someone or to a specific institute. Without a letter of request, donations may or may not be given.
4.Donations are given wholeheartedly while grants usually need to be asked for before it is given.
Grants are usually given by the government for specific purposes while donations are given voluntarily without any requirements.
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