Performance grants are financial awards given to individuals or organizations based on their ability to achieve specific goals or outcomes. These grants are often used in fields like education, healthcare, and the arts, where measurable results can be tracked. The funding is typically contingent upon meeting predetermined performance metrics, encouraging recipients to focus on achieving high standards. These grants can come from various sources, including government agencies, private foundations, and nonprofit organizations. By linking funding to performance, these grants aim to promote accountability and ensure that resources are used effectively to drive positive change in communities and sectors like education and public health.