Most grantees have significant operating costs, which are in part covered by the funding. A grantees’ expenses are expected to be modest, and this, in turn, reduces the administrative costs.
A research grant is one of the few areas where private donors are willing and allowed to finance research at the expense of the taxpayer.
In any instance where the research is undertaken or undertaken by a university, grant money will be made available to the university in exchange for its promise that any profits will be returned to the federal government. Thus, research is a matter not controlled by government but made subject to the demands of the private sector.
What is the disadvantage of grants and how much are they worth?
Grantees need to raise significant funds for research and administration. Some have their own endowments and other sources of capital, either from their own personal resources, or from other grants they have won.
In addition to the costs involved in setting up a grant (either for the research funder or for the research itself), the cost of setting up a new institute or starting a new research unit is typically very large—especially if the new institute will be a new or modified institution. In practice, however, some grants can be set up without much difficulty.
Most grantees want to be able to return the majority of any profits raised in return for the grant money to the government. This allows them to avoid the high cost of making money from grants.
Does the public give more to research than to other kinds of social programs?
Most research funds are used for the research itself as well as for the administration of each new facility or institute. Because these expenses are expected to be low, a large portion of the expenditures is usually covered.
How does the amount of grant money available vary depending on what program is being funded?
The amount of funds available to a government or institution depends mainly on the program itself as well as on the nature of the grants that are being made available to it.
The money available for research generally increases for new programs such as natural sciences by one-quarter on the date of the federal funding decision and to new research units by one-half. This is in effect to raise the amount available for research, and it does so by taking the surplus available from earlier programs.
The amount of funds available to institutions for administration (the salaries, salaries, and expenses of administrators for institutions with a grant or other type of support program)
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