There is therefore now no condemnation for those who are in Christ Jesus. Romans 8:1
Between grace and gift there is this difference. Grace actually means God's favor, or the good will which in himself he bears toward us, by which he is disposed to give us Christ and to pour into us the Holy Spirit with his gifts. The gifts and the Spirit increase in us every day, but they are not yet perfect since there remain in us the evil desires and sins that war against the Spirit. Nevertheless grace does so much that we are accounted completely righteous before God. For his grace is not divided or parceled out, as are the gifts, but takes us completely into favor for the sake of Christ our intercessor and Mediator. And because of this, the gifts are begun in us.
Luther's Works 35:369-70
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