What is the difference between contracts and grants?
The difference between a contract and a grant is not always cut and dried but it is safe to say that a funder plays a much more active role in initiating a contract. Most contracting is done by government agencies, departments, and institutes; very little is done by foundations. Generally, a contract is a tool used to purchase goods or services. The funder identifies a need, outlines the program and then solicits bids from interested and qualified organizations. In the case of a grant, the grantee initiates a proposal based on general guidelines stated by the funder. A proposal defines the objectives of the project and the uses to which the grant funds will be put. Grants are most often made to support services or research.
