What Are The 3 Types Of Grants?

What Are The 3 Types Of Grants?

How to Tell the Difference Between the 3 Types of Grants:

Grants are a valuable source of financial assistance offered by governments, private organizations, and institutions to individuals or groups who meet specific criteria. Unlike loans, grants do not need to be repaid, making them a popular option for students, entrepreneurs, researchers, and communities seeking support. But when it comes to applying for one, many people wonder: What are the three main types of grants?

Understanding the different types of grants can help you choose the right one and improve your chances of approval. Generally, there are three primary types of grants: need-based grants, merit-based grants, and project or program-based grants. Need-based grants are awarded to individuals or organizations facing financial hardship. These are commonly used in social welfare and educational settings to help those who lack resources.

Merit-based grants, on the other hand, are given to applicants who demonstrate outstanding achievements or qualifications. These can be based on academic performance, artistic talent, or research excellence. Lastly, project or program-based grants are designed to fund specific initiatives, such as community development projects, scientific research, or small business startups. These grants are usually tied to clear goals, deliverables, and timelines.

By understanding the differences between these three types, you can determine which grant best fits your needs and eligibility. This article will explain each type in more detail, show you who qualifies, and guide you on how to apply effectively. Whether you are a student, a nonprofit, or an individual seeking support, knowing the types of grants available is the first step toward securing funding.

What Are The 3 Types Of Grants?

All grants fall into one of the following categories:

Need-Based Grants:

Need-based grants are awarded to individuals or groups who demonstrate financial hardship or limited income. These grants are designed to provide support where it’s most urgently needed and are often used in education, social services, and disaster relief.

For example, students from low-income households may qualify for a need-based education grant to help cover tuition, books, or living expenses. In South Africa, the Social Relief of Distress (SRD) grant by SASSA is a form of need-based financial aid aimed at assisting unemployed individuals who lack any source of income.

Eligibility for need-based grants typically involves a means test or income assessment. Applicants must prove they do not have the financial means to meet specific basic needs.

Merit-Based Grants:

Merit-based grants are awarded based on an applicant’s achievements, skills, or qualifications. These grants are not influenced by financial need but instead focus on talent, academic performance, leadership ability, innovation, or other exceptional qualities.

Common examples of merit-based grants include scholarships for top-performing students, grants for accomplished researchers, or awards given to artists and athletes who have demonstrated exceptional ability in their field.

These grants aim to reward excellence and encourage further development in areas such as science, education, sports, and the arts. Applicants usually need to submit records of their accomplishments, such as academic transcripts, portfolios, or letters of recommendation.

Project or Program-Based Grants:

Project or program-based grants are awarded to fund specific initiatives, activities, or goals. These grants are commonly given to organizations, businesses, or individuals who propose a detailed plan outlining how the funds will be used.

Examples include community development projects, environmental conservation efforts, scientific research, public health campaigns, and small business startup funding. Donors or grant agencies usually require applicants to submit a proposal that includes objectives, budgets, timelines, and expected outcomes.

Once approved, recipients are often expected to provide progress reports or documentation showing how the funds were used. These grants are ideal for people or groups who want to make a positive impact through structured and accountable projects.

Why Understanding Grant Types Matters

Knowing the difference between need-based, merit-based, and project-based grants can help you determine which type best suits your situation. Each grant type has its own criteria, application process, and documentation requirements.

For example, if you are a student from a low-income background, applying for a need-based grant makes sense. But if you have outstanding academic or athletic achievements, a merit-based grant may be more appropriate. If you run a nonprofit or startup and have a well-structured initiative, a project-based grant could be the right fit.

Applying for the wrong type of grant or not tailoring your application to meet its specific criteria can lead to rejection, even if you qualify for another type.

What Are The Types Of Grants Offered By Sassa? |What Are The 3 Types Of Grants?

Below are the Sassa grants:

Disability Grant

• The Disability Grant is a grant of up to R2080 per month (based on a sliding scale; however, this is the maximum amount).
• The Disability Grant is for people with a physical or mental disability who cannot work for 6 or more months.

Foster Child Grant

• The Foster Child Grant is a grant of R1120 per child, per month. The FCG grant is for a foster parent (by a valid court order) of a child under the age of 18.

Older Persons Grant

• The Older Persons Grant is a grant of between R2080 and R2100 (people between 60 and 75 years old will receive the lesser amount, while people over 75 years old will receive the greater amount).
• The old age pension grant is for older people who meet the means test.

Grant-In-Aid

• The Grant-In-Aid is a grant of R500 per month. The GIA grant is for current grant holders who cannot care for themselves and need to pay someone to care for them full-time.

War Veterans Grant

• The War Veteran’s Grant is a grant of R2100 per month.
• The WVG grant is for former soldiers who fought in the Second World War or the Korean War and are unable to support themselves.

Srd Grant

• The SRD Grant (Covid-19 Social Relief of Distress Grant) is a grant of R350 per month.
• The SRD grant is for South African Citizens/ Refugees/ Asylum Seekers/ Special Permit Holders who do not have sufficient means to support themselves.

Care Dependency Grant

• The Care Dependency Grant is a grant of R2080 per child, per month.
• The CDG grant is for parents, foster parents, or primary caregivers of a child under the age of 18, who requires full-time care due to a mental or physical disability.

Child Support Grant

• The Child Support Grant is a grant of R500 per child, per month (and R250 top-up).
• The CSG grant is for the primary caregiver of a child under the age of 18 years.

Read Also: How Do I Ask For Grant Money?

Conditions Required To Apply For The Sassa Online Application

You will be required to provide the following personal information:

• Your citizenship (South African citizen/ permanent resident/ refugee)
• Your ID number
• Your ID document type (ID document/ temporary ID)
• Confirm your ID number
• Your title (Mr/ Mrs/ Miss)
• Your surname
• Your full name
• Your email address
• Your chosen password (must be at least 8 characters, containing at least 1 of the following: uppercase or lowercase letters, numbers, symbols, or special characters) (must not be a common word or name, or a close variation)
• Confirm your chosen password
• Your cellphone number (your 10-digit South African cellphone number, starting with 0)

How Do I Apply for Grant Money? |What Are The 3 Types Of Grants?

If you are applying for a Care Dependency Grant, Child Support Grant, Foster Child Grant, Disability Grant, Older Persons Grant, or Grant-In-Aid, follow these steps:

• Visit the SASSA services website on any device with internet connectivity (cellphone, tablet, laptop, desktop computer).
• Register as a new user on the SASSA services website by clicking the yellow “Register” button on the home page.
• Log in to the SASSA services website using your username and password.
• Click on “Apply for a Grant” and then select the type of grant you wish to apply for.
• Fill in the grant application form by providing all the required information.
• Print the SASSA-generated affidavit and have it certified by a commissioner of oaths. Print, sign, and submit the Bank Payment Form with your affidavit.
• Upload the following certified supporting documents in PDF format:

Child Support Grant applicants:

• A copy of the applicant’s ID document
• A copy of the spouses’ ID document (if applicable)
• Proof of marital status: marriage certificate (if applicable)
• Proof of banking details: a letter from the bank with the applicant’s banking details and name
• Proof of income (if applicable)
• SASSA generated affidavit

Foster Child Grant applicants:

• A copy of the applicant’s ID document
• A copy of the spouse’s ID document (if applicable)
• Proof of marital status: marriage certificate (if applicable)
• Proof of banking details: a letter from the bank with the applicant’s banking details and name
• Proof of income (if applicable)
• SASSA generated affidavit

Older Persons Grant applicants:

• A copy of the applicant’s ID document
• A copy of the spouses’ ID document (if applicable)
• Proof of marital status: marriage certificate (if applicable)
• Proof of banking details: a letter from the bank with the applicant’s banking details and name
• Proof of income (if applicable)
• SASSA generated affidavit

Read Also: Can I Apply For a Grant Online?

SASSA Contact Details

• For any further queries, please get in touch with SASSA directly:
• Contact the SASSA Toll-Free Call centre on 0800 60 10 11
• Contact the SASSA Head Office on 012 400 2322
• Email SASSA Head Office at: Grantsenquiries@sassa.gov.za

SASSA offers three main types of grants: the Old Age Grant, Disability Grant, and Child Support Grant, which provide financial assistance to eligible individuals and families in South Africa. These grants aim to support the elderly, individuals with disabilities, and children to meet their basic needs and improve their overall well-being. For more information, please visit SASSA Grant’s official website.

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