​APPENDIX 3: GLOSSARY

501(c)(3). 501(c) is the section of the Internal Revenue Code that authorizes and defines most tax-exempt organizations, which must be organized and operated for a public purpose. The 501(c)(3) is the most common type of not-for-profit designation. Contributions to a 501(c) organization are tax deductible.

990, 990-PF. Federal tax form used by foundations and public charities (including nonprofit organizations). Available at the Foundation Center Online, these forms usually include lists of foundation grants that have been made during the current tax year and sometimes indicate grants that have been committed for the following tax year.

Abstract, executive summary. A brief (half a page to no more than two pages, depending on funder) summary of the entire proposal, including a sentence or two each on the applicant’s history and capability to administer a grant, the need for the proposed program, the objectives, a description of the program and any partners, the expected outcomes, and methods of evaluating the program.

Administrative overhead, indirect costs. A portion of a grant or contract that may be used for nonprogrammatic costs, usually set by a funder as a percentage of the total grant. (See also General operating funds.)

Advisory committee, advisory board. A panel of representatives from all interested organizations and groups in the community who are concerned with a particular program and will help design, support, and oversee it.

Anecdotal information. Informal reports that document or describe, without statistics, conditions that demonstrate a need or that demonstrate the impact of a program on clients. Anecdotal information usually includes compelling stories of individual program ​participants (e.g., an elderly person who has to choose between heating her home and the medication she needs; the low-income mother who loses her job because she has to stay home to take care of her children during school vacations; the formerly homeless family that now has a home; the child with dyslexia who is now thriving in school).

Annual report. A report issued by an organization (including businesses, foundations, and not-for-profits) that provides a description of its activities during the year and a financial report of its income, expenses, and current status. For grant seekers, foundation annual reports may be a valuable source of information about a foundation’s priorities and interests.

Appropriations bill. Congressional legislation that approves spending for a particular federal agency or group of agencies.

Audit. A detailed financial analysis performed by an independent accountant at the end of an organization’s fiscal year, or by a funding agency at the end of a major project grant, to assure the public (or the funder) that the organization has handled its money appropriately and in accordance with proper accounting procedures. For not-for-profit organizations, a program audit also assures the funder that the grantee has spent the money in the manner promised in the application.

Best practices. Within a given field, the theories and activities that have been demonstrated to be successful in addressing problems and issues in that field. Programs that have been successfully tested and may be replicated elsewhere.

Bidders’ conference, proposers’ conference, technical assistance conference. A meeting (or series of meetings) convened by a grantmaker, usually (but not always) a government agency or large national foundation, to discuss a particular funding opportunity and to provide prospective applicants with answers to questions. Normally, questions and answers are compiled and distributed to every prospective applicant, including those who are unable to attend. Increasingly, questions and answers are published on the ​agency’s website. Some bidders’ conferences are held by teleconference to allow a wider audience (and to save the costs of travel for the grantmaker’s staff).

Block grants. Funds distributed by the federal government to a state or city for broad purposes (e.g., community development block grant), allocated based on population.

Board of directors. Every established not-for-profit organization has a board of directors responsible for setting policy and ensuring fiscal stability. The list of directors, their business affiliations, their home addresses, and any other affiliations should be kept up to date for inclusion in most grant proposals. Many funders expect that the board will reflect the community’s population; most funders also expect that all members of the board will make at least a small financial contribution. (See also Development, board.)

Boilerplate language. For grants purposes, boilerplate language refers to standard descriptions about an organization or a program that can be kept on file and essentially pasted into a proposal with minimal adaptation for the new purpose. Boilerplate may include, for example, a description of the agency’s history, descriptions of its ongoing programs and its key staff members, a description of awards and honors received by the organization or its key staff, the equal opportunity statement and other personnel matters, and similar topics that don’t change significantly from proposal to proposal. Note the phrase “minimal adaptation” above, and keep in mind that the boilerplate may need to be modified to address the interest of a particular funder, as when the proposal writer deletes or significantly abbreviates descriptions of programs for the elderly when preparing a proposal for youth services.

Budget, operating budget. A fiscal plan for an entire organization (usually annual) or a specific program that includes an itemized list of anticipated income (revenues) and expenses. For proposals, the budget must reflect as closely as possible the activities and staffing described in the narrative.

​Budget line. An item (line) in a budget (e.g., one supervisor at a specified salary, four teachers at a total hourly cost for a year, travel, books, software).

Budget modification. A formal change in the way grant funds are scheduled to be spent, occurring after the initial approval of the budget by the funding source, with the approval of the funder. Primarily required for government grants and usually described in a standard form required by the funder.

Budget narrative, budget justification. A verbal description of each line item in the budget, describing how the amount was calculated and how the item relates to the program. Almost all government grants require a budget narrative. Most foundations do not require it but should be able to see clearly, even without a separate narrative, exactly how the budget costs relate to the activities to be provided.

Business plan. Similar to but more comprehensive than most proposals, this is a written plan that lays out the need in a community; goals of the business in addressing the need; the capacity of some members of the community to pay for a proposed service (the market) and a marketing strategy to reach them; an analysis of any competing programs or businesses; a program plan including activities to be undertaken to provide services to paying clients, time frames, and staffing; and financial projections of income and expenses to create and maintain the business. It also may include plans to provide services to those who cannot pay, showing how the paying clients will cover these costs.

Capacity, organizational. The organization’s ability to manage a grant and ensure that the funded program is implemented successfully. Most grantmakers want to hear about the organization’s management structure, the background and qualifications of the managers and people who will run the program, and how the board of directors oversees the agency. The term also includes fiscal systems that are sophisticated enough to handle the large amounts of money in some government grants and the required ​financial reports that must be submitted. A description of capacity may also include resources like space, volunteers, equipment, supplies, and other assets that will be used in support of the proposed program.

Capital funding. A grant or donation to assist in the construction or renovation of a building or space in a building, or the acquisition of equipment. Generally reflected in a capital budget separate from the operating budget.

Catalog of Federal Domestic Assistance (CFDA). Until recently, a resource that listed all new, existing, and past federal programs. Each federal grant program has a CFDA number that is to be entered on Standard Form 424 (SF-424), the federal cover sheet for the proposal and budget. Although you may still see this term (and the CFDA number still must be entered on the SF-424), at this writing the functions of the CFDA are being phased out by a new database called System for Award Management (SAM), currently reached at beta.SAM.gov. Once this is in place, you will need a DUNS number in addition to the CFDA number. (See also DUNS number, SAM.gov.)

Certificate of incorporation. A document spelling out the organization’s purposes and powers in accordance with the laws of a particular state, and filed with the designated office of the state (normally the secretary of state or department of state). When it is filed, the state issues a filing receipt confirming that the organization has legally come into existence. A copy of the certificate of incorporation usually must be submitted with proposals.

Challenge grant. A grant offered by a funder to encourage other grantmakers or individuals to support a particular program or organization. Payable only if other funds are obtained in an amount specified by the donor. (See also Matching grant.)

Collaboration. Two or more individuals and/or groups jointly working out an approach to a problem that is of mutual concern, and developing solutions that make the best use of the strengths of each partner.

​Common grant application form, standard application form. Although most foundations now prefer to use their own guidelines or proposal format, the common application form is still used by groups of foundations in a regional association of grantmakers in a given area. It lays out the information, format, and attachments that must be provided by a grant applicant to any of the participating grantmakers. (See also Regional association of grantmakers.)

Common report form. A reporting format required or accepted by a group of grantmakers in an area, usually developed through a regional association of grantmakers. It spells out the information required from an organization submitting an interim or final report on a grant.

Community-based organization (CBO). Any nonprofit organization that is located in a defined geographic area and that has been established to serve residents of that specified area. In contrast, citywide, countywide, or national nonprofit organizations work in large geographic areas, serve a national constituency, and/or focus on specific issues or populations (e.g., the American Heart Association, AARP, Girl Scouts of the USA, Lighthouse for the Blind and Visually Impaired).

Community foundation, community trust. A foundation established for the purpose of managing funds for the benefit of the community in which it functions. Community foundations are designated as public charities by the IRS because they raise money from the public each year. Support is provided by individuals who, either during their lifetimes or after their deaths, want to benefit their particular town, city, or region, but either cannot afford or prefer not to establish a separate foundation. Because donors can specify the areas in which they prefer that grants are to be made, community foundations usually have several diverse priorities for grants and are often a good place to start exploring funding opportunities. Community foundations differ from place to place, but they share several characteristics: a mission to ​enrich the quality of life in a defined geographic area, and service to three constituencies—their donors, charitable organizations, and the community at large.

Competitive grant. A grant awarded by a government or private funder through a competitive screening process, such as a request for proposals or notice of funding availability, after proposals have been scored by independent reviewers.

Corporate foundation, company-sponsored foundation. A separate, independent foundation created by a large business with funds from the business itself. In most cases the foundation functions like other foundations, receiving proposals and making grants, but giving may be somewhat more tied in to the corporation’s own goals. For example, a drug company’s foundation may give for medical research; a bank’s foundation may give for community development.

Corporate giving program, corporate philanthropy. A grantmaking program established and administered within a business by its own staff and allocated from its own annual budget. Grants go directly to charitable organizations from the corporation. Such programs usually are funded with pretax income, and grants may be even more closely tied to business objectives than are grants from a corporate foundation.

Corporate sponsorships. Direct giving from a corporation to a not-for-profit organization that brings publicity and recognition to the sponsor. Sponsorship can range from support of a Little League team that wears T-shirts with the corporate logo to support of public television with announcements of sponsorship that may be indistinguishable from commercial television advertising. It may include activities such as the purchase of greetings in an organization’s fundraising journal or of tables at a fundraising event, in-kind gifts (e.g., computers, food, or furniture), and other assistance.

Curriculum vitae, CV. (Latin for “the course of life.”) A detailed, usually chronological, and often lengthy description of an individual’s ​work, including employment and research or academic experience, advanced degrees, publications, honors, and other information that presents the individual as an accomplished professional in one’s field. Normally used for academic or research purposes. Compare with résumé, which may include similar information but is generally much shorter (one to two pages), focused on employment and concrete skills, and in outline form.

Demographics. The description, usually numerical, of a population in terms of characteristics such as age, sex, income, race and ethnicity, and national origin. In a proposal it usually is important to describe the demographics of the program’s target population in order to provide the reader with an understanding of why the program is critical.

Demonstration project. A project designed (and funded) to determine the viability of new or promising programs or ideas.

Determination letter. A letter from the IRS acknowledging that an organization is eligible for tax-exempt status.

Development. The term development is used for most fundraising activities, including foundation research, proposal writing, and all other strategies for bringing money into an organization. These may include, for example, annual and special appeal letters, events such as street fairs, gala dinners, bazaars, benefit golf outings, alumni gatherings, and so on. In very small organizations any such strategies are implemented by an executive director, a board member or committee, or, perhaps, a single staff member devoted to fundraising. As organizations grow, their development departments also grow and become more specialized.

Development, board. Board development is the formal or informal process of training board members in their role as overseers of the organization and their fundraising function. It may be done by experienced board members, the executive director, or an outside board-development consultant.

Direct costs. All budget items that directly support a program, including the salaries of staff and other-than-personnel-services ​costs such as materials, supplies, travel, and equipment. (See also Administrative overhead, indirect costs.)

Discretionary spending, discretionary grants. All resources that are available to support government functions, purchase goods and services, and issue grants to other entities after debt service and entitlement payments. At the federal level, discretionary spending includes the military, homeland security, education, the IRS, the FBI and CIA, and all other government agencies and programs and their grantees and contractors. (Compare with Formula grants, which are based on the number of individuals in an area eligible for a particular funding source; see also Entitlements.)

DUNS number. Dun & Bradstreet assigns a number (a Data Universal Numbering System number) to every organization that applies. Required for all federal applications and increasingly requested by other government funders. Apply online (http://fedgov.dnb.com/webform for an expedited response). Dun & Bradstreet also can be reached at 844.241.1775.

Earmark. For grants purposes, the inclusion in a government budget bill of a specific amount of funding for a project supported by an elected official. Also called “pork.”

Employer identification number (EIN). The EIN is the organizational version of an individual’s Social Security number. The organization receives the EIN from the Internal Revenue Service. The EIN is required to open an organization’s bank account and must be included in all government and many foundation applications.

Entitlement grants, entitlements. Various federal laws specify benefits that must be paid to all individuals who fall into a certain class. Examples are Social Security, Medicare, and Medicaid. Entitlement benefits may be paid directly to individuals (Social Security) or through states and localities that receive formula grants for the purpose (Medicaid).

Entrepreneurship, social entrepreneurship. See Social enterprise.

Evaluation. A detailed plan for measuring a program’s effectiveness and its impact on program participants or the community. The plan ​describes the kinds of data that will be gathered, the methods for gathering it, and the ways the data will be analyzed and reported.

Executive summary. An overview of a document such as a report or proposal. Often longer than an abstract, it may be distributed in place of the primary document to the public or to specific interested parties.

Family foundation. A family foundation is an independent foundation (see below) in which the trustees, directors, officers, or other decision-makers are members of the family of the original donor, and may be donors themselves. Although some family foundations are very large, use outside trustees, and/or employ professional staff in addition to family members, most are fairly small, and decisions about grants are made by members of the family.

Federal Register. The publication where federal grant announcements such as NOFAs, RFAs, RFPs, SGAs (solicitations for grant applications), rules and regulations, and other notices can be found. Published daily by the Government Printing Office as a paper copy or microfiche, available at or obtainable by libraries, and online in an electronic format that is easily searched by keywords or by agency or topic (https://www.federalregister.gov).

Federated funds. Federated funds raise money each year to support nonprofit organizations. Examples include United Way, Federation of Protestant Welfare Agencies, Federation of Jewish Philanthropies, and local, state, and federal employee campaigns.

Fees, fee for service. Requested or required donations from participants in a given program. At senior centers, voluntary fees may be requested for meals; fees may be required for activities that use outside specialists or consultants, such as exercise or yoga specialists. Fees may cover some or all costs for day care, college prep programs, and so forth. Fees may be required for any programs not funded through grants or contracts, or to supplement such programs when permitted by the funder. Fees may be subject to a sliding scale if participants cannot pay.

​Fiscal conduit. An established 501(c)(3) organization that administers a grant for an individual or an organization that is not incorporated or does not have tax-exempt status, or for some other reason is not able to receive a foundation or government grant. The fiscal conduit is responsible for managing and reporting on the money and usually receives a small portion of the grant to cover administrative costs.

Fiscal year (FY). A 12-month period of operation of a given organization under its annual budget for that year. The fiscal year may or may not differ from the calendar year, because an organization can establish its fiscal year for its own purposes. For example, the federal government’s fiscal year begins on October 1 and runs through the following September 30. Nonprofit organizations that receive most of their funding from a federal agency may designate the same fiscal year as that entity. The fiscal year is designated by the year in which it ends. A fiscal year starting on July 1, 2019, is called Fiscal Year (or FY) 2020.

Focus group. A group of individuals brought together to discuss an issue. This is a research method often used in marketing to determine a sales strategy. In preparing a proposal or reporting on a program, it is a method that is used to determine the needs and wishes of a target population for the program or to assess the effects of the program on that population.

Format. In grantsmanship, the physical presentation of a proposal, including layout, type size, line spacing, and so on. Whenever an application package or guidelines specify elements of the proposal format, the instructions are to be followed precisely.

Formative evaluation. See Process evaluation.

Formula grant. Federal government funding to states and major localities is based on formulas that account for the number of individuals who are entitled to that funding. They may be based strictly on total population, or they may be based on the number of individuals in specific categories: elderly, youth, people ​with disabilities, and so on. This kind of funding also is known as “entitlements.”

Fringe benefits. In a budget, personnel costs above the basic salary, such as vacation, health and dental benefits, unemployment insurance, the employer’s share of Social Security contributions, and other benefits. Usually calculated as a percentage of the base personnel costs. Full-time and part-time staff may have different fringe benefit levels, which should be shown in the budget and described in the budget narrative.

Funding opportunity announcement (FOA). A term in current use at Grants.gov, announcing the availability of a federal grant or contract. (See also Notice of funding availability (NOFA), Request for proposals (RFP), etc.)

Funding priorities. Funding priorities are activities that a government agency states in a request for proposals that it intends to fund in a given year. If the RFP states an absolute priority, only proposals that address that priority will be funded. If the RFP describes a competitive priority, applicants addressing this priority may receive additional points during the review process, but they are not required to address it. For invitational priorities, applicants are encouraged to address certain issues, but they do not receive preference over applicants that do not do so.

Funding streams, income sources. Government income is generated from tax-levy revenues, including property taxes, income taxes, and sales taxes. Funds for capital purposes such as buildings, roads, and mass transit generally are raised through bond issues. Funding from higher levels of government may come through block grants, program grants, or formula grants.

General operating support, general operating funds. Also called unrestricted funds, this refers to support for the organization as a whole and for any purpose that furthers the organization’s mission. In practical use, it pays for costs that can’t be allocated to specific programs. Examples include some portion or all of the costs of secretarial support, rent, building security and maintenance, ​development staff, a fiscal manager, insurance, and auditing costs. General operating funds may come from a line in the budget called administrative overhead, set at a percentage of the total budget by a grantmaker. Because the administrative percentages allowed often do not cover all overhead costs, general operating funds or unrestricted funds usually must come from individual donations to the organization or from fees or some type of business income. Some foundations also provide grants for general operating support.

Goals. Goals are broad intentions, which may not be measurable (unlike objectives, which are measurable) and, in fact, may never be met. They are the desired, long-term purpose (e.g., ending hunger, improving education) of the program or the organization.

GPO, US Government Printing Office. Publishes the Federal Register, the Congressional Record, congressional bills, the Economic Report of the President, and many other reports and databases, which are available to the public in print and online.

Grant. An award of money or, more rarely, goods or services to accomplish a purpose defined by the grantmaker.

Grantmaker. Any entity that gives grants, including a government agency, foundation, or federated fund. This also includes not-for-profit organizations (like federations) that receive grants and then re-grant them to smaller not-for-profits.

Grassroots organization. Small, local groups like block and tenant associations, neighborhood-improvement groups, and merchants’ associations. Usually led by one or more community residents without a formal organization structure. A grassroots organization usually raises money from dues or contributions given by neighborhood residents, or through group fundraising efforts such as raffles, bake sales, and so on. It also may receive contributions or in-kind goods from local businesses, or may win grant funding as part of a collaboration or through a larger organization that serves as its fiscal conduit.

Guidelines. Broad or detailed specifications published by grantmakers to describe eligible applicants and to alert prospective ​applicants about the programs and activities that the grantmakers will fund.

Independent foundation, private foundation. A fund or endowment whose primary function is to make grants. Unlike federated funds and some community foundations, independent foundations normally do not raise funds or seek public financial support because their assets are in endowments. Unlike family foundations, independent foundations are not controlled by the original donor or the donor’s family. Nevertheless, their guidelines often do reflect the intentions or wishes of the original donor. Some of the largest independent foundations began as family foundations.

Indirect costs. A percentage of total program costs allowable to pay for overhead costs, such as lighting, heat, and wear and tear on equipment, for example. (See also Administrative overhead.)

In-kind contributions. Goods and services that are donated to an organization or one of its programs. Volunteer time is an in-kind contribution; so is food, equipment, space rental, and even staff or management time that are paid for by other programs or absorbed by general operating funds. All available in-kind contributions for a proposed program should be shown in the budget and described in the narrative.

Institutionalization. The permanent or long-term support for or absorption of a particular program by or into another entity in order to sustain it after the end of a grant period. A program may be institutionalized if its support is taken over by a larger nonprofit or local government organization, a business enterprise, a council of churches, or any another entity. (See also Sustainability.)

Job description. Specification of the responsibilities of a particular staff position and the qualifications required for the job. Job descriptions should be created and updated for every current staff position and maintained in a file to facilitate both proposal preparation and advertising to fill the position when vacant.

Key staff. Those managers and staff who are critical to an agency’s functioning or the implementation of a particular program.

​Letter of commitment. See Memorandum of understanding.

Letter of inquiry. A letter to a foundation exploring the possibility that the foundation will consider a grant for a particular program. For some foundations this is the preferred initial approach; for others it is a way for unknown not-for-profits to introduce themselves. In some cases, the foundation has published guidelines for a letter of inquiry. In all cases, the letter should be treated as a miniproposal, with a brief statement of the need to be addressed, the objectives of a program to address the need, a capsule description of the program, the outcomes to be expected, and the cost.

Letter of intent. A letter to a foundation or government agency indicating an intention to apply for a particular grant. Sometimes requested by a grantmaker specifically for the purpose of determining how many proposals will be received and therefore how many reviewers they will need to hire. Unless otherwise specified, a letter of intent is not a miniproposal; it is a short, to-the-point notification of an intent to apply for a grant.

Letter of support. In the past, a letter from an individual or agency in a community that provided, in effect, a reference for a proposal applicant. It includes a broad and general statement of knowledge of and support for the organization. Most funders no longer accept or review support letters. Instead, they insist on linkage letters, letters of commitment, or memoranda of understanding (see below).

Linkages, linkage letters. Linkage is the term used to describe relationships between and among organizations working together within a community. Linkages tend to be routine and ongoing rather than project oriented, as when a hospital arranges for home care services for patients at discharge or when a school provides space and security for an after-school program run by a nonprofit organization. Partners may refer clients to one another, place staff from one agency at other agencies’ sites to provide services that are not provided at those sites, offer training to staff of partner agencies, and work together to assist clients in other ​ways. For grants requiring collaboration, linkage letters spell out the arrangements in detail.

Local education agency (LEA). The government agency responsible for education in a given community. It may be a school board, a school district, a department of education, or, for some funding sources, a single school.

Logic model. A systemic narrative or visual way of presenting the relationships among all the resources you have to run your program, the activities you plan to conduct, and the outcomes you hope to achieve. This model is popular with many nonprofits and grantmakers.

Match. An amount or percentage of the total budget that a funder may require an applicant to commit to a program if it is funded. The match can be an in-kind contribution of goods and services, cash (including program fees when appropriate), or a combination of both. The funder makes the determination of what is acceptable.

Matching grant. A grant that is made specifically to match or supplement funds provided by another donor, usually as a specified proportion of the total program cost. Often provided as a challenge grant and paid on the condition that the other funds are obtained.

Memorandum of understanding (MOU). A letter, signed by an authorized representative of each organization, from each partner in a collaborative project, specifying the activities and services that the partner will provide and the expectations the partner may have from the other partners and from the grant itself. This should be thought of as a brief contract that will take effect if a grant is awarded. Depending on the complexity of its contents, an MOU may need to be reviewed by a lawyer before you sign it.

Mission creep. An unintended loss of focus on an organization’s stated mission when it pursues funding that is not appropriate to the mission just because the money seems readily available.

​Mission statement. A brief, focused statement of an organization’s reason for being; its overall purpose. The mission is the context in which all the organization’s programs operate and for which the programs exist.

Needs assessment. Qualitative and/or quantitative documentation or data organized to demonstrate issues, needs, or problems in a community. This may be as simple as a description of the waiting lists for services at an agency or as elaborate as a statistical analysis demonstrating that the target population experiences more of a particular problem (e.g., crime, drug use, the proportion of teenagers or the elderly with no place to go) than other communities.

Needs statement, problem statement. The section of a proposal that lays out the issues, needs, or problems that a program will address. Normally proposals to government agencies require greater documentation of the problem (crime, substance use, children with asthma, lack of services for youth or the elderly) and demographics of the community (race, ethnicity, income and poverty level, etc.) than do proposals to foundations. Depending on the funder, the needs section also may include research from “the field” and may put your community’s problem in the context of the town or city as a whole, as well as your state (and sometimes country).

NOFA. See Notice of funding availability.

Not-for-profit organization. An organization of any size that is incorporated under the laws of the state in which it operates and has been granted tax-exempt status, usually under Section 501(c)(3), by the US Internal Revenue Service. It must have a board of directors, elected officers, and approved financial procedures for managing grants and reporting on expenditures. Known informally as a nonprofit organization.

Notice of funding availability (NOFA). A formal, published announcement by a grantmaking entity, usually a government agency but sometimes a large foundation, that it will accept applications or proposals for a specific purpose detailed in the ​announcement. (See also Funding opportunity announcement, Request for proposals, Request for applications.)

Notice of proposed rulemaking. A notice published in the Federal Register that outlines proposed rules and priorities for certain programs or funding opportunities, and that invites the public to comment on them by a certain deadline.

Objectives. Clearly defined and measurable results (outcomes) that a program is intended to achieve.

Organization chart. A diagram of an organization’s structure, showing its internal lines of responsibility and reporting relationships for all departments and programs. Large organizations also may maintain organization charts for individual departments or programs.

Other than personnel services, other than personal services (OTPS). All budgeted costs of a program that do not relate to staffing costs. This budget category may include items such as rent, equipment purchase or lease, consultants, supplies, postage, utilities, and so on.

Outcome, outcomes. The intended, measurable result or results of a program, usually spelled out in objectives.

Outcome evaluation. A process of determining, usually through formal, quantitative research methods, whether and to what extent a program has achieved the results (outcomes) that it set out to achieve. Assesses what a program accomplishes. May require an external evaluator using sophisticated analytic approaches and control or comparison groups that do not experience the program. Also called summative evaluation.

Personnel services, personal services (PS). The section of a budget relating to staffing costs. Each position is shown with the full-time or part-time base yearly or hourly salary for that staff member, and, depending on the application format, the number of hours and proportion of the cost allocated to the proposal request or to other sources. Includes fringe benefits, which are shown on a line separate from the base salaries.

​Private operating foundation, operating foundation. This type of private foundation provides charitable services or runs research, social welfare, or other charitable programs of its own. Private operating foundations make few, if any, grants to outside organizations.

Pro bono. (Latin for “for the good.”) Often refers to legal services provided for free to an individual or organization but may apply to any volunteered professional help.

Process evaluation. The application of (usually qualitative) research methods to determine whether a program is being implemented in the way in which it was intended to be implemented (e.g., whether it is using the activities it said it would use, deploying staff in the ways it intended, serving the number and type of participants in the way it intended) and providing feedback to program managers to take corrective action. Also called formative evaluation because it helps shape the program. Process evaluation provides a way to understand why outcomes are achieved or fail to be achieved.

Program evaluation. Systematic documentation and analysis of indicators demonstrating that a program has achieved its objectives or intended outcomes. May include both outcome and process evaluation components but need not be complex or formal unless required by the funder.

Program officer, grants officer. The staff member of a funding organization who receives grant proposals and processes applications for a government agency or a foundation’s board of trustees.

Program plan. Detailed description of the program’s functioning, including activities, time frames, staffing plan and job descriptions, and costs.

Project period. The total time for which support of a project can be approved by a funder. A project period may last for one or more years. If there is a multiyear project period, each year’s renewal of the grant probably depends on program performance during the previous year.

​Public foundations, public charities. Public foundations raise a significant portion of their resources from a broad cross section of the public each year and redistribute it in grants to nonprofit organizations. Public charity is the designation used by the IRS for an organization that raises funds from the public. Community foundations normally are public foundations.

Regional association of grantmakers (RAGs). As the name indicates, most areas of the United States have a regional membership association that includes many (but usually not all) of the foundations and corporate grantmakers in the area. Some publish membership directories, common application forms, and other information about their members and are a good reference source for grant seekers.

Request for proposals (RFP), request for applications (RFA), solicitation of grant applications (SGA). A document issued by a public or private funding agency, inviting qualified organizations to submit a proposal for a specific funding opportunity. (See also Notice of funding availability.)

Resource mapping. Also called community asset mapping, community inventory, or environmental scanning. Identifies resources and assets available in a community. Among other purposes, enables strategic use of existing resources, facilitates partnerships, identifies gaps or needs for additional resources, and avoids duplication of services.

Reviewers, readers. Most federal proposals and many submissions to state and local government agencies and national foundations are read and scored by outside professionals, called reviewers or readers, acting as outside consultants to the funding agency. Reviewers are selected for their background in the relevant field (e.g., educators or directors of youth programs for proposals affecting children and teenagers; health care professionals for proposals in that field). Normally reviewers will not read proposals from their home state or region.

​Reviewers’ comments. Most federal agencies and some foundations make available to an applicant (usually only on request) the scores for that proposal, which are provided to the funding agency by the outside readers. The reviewers’ names are removed but all comments explaining the scores are shown.

SAM.gov (System for Award Management). SAM is a vast new database managed by the federal General Services Administration (GSA). If you receive a federal grant, you will need to register with SAM. Note that functions of the Catalog of Federal Domestic Assistance have been merged into SAM. Also note that the current address for most information is beta.SAM.gov, which will simply become SAM.gov when the integration of planned functions is complete.

Seed grant, seed money. A grant that is made to start a program, with the intention of leveraging other support to sustain it.

SF-424, Standard Form 424. This serves as a cover sheet for a federal grant application. Information to be filled in on this form includes organization name and address, contact person, name of federal program, CFDA number, name of your project, total budget request, and other items. Sometimes a federal agency will substitute a designation such as ED (Department of Education) in place of the notation SF, but the form is the same.

Site visit. A visit by a funding agency or foundation that is considering giving a grant to an applicant. It gives the funder a chance to assess the accuracy of descriptions in a proposal and to ask additional questions that may help determine whether the agency can manage the grant and accomplish its objectives.

Social enterprise, social entrepreneurship. Business enterprises developed in support of a nonprofit organization’s mission that also can bring in unrestricted funds for the organization. An example would be an organization engaged in workforce development that started a bike-rental business or bike shop to train participants to work in and run a business.

​Stakeholder. A term applied to any party with an interest in a particular program or who may be affected by the program. In a school program, stakeholders may include parents, faculty, the children themselves, the administration, nonprofit organizations, and local businesses.

Summative evaluation. See Outcome evaluation.

Sustainability. The prospect that an organization will be able to keep a program going (sustain it) after the end of a particular grant. Increasingly a concern of grantmakers at all levels. Applicants should be able to show what resources they expect will be available to sustain the program or how they will work toward that end. Many funders look approvingly at social entrepreneurship as a way of diversifying funding and adding to the organization’s ability to sustain its programs. (See Social enterprise.)

Tax-levy funds. Revenues raised through taxes of all sorts (income, sales, property, and other taxes) by government at the local, state, and federal levels to support ongoing operations of the government.

Technical assistance, technical assistance provider. Services provided to organizations to teach or assist them with proposal writing and other fundraising; program planning; organization development and management; financial planning; legal issues; marketing; and other operational matters. May be provided by nonprofit or for-profit organizations, individual consultants, or some grantmakers themselves. Some funders give grants specifically for technical assistance.

Timeline. A chart or narrative showing the month-by-month time frame for the beginning, implementation, and end of each program activity. Some timelines also show activities by each staff person responsible.

Trustee, director. A foundation board member or officer who is responsible for the fiscal well-being of the foundation and for ensuring that the donor’s wishes are carried out in the foundation’s grantmaking activities. In larger foundations, trustees may ​depend on professional staff to recommend grants, but the trustees are the ultimate authority.

Unrestricted funds. Money donated by individuals or businesses, or given in general operating grants, to further the mission of an organization. May be spent for any organizational priority or need. Depending on the funder or program, fees for service may or may not be unrestricted.

Waiting list. List of potential users of a service who have requested the service but cannot be accommodated at a given time. In the grants world, waiting lists are one important way to document the need for a particular service.