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5.1 Differences Between Grants and Contracts
Grants and contracts can both bring funds to clinics, but the two are sought and managed differently and have different focuses. More information about these two sources of funding is provided below. Grants The primary purpose of a grant is the transfer of money, property, services, or anything of value to accomplish a public purpose of support or stimulation; the primary beneficiary is the public. Examples include funding clinic staff, equipment, programs, or efforts to enhance services. Grants can be for a single year or multiple years (e.g., 3 to 5 years). A grant proposal may be initiated by the grantee or may be submitted in response to a request for proposals that is announced by the grantor. Contracts Contract bids generally focus on a commitment to provide specified
services and the payment to be received for those services. Contracts
are used when the purpose of a transaction is acquisition by a government
agency or organization. Contracts are more prescriptive than grants,
with specific deliverables (products or services) and deadlines.
New contracts for the same services may be written for each subsequent
year. Contracts can be for a specific scope of work, such as contracting
for clinical services for a patient group, or for a nonclinical service,
such as developing oral-health-education materials and training sessions
for child care providers. |
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