__NOTOC__===What is it?===
Grants and subsidies are forms of aid given by governments or organizations (NGOs) used to stimulate certain projects (grants) / businesses (subsidies) from a political, ideological or social motivation. Funds obtained via this method do not need to be reimbursed and can be used for new or existing non-profit projects or business. Grants can be combined with loans, where the grant may cover
the risks or softer parts. Subsidies may also cover running costs.
===How does it work?===
Most funds have pre-qualification criteria and a rating system related to certain subjects in the final proposal. Try to find a fund with aim and criteria best suited to your plans. Some donors are flexible and might be ready to adapt their criteria to your ideas. Most funds have a standard application form although
completing an application entails more than paper work.
===Who can use it?===
Most funds have defined who may apply for a grant. Legal registration is mostly required. In many cases, you might need an intermediary legally registered in the country in which you apply for a grant.
===Tips===
*Try to build a good relationship with the grant provider, but avoid any act which might be seen as corruption.
*Show why you are the best choice to do a certain job/project and why the project is the best choice in terms of appropriateness, effectiveness or efficiency.
*Include your ‘operational’ or ‘business’ plan, including tariff setting and method of revenue collection.
===Pitfalls===
*Project/ businesses receiving grant money can become dependent on this money instead of generating enough income independently.
*It is necessary to evaluate beforehand whether the required time/energy and ‘dependency’ will pay themselves back.
*Before attracting grants, make sure you are able to meet donor’s requirements on reporting.
===Who should you approach?===
[[Grant provider list |Please refer to this list of Grant providers]]
===External links===
[http://en.wikipedia.org/wiki/Grant_(money) Wikipedia page on Grants]
