Donation vs Grant: Difference and Comparison

Every nation in the world has people today who are in need or who are poor. In some countries, the relative poverty rate is high, while in others, it is low. Poverty-relief foundations exist in these countries.

Such foundations give money or gifts to the poor. Aside from that, the administration announced scholarships for deserving students. Some wealthy and charitable people assist the needy by donating gifts or money.

Key Takeaways

  1. Donations provide financial assistance without expecting repayment, while grants require a specific purpose and adherence to guidelines.
  2. Individuals, organizations, or corporations can offer donations, whereas grants come from various governmental or private funding sources.
  3. Grants involve a formal application, but donations can be given informally without specific requirements.

Donation vs Grant

Donations are voluntary and without expectation of anything in return and can be made on a one-time or recurring basis. A grant is a sum of money given to an individual or organization for a specific purpose or project, awarded by government agencies or other organizations to support research or education

Donation vs Grant

A donation is made by someone for charitable causes or to help a cause. Donations are also referred to as charity donations of products and services, that are sometimes referred to as “gifts courteously.”


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Typically, letters are sent to institutions informing them that those who need it more of any such donation and that it is up to them to choose whether or not to donate.

Grants are “funds” that are given to in-need people in an area. According to some laws and regulations, the govt, establishments, academic facilities, or a person can distribute these assets to the needy.

This category contains instructional scholarship money. Scholarships for deserving students are launched by the government or an educational institution.

There in the case of the educational facility, specific requirements for needy students are in place.

Comparison Table

Parameters of ComparisonDonationGrant
ProcedureNo application process neededApplication process needed
ConditionDonate freely to the needy or organizationCannot donate freely
EligibilityGiven to the needy according to selection criteria and proper rulesNo selection criteria are needed
MotiveThe motive is simply to help the needy.The motive is always specific to a certain reason.
CampaignsCan be through donation campaignsAlways done either by request or campaign.

What is a Donation?

The term “donation” refers to “giving presents or funds to someone else for free.” Individuals and some organizations donate intending to reward or assist those in need.

People make donations to needy individuals in the form of presents or other items (groceries, garments, finances, etc.) based on their socioeconomic status.

They never go back on their generosity to the poor. Some people make donations to organizations that use the money to help needy children or people.

People are donating freely and just never inquire about charitable contributions to the organization again.

Restricted donation (permanent or temporary): People make a donation to the organization with a check and balance attached to them.

A few people have checks and balances to ensure that their money is being used for the purpose intended.

Those who don’t inquire about it after they’ve completed their mission (the temporary type of restricted donation).

Unrestricted Donation: A person donates with no constraints and never inquires about the charity to the organization again.

It is possible to donate in honor or recollection of anyone or something in the name of a 3rd person.

Donations in honor or memory of a 3rd party are decided to make for a variety of reasons, including Christmas presents, newly married gifts, in remembrance of someone who has died, through the memory of pets, or even in the name of that no longer established groups or organizations.

Survivors may request remembrance gifts, which are directed to a charity cause for which the deceased was a donor or volunteer, or to a cause appropriate to the victim’s priorities or manner of death.

Individuals who are unable to attend the event may also make memorial donations.


What is Grant?

Grants seem to be “resources” given to in-need people in an area. According to certain laws and regulations, the govt, institutions, academic facilities, or a person can distribute these funds to the needy.

This category also includes educational scholarships.

The government or an educational institution announces scholarships for deserving students. In the case of the educational institute, specific criteria for needy children are in place.

If a student is suitable for students that criterion, he or she is eligible for the scholarship. Scholarships announced by the government require some paperwork.

Students fill out the form as well as apply for the scholarship, and in need, students are given the scholarship.

A few foundations provide finances to individuals who want to establish a business. Such funds are provided after confirming the nature of their business and completing the proper documents.

Some grantmakers are now referred to as societal investors.

Writing grant proposals has evolved into a specialized activity so over the years. Numerous organizations hire fundraisers to do this work for them.

The fundraising career is ruled by The Institute of Fundraising in Great Britain and therefore is autonomously controlled by the Fundraising Regulator in Northern Ireland, England, and Wales.

The grant writing process generally entails searching for, submitting, and financial reporting for competitive grant money.

Main Differences Between Donation and Grant

  1. An application procedure is required while Grant is given, whereas a donation can be made without such a procedure.
  2. Anyone can donate without any conditions or procedures, but individuals can not grant such.
  3. A person or a group is selected according to the needs, and then a donation is made, whereas a grant does not require any such selection criterion.
  4. The motive of donation is always to help the needy, but the motive for a grant can be more specific to the agenda of the grant.
  5. There are any campaigns arranged in which both donations and grants are provided. A person can donate without a campaign, but such campaigns are required for the grant.
Difference Between Donation and Grant
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