Question

What fund or account type would you use if you were awarded a grant for your Government/Non Profit organization?

Answer 1

When the non-profit organisation receives grant, then the following entry is passed-

Cash Dr
To Restricted/Unrestricted/Temporarily restricted Government grant

Hence, the account type for grant depends on nature of grants received.

If grant is received for holding till the perpetuity of the organisation, then it is restricted.
If grant is received for a purpose or time restriction such as purchase of land or equipment, then it is Temporarily restricted.
If grant is received for any purpose including general operations of the organisation, then it is Unrestricted.