Which type of funding is typically provided by governmental agencies or organizations?

Grants are typically provided by governmental agencies or organizations for specific projects or programs. They are funds given to support initiatives without the expectation of repayment, which distinguishes them from loans that must be paid back. Grants often come with guidelines that specify how the money should be used, which can include requirements for reporting on the progress of the funded project.

This type of funding is crucial for various sectors, including education, health, and public service, as it helps support activities that align with public welfare or governmental objectives. Unlike donations, which are generally given voluntarily and without conditions, grants often have stipulations about their use and are awarded through a competitive process. Endowments, on the other hand, are typically larger sums of money invested to generate income for ongoing support, often from private sources rather than governmental entities.