2. "They use it as income so they can continue pursuing their craft" In response to Reply # 1
That's the whole point of the grant -- to encourage creative people to continue their work and live up to their promise. I would alternately cry and shit myself if I ever received that reward as a writer lol.
Meanwhile, I read that the novelist Edwidge Danticat used some of her grant money to help victims of the Haiti earthquake, which makes me love her all the more.