Which of the following best describes a characteristic of discretionary grants?

Prepare for the CGFM Exam 1 with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you understand. Ace your exam by studying the key concepts of the governmental environment!

Discretionary grants are funding sources where the awarding agency has the flexibility to decide who will receive the grant based on various factors, often including the quality of proposals submitted and alignment with funding priorities. The competitive nature of discretionary grants means that applicants must submit detailed applications to demonstrate their qualifications and project plans. There is no guarantee of funding, as decisions are made based on the merit of the applications received and the availability of funds. This characteristic differentiates discretionary grants from entitlements or formula grants, which provide funding according to set criteria without the need for a competitive application process. Understanding this competitive aspect is crucial for organizations seeking discretionary grants, as it highlights the importance of preparation and strategic alignment with the funding agency's objectives.

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