What is a capital grant primarily used for?

A capital grant is primarily designated for large-scale projects that require significant financial resources, such as the construction or renovation of facilities, major equipment purchases, or other substantial expenditures that contribute to the long-term objectives of an organization. These grants are intended to support endeavors that enhance infrastructure or enable growth, making it possible to undertake projects that would otherwise be unattainable with regular operational funding.

In this context, capital grants differ from operational funding, which typically covers day-to-day expenses like salaries or routine maintenance. Small equipment purchases and community outreach programs would generally fall under different funding categories, emphasizing the unique role of capital grants in providing support for major initiatives that have a lasting impact on facilities and services.