A grant is a funding mechanism a sponsor awards to achieve a specific goal. A grant entails obligations to a sponsor, although the obligations may be less stringent than those in a contract or agreement. In a grant, the sponsor (possibly the federal government) provides oversight and monitoring but is not directly involved in the project. Even if the grant is not as exacting in its provisions, it should be treated with the same respect. At U-M, grants are managed through the eResearch Proposal Management (eRPM) system, first as a proposal with a proposal approval form (PAF) and then, if awarded, as an AWD record.
Also, see cooperative agreement.