501(c)(3) – the Internal Revenue Service tax code that defines nonprofit charitable tax-exempt organizations.  Contributions made to 501(c)(3) organizations are tax-exempt for the donors.

Abstract – A summary of your request.

Accessibility – whether services or programs can be reached or obtained by those who need them.

Activities – what must be done to run the program and meet objectives.

Administrative action – a post-award request to alter grant conditions.

Administrative costs – all direct and indirect costs associated with a grant.

Advisory board – a group of individuals who notify, inform, or provide direction but who do not oversee the grant.

Annual report – financial data and descriptions of grants awarded by a corporation or foundation.

Applicant – a person or entity submitting a grant application.

Appropriations legislation – Congressionally approved level of annual funding for a grant program.

Audit – examination of grant records and financial accounts for accuracy and legal compliance.

Board of Directors – a group of advisors responsible for oversight.

Boilerplate – standard, informational text used on a recurring basis.

Budget – A clearly defined list of expenses that will be met by the funder as well as those covered by the applicant or a third party funder.

Budget period – a period of time designated for the program or project.

Capital support – funds used for construction, buildings, equipment or endowments.

Challenge grant – a grant which requires the receiver to raise additional funds from other sources. Also known as a “matching grant.”

Community Foundation – a 501(c)(3) agency that awards grants within a particular community.

Concept paper – the preferred method of first contact to foundations, a concept paper gives information about the applicant, target populations, need, goals, budget, matching funders if any, and what makes the project special. Concept letters should be no more than three pages in length.

Contact person – represents the grant program funder.

Continuation grant – extended funding after the initial budget period.

Corporate Foundation – a private foundation generally funded by a for-profit business that operates independently from the parent company.

Corporate Giving Program – a grant-making program created and run by a for-profit company.

Cost-Benefit Analysis - compares program operational expenses to the benefits it produces.

Data - a collection of specific information, for example: number of students receiving scholarships, income level, race, etc.

Deadline – date by which the funder must receive your grant application.

Deliverables – grant outcomes, such as: increased access to healthcare, construction of a facility, etc.

Design – a description of your plan to measure outcomes and how these outcomes will be used.

Discretionary funds – grantor has the ability to select funding criteria consistent with the agency requirements.

Distribution committee – group of individuals who make grant decisions.

Direct costs – specific expenses of the project or program.

Donor - individual or organization that awards a grant or gift to the donee.

E-Application – electronic grant application system.

Education foundation – a private, non-profit corporation that is legally independent from an educational institution.  Such foundations act as a liaison between the school and the community or a fiscal agent between a school and a funder.

Endowment – permanent financial support invested by a university create income to support operations or programs.

Evaluation  - A plan to find out whether goals were met and methods were followed.

Funder – the foundation, corporation, trust, or governmental entity that awards grants.

Funding cycle – a timetable of activities surrounding the grant process. These can include the grant announcement, application deadline, application review, grant award date, and release of funds.

Funding priorities – the particular areas an agency is interested in funding. For example, expanding access to the arts, ending hunger, scholarships, etc.

Future funding – a plan for continuation of funding beyond the grant period.

Goals – statements that illustrate what your program/project/organization is trying to achieve and establish a direction for program priorities.

Grant seeker – an individual or organization applying for a grant.

Grant period – the lifetime of a grant, from the date it becomes effective to when it expires.

Grantee – the recipient of a grant award.

Grantor – a foundation, corporation, or government entity that awards grants.

Guidelines – procedures established by a funder that applicants must follow.

Independent foundation – an IRS-classified private foundation which may include private non-operating foundations, special or general purpose foundations, or family foundations.

Indicators – measurable factors which demonstrate whether program efforts are effective.

In-kind – a donation of supplies, equipment, staff time, use of office space, or other resources as opposed to a monetary donation.

Indirect costs – administrative expenses of a grant such as utilities, rent, maintenance, depreciation, and staff salaries.

Indirect Cost Rate – a federal or state negotiated portion of a grant which allows an organization to reimburse itself for indirect costs associated with a grant program or project.

Introduction – the portion of a proposal that establishes the applicant’s qualifications.

Letter of Inquiry/Letter of Intent – a brief letter explaining an organization’s activities and its request for funding. This is sent to a prospective donor to find out if a proposal should be submitted. Many grantors prefer to receive the letter of inquiry before receiving a full proposal.

Letters of Commitment – correspondence from partner organizations that commits money, services, or other resources to the applicant’s grant project.

Letters of Support – correspondence from outside individuals, organizations or agencies stating support for the applicant’s program or project. 

Matching funds or cost-share – non-federal money required by some grantors to cover costs not covered by the grant.  Grant applicants must contribute these funds.

Matching grant – a grant from a grantor made to match funds from another grantor or donor.

Nonprofit – a designation provided by the state to corporations whose board members receive no compensation from its activities.

Objective – a clearly defined statement that explains how a goal will be met. Objectives use quantifiable language and are time-limited.

Operating support – a grant which advances the work of an organization, rather than funding a particular project. Also known as an unrestricted grant.

Outcomes – results you expect to happen as a result of implementing your program, project, service or activity.

Outcome evaluation – an assessment of the results expected from program activities.  These are compared against results across a sampling of the target population. Also known as impact and summative evaluation.

Outreach – efforts made by program staff to persuade the community to use program services.

Partnerships – organizations that collaborate to meet goals.

Private foundation – a nonprofit, nongovernmental organization whose funds and program are managed by trustees or directors.

Problem statement – explains the needs that will be met or problems that will be solved when funding is secured. Also known as a needs assessment.

Project period – a timeframe during which a grantee is expected to finish a project.

Proposal – a written application, which may include supporting documents, submitted to a corporation and foundation when requesting a grant. Applicants should review grant guidelines before preparing a proposal.

Public charity – a nonprofit organization qualifying for tax-exempt status under section 501(c)(3) of the IRS code. While some public charities award grant money, the majority are grant recipients.

Request for Application (RFA) – information required for non-competitive grant programs.

Request for Proposal (RFP) – a request for applications from prospective grantees.  Organizations will sometimes also use RFPs to seek professional service providers.

Reviewer – a person who reviews and evaluates proposals.  Reviewers generally serve on a panel comprised of several other reviewers.

Seed money – a grant to fund a new project or organization.

Target area – a specific demographic area, such as a town, neighborhood, county, school district, or census tract.

Targeted population – a group of people who will benefit from the project.

Tax-exempt – a designation exempting an organization from paying taxes.

Trustee – a foundation board member who helps decide how grant funds should be dispensed.  The trustee’s role may be large or small, depending on the size of the foundation’s staff.