Grants and Cooperative Agreements
As defined in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6304 and 6305), a grant or a cooperative agreement is a legal instrument used by a Federal agency to enter into a relationship whose principal purpose is assistance (that is, the transfer of something of value to the recipient to carry out a public purpose of support or stimulation authorized by U.S. law). Thus, grants and cooperative agreements complement procurement contracts and other instruments used for the very different purpose of acquiring goods and services for the direct benefit or use of the U.S. Government.
When providing assistance, agencies must use grants when substantial involvement between the recipient and the Government is not contemplated and cooperative agreements when substantial involvement is contemplated.
There are many steps in the Financial Assistance Process from project inception to the award and closeout.