Which of the following is a characteristic of discretionary grants?

Prepare for CGFM Exam 1 – Governmental Environment. Utilize flashcards and multiple-choice questions with explanations and hints. Ace your exam!

Discretionary grants are characterized by their competitive nature, where funding is not guaranteed and is awarded based on a specific set of criteria defined by the granting agency. This means that organizations or individuals apply for these grants, and their applications are evaluated to determine which proposals best meet the established priorities and criteria. The selection process can vary in rigor, but overall, it requires applicants to demonstrate how their project aligns with the goals of the funding agency.

This competitive aspect makes it essential for applicants to thoroughly develop their proposals to increase their chances of receiving funding, highlighting the merit-based approach of discretionary grants. In contrast, other options such as consistent allocations, set formulas for distribution, and guaranteed funding do not apply to discretionary grants, as these aspects are more typical of entitlement programs or formula grants, where funding is allocated based on predefined criteria rather than through a competitive application process.

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