What distinguishes project grants from formula grants?

The key distinction that sets project grants apart from formula grants is that project grants are competitive in nature, meaning that they are not automatically awarded to all applicants. Instead, funding is allocated based on a review process where applicants propose specific projects that are then evaluated against set criteria. This competitive aspect often results in only some applicants receiving funding, while others do not, depending on factors such as the quality of the proposal and the availability of funds.

In contrast, formula grants are allocated based on predetermined formulas and criteria that usually relate to the population size, demographic data, or other specific needs of a region. As such, if an applicant meets the requirements laid out in the formula, funding is typically guaranteed.

The other options do not accurately capture the fundamental difference between these types of grants. Project grants are not necessarily larger and can vary in size; they are not limited to education but can pertain to various fields, and while they may sometimes be disbursed in installments, this is not a defining characteristic for distinguishing them from formula grants.