Grants may also be issued by private non-profit organizations such as foundations, not-for-profit corporations or charitable trusts which are all collectively referred to as charities.
Outside the United States grants, subventions or subsidies are used to in similar fashion by government or private charities to subsidize programs and projects that fit within the funding criteria of the grant-giving entity or donor.
When an awarding agency expects to be substantially involved in a project (beyond routine monitoring and technical assistance), the law requires use of a cooperative agreement instead.
When the government is procuring goods or services for its own direct benefit, and not for a broader public purpose, the law requires use of a federal contract.
These programs fall into 20 categories: State and local governments also provide grants to support various projects and initiatives within their jurisdictions.
These foundations are typically funded by individuals, families, or corporations and have specific focus areas, such as education, health, social services, arts, and the environment.
These foundations often have substantial endowments and provide grants to nonprofit organizations, educational institutions, and other entities that align with their mission and goals.
These foundations pool donations from multiple sources, including individuals, families, and businesses, to create endowment funds that support a wide range of community initiatives.
In-kind donations can include products, services, technology, and expertise that support the recipient organization's operations and programs.
Nonprofit grantmakers, such as the United Way and the American Heart Association, provide grants to support programs and services that align with their mission.
These criticisms include problems of overlap, duplication, excessive categorization, insufficient information, varying requirements, arbitrary federal decision-making, and grantsmanship (a funding bias toward entities most familiar with how to exploit the system, rather than to those most in need).