Sacramento & Roseville Accounting Services for Government Grants
Our Sacramento and Roseville accountants for government grants at Cook CPA offer a wide variety of accounting services for those seeking a govt. grant.
A grant is a monetary donation that supports an entity such as a person, organization, project, or program. The donation can be given by a foundation or corporation, as well as by the government. Government grants, specifically, are issued for a variety of reasons, usually to non-profit organizations to support the public work they do. For individuals or non-profit organizations that have received grants from the government, meeting all of the conditions dictated in the grant while maintaining financial health can be overwhelming, but there’s no need to worry. Cook CPA can help you.
How Does the IRS Define a Government Grant?Government grants that are given to people, organizations, projects, or programs can be given in the form of scholarships, fellowships, prizes, awards, loans, and program-related investments; grants typically do not include salaries or compensation to employees or payments to persons for personal services. They can be given to either pay for the acquisition of an asset or to cover the reimbursement of costs. Grants are typically given to individuals or organizations that exist for a specific purpose, which means that they focus their efforts on a specific population or a particular type of support. There are a few types of grants that the government may issue:
- Categorical grants – These are issued for specific purposes, and entities that receive them may have to match a portion of the funds that they’re given. These grants are intended to help improve the well-being of residents. There are two types of categorical grants: project grants, which provide funding for specific projects, and formula grants, which provide funding as determined by the law. The former is competitive, while the latter is not.
- Block grants – Block grants are given to state and local governments by the federal government to be used for a general purpose.