Ohio Grant Agreement - From Government Assoc.
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If the purpose is to acquire property or services for the direct benefit or use of the federal government, the agency is to use a procurement contract; if the purpose is to stimulate or support an activity that serves a public purpose, the agency is to use a grant or cooperative agreement.
A "grant" is a general term for funds that organizations receive that are not expected to be repaid. To receive a grant, organizations must compete for funds by submitting an application and undergoing an evaluation process. Grants may be awarded by state or local agencies, private foundations, or corporations.
It serves as a binding document that defines the responsibilities of districts and the state from the determination of the amount of eligible state funding to the reporting of all project funds, including any savings achieved.
For the United States of America's NIH and NSF, a grant is a contractual agreement for work that will be done, with payments in anticipation of the work. An award is the actual funds. This description of the NIH Notice of Award and this one from NSF may illustrate the distinction.
The grant agreement defines what activities will be undertaken, the project duration, overall budget, rates and costs, the EU budget's contribution, all rights and obligations and more.