There are many published sources for grants and fellowships, but there are a few that specifically focus on writers. Poets and Writers Magazine has a free searchable database of grants and awards for writers on its website; an ebook, "Grants for the Serious Writer" by C. Hope Clark, can be purchased on Clark's Funds for Writers website; PEN American Center has a database of grants and awards you can subscribe to for $12 per year, but a few listings with upcoming deadlines can always be found on its website. Never forget to check your state and local arts councils and your state and local humanities councils for any grants they may have for writers.
Several different kinds of grants are available. There are education grants in the form of scholarships, funds that pay for a portion or all of the cost of a workshop or conference, or fellowships that sometimes pay significant tuition costs at a university.
There are emergency grant funds for writers in financial crisis. There are creative renewal grants, in which funds must be used for a writer to take a vacation or an inspirational retreat to re-energize her creativity. Research grants provide funds for writers to conduct either all or a portion of a research project.
Some grants award writers for work that is already completed. Others provide funding for writers to complete specific projects. Some grants provide funds for accomplished writers to educate others to be better writers by conducting workshops and writing classes.
There are different kinds of residencies for writers. Some just provide writers a free place to stay while they work on a project with no interruptions or distractions. Others want the writer to work on a project that will benefit the provider of the residency in exchange for the free stay and the prestige of the award.
Most grants reward writers who have already accomplished some work. Even grants that provide some support for emerging writers do not fund "wanna-be" writers who have yet to publish a story or article. Some grants have residency requirements---you have to live in a specific state or region in order to qualify for the grant funds. Some, such as research grants, may require certain educational degrees to have been achieved. Others are more interested in publication credits. For emergency funding, writers may need to prove financial hardship.
There is fierce competition for every grant. To avoid being disqualified, you must follow every rule precisely as it is specified in the grant-maker's guidelines. Complete every portion of the grant proposal, and do it to the best of your ability. Make certain you read the instructions carefully as many times as it takes to make sure you haven't missed anything. Following every instruction is critical if you want to receive grant funding.
If you are among the lucky people to receive a grant, there are responsibilities that come with the check in your hand. You must achieve whatever the grant is funding. If it is a fellowship or educational grant, you must attend the educational conference, workshop or courses the grant is funding. If the money is for the completion of a specific project, you must work to complete the project on time and make it the best work you possibly can. Some grants require writers to issue a report upon completion of the project or when the grant funds are spent.