What are differences between GRANT and DONATION?

Grants (Financial aid) are funds given to tax-exempt nonprofit organizations or local governments by foundations, corporations, governments, small business and individuals.

Donation is a gift to a fund or cause, typically for charitable reasons. A donation may take various forms, including cash, services, clothing, toys, food, accommodation, blood or new or used items. Charitable gifts of goods or services are also called gifts in kind.

Grants are determined by some form of application and explanation of need for the fulfillment of a worthwhile endeavor. For example, a grant to a college student in a financial aid package is usually based on their financial need and is also given in consideration of them finishing a degree and then contributing to society. Grants in research are given based on the probability that a study will produce worthwhile results.

Donations are monetary funds that are given generally without a necessary rationale or expectation.

Both types need not be repaid.