Microgrant

A microgrant is a small sum of money distributed to an individual living on less than $1/day, extreme poverty, for the purpose of creating a sustainable livelihood or microenterprise.[1] Recipients of microgrants can also be organizations or grassroots groups that are engaged in charitable activities.[2][3] se to seek out a loan, or do not qualify for a microloan or other form of microcredit.

There are three primary types of microgrants; one is a small sum of money (~US$50-500) granted to an individual to start an income-generating project, another is a small grant (~$2,000-$10,000) to a community for an impact-oriented projects and a third is a small grant to an individual for any cause they see fit.

The term microgrant can also refer to a grant that is low in value.[4]

Microgrants for income-generating projects

Unlike microcredits, microgrants do not need to be repaid. While microfinance and other financial services are intended to serve the poor, many of the poorest are either too risk-aver

Microgrants for community-based projects

A microgrant serves as an opportunity for communities facing poverty to receive funding for impact-oriented projects, such as schools, health centers, farms and more. Microgrants for community projects provide a novel opportunity for people facing poverty to solve their own local problems with financing that need not be paid back.

Spark MicroGrants is known for pioneering this community-based approach to microgranting. Spark pairs capacity building facilitation with their microgrants to ensure communities receiving the grants are well positioned to take them on.

Microgrants for individual causes

A microgrant has also been coined to describe small amounts of funding awarded to individuals for their own use. The ROI Community deploys this type of microgrant.

References
  1. CSMonitor.com (2008-08-09). "U.S. Army microgrants". Csmonitor.com. Retrieved 2009-09-23.
  2. Schmidt, M.; Plochg, T.; Harting, J.; Klazinga, N.S.; Stronks, K. (2009). "Micro grants as a stimulus for community action in residential health programmes: A case study". Health Promotion International. pp. 234–242. doi:10.1093/heapro/dap017.
  3. "Conditions of Sponsorship | Microgrants".
  4. BenchFly.com (2010-04-02). "Search for Research". BenchFly.com. Retrieved 2010-05-02.


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