A grant is money given to an individual or an organization that does not hold an obligation of repayment. In that respect, it differs from a loan, and does not incur any debt or interest. Grants can be given out by foundations and governments. Grants to individuals can be either scholarships or donations to non-profit organizations. Other grants include intergovernmental grants which are used to correct fiscal imbalances between different levels of government. Many federations use these grants to correct imbalances between taxing and spending across different levels of government.
Project grants are awarded competitively. Project grants are the most common form of grant and a large number are found in scientific research, technology development, education (such as Federal Pell Grants), social services, the arts and health care.