What is a sum of money given by a government or other organization for a particular purpose called?

A grant is a fund given by an entity – often a public body, charitable foundation, or a specialized grant-making institution – to an individual or another entity (usually, a non-profit organization, sometimes a business or a local government body) for a specific purpose linked to public benefit. Unlike loans, grants are not to be paid back.

Econometric evidence show public grants for firms can create additionality in jobs, sales, value added, innovation and capital. For example, this was shown to be the case for large public R&D grants, as well as for public grants for small and medium sized firms or tourism firms.