What is the difference between a grant and a cooperative agreement? Where can I obtain guidance on developing grant agreements or cooperative agreements?
Both a grant and a cooperative agreement are ways that the federal government provides assistance, usually funds, to an outside entity to accomplish a public purpose. The difference between a grant and a cooperative agreement is the degree of federal involvement associated with the assistance. A grant does not involve substantial federal involvement after the assistance is provided, while a cooperative agreement does involve substantial federal involvement. The Office of Management and Budget (OMB) explained the meaning of “substantial involvement” in 43 Federal Register 36860 (Aug. 18, 1978). Examples of substantial involvement include: 1) agency and recipient collaboration or joint participation; 2) substantial, direct agency operational involvement or participation during the assisted activity; and 3) highly prescriptive agency requirements prior to award that limit recipient discretion with respect to scope of services offered, organizational structure, staffing, mode of operation,
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