Grant Myths & Truths

No matter where you go you are likely to be bombarded with advertisements that the government is giving away free money and that you qualify for a grant.

One of the most prevalent ads on the internet were those little ads on the sidebars of web pages saying President Obama wants to buy you a home and that you qualify for a government grant.

In all actuality, these are just scams trying to get you to buy a product or pay a fee believing that you will get a government grant. By understanding the nature of what grants are and how they are funded, you can differentiate between grant myths & truths.

Understanding the Nature of a Grant

Unlike loans, grants will not need to be repaid and they are almost always awarded to government entities or educational foundations for the common good of a specific segment of the population. For example, a university may receive a government grant in order to carry out medical research.

Grants are not intended for individuals unless the grant is for disaster relief or to enable students to attend college. Even so, these are government grants awarded to a larger entity which then distributes funds to individuals meeting specific criteria.

Grant Myth & Truth #1: Being Notified You Qualify for a Government Grant

If you receive an email or telephone call that you are qualified for a government grant, this should immediately raise a red flag. The government does not send any emails nor do they make telephone calls offering free grant money.

This is most certainly a scam so make absolutely certain you do not give out your social security number or any other personal information to the person or entity contacting you – this is most assuredly some type of fraud.

Grant Myth & Truth #2: You Are Already Qualified and Will Not Need to Apply

The truth of the matter is that no matter which type of government grant a person or organization is applying for, there is a definite application process for each and every grant. Anyone telling you that you are pre-qualified and will not even need to apply is perpetrating some form of scam, so beware. Grant applications are usually quite long and detailed and there is no way to get a grant without submitting an application – end of story.

Grant Myth & Truth #3: Paying a Fee for Grant Applications

While the government will, of course, need particular identifying information from you in regards to the grant you are applying for, there is never a fee involved upfront.

Many scam artists are bilking the public of their hard earned money by stating that they can qualify for free government money by paying a fee for the application – while there is helpful information out there, as well as individuals who are more experienced with the grant securing process, no one can guarantee you a grant.

You can get all the information you need on available grants at the government’s website, http://www.grants.gov/.

Grant Myth & Truth #4: Grants Are Available to All US Taxpayers

Just because you are a United States taxpayer in good standing does not automatically make you eligible for a government grant. Government grants are awarded based on meeting certain criteria for which the grant is being written, and being a taxpayer isn’t on the list.

Usually grants are awarded to other government bodies and educational institutions that in turn distribute funds to eligible individuals or use the grant money for research or development. The bottom line is that grants are awarded on merit within the scope of specific criteria.

Grant Myth & Truth #5: All ‘Government’ Organizations Are Official

One of the biggest ways to fool the public is to create a name that sounds official. Just because an organization has official sounding words in its name doesn’t mean they represent the United States government. In fact, most of the time you will find that they are in no way, shape or form related to any government agencies.

This is especially prevalent on the internet and literally millions of unsuspecting people have fallen prey to scam artists. In addition to the above mentioned website, you may want to visit the following URLs to investigate whether or not the organization is official:

http://www.benefits.gov/ – A website established to list information on a number of federal and state benefits programs. This is a comprehensive list of legitimate agencies with information on the benefits and grants available through those programs.

http://www.fafsa.ed.gov/ – This is the place to start when you are looking for an educational grant. FAFSA stands for “Free Application for Federal Student Aid” and this application is the starting point for obtaining any type of educational federal and/or state grants.

Just remember that it is the oldest trick in the book to come up with an official sounding name in order to establish credibility. Do a little research before you fall prey to scam artists who are simply out to make a quick buck before moving on to the next victim.

A Few Additional Words of Warning

With the advent of the internet it is easier for scam artists to set up shop for short periods of time before changing their names. It is cheap and easy to set up a website that sounds official, looks official, but in reality is anything but official.

In fact, because these perpetrators are operating under the guise of being government entities, it is even impossible to research their record through the Better Business Bureau as government bodies are not listed there.

This is one of those times in life where the old maxim holds true: if it sounds too good to be true, it probably is. Just be cognizant of the fact that the government will never charge a fee for an application and you will never be directly solicited. If there is grant money available it will take research on your part to find it. The government will not advertise on the internet that funds are there for the taking.

If you are solicited or happen upon a shady sounding advertisement, it could be a scam, so be mindful. One of the biggest myths of all times is that you will find the government telling you that grant money is available.

The truth is that if you want to find a government grant you will need to find that money with diligent research – you will not find it advertised in neon lights or freely offered on a silver platter.

Not Everything is Doom and Gloom

Now, with all that being said, there are research guides and grant writers out there that are legitimate, and have experience when it comes to the government grant process – keeping these 3 points in mind will help you dramatically reduce your chances of falling for any scams, and increase the likelihood of actually receiving funding:

1. The government will NEVER contact you for a government grant – if you receive a phone call saying you’ve qualified for a grant, 99.9% of the time these are scam artists. If they ask for any kind of money upfront, hang up.
2. Watch out for services or products that guarantee you a free grant before applying – while there is helpful information out there, that you may even end up paying for, no one can guarantee you a grant, period.
3. If it seems too good to be true, take your time researching and look into all of the details further – while you may need to pay for additional information or grant writing help, you’ll never need to specifically pay upfront for a grant.