Glossary of Grant Related Terms

501(c)(3)- The section of the tax code that defines nonprofit, charitable, tax-exempt organizations. 501(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations.

Audited Statements - An evaluation completed by an independent auditing firm of an organization's financial position.

Authorized Organizational Official – The individual designated by the District who is authorized to sign on behalf of the District indicating acceptance of the obligations imposed by the terms and conditions that apply to grant applications or grant awards.

Capital support - Funds provided for endowment purposes, buildings, construction or major equipment. Generally, capital expenditures are defined as those valued greater than $5,000.

Challenge Grant - A grant that is paid only if the receiving organization is able to raise additional funds from other sources. Challenge grants often are used to stimulate giving from other donors.

Common Grant Application - Grant application format that has been adopted by groups of grantmakers to allow grant applicants to produce a single proposal for a specific community of grantmakers.

Direct Costs – Costs that can be specifically identified with a particular project or activity.

Employer Identification Number (EIN) - A nine-digit number assigned by the Internal Revenue Service.  EIN is also referred to as the tax ID number.

General/Operating Support - A grant made to further the general purpose or work of an organization, rather than for a specific purpose or project.

Grantee – The organization awarded a grant legally responsible and accountable to the funding agency or donor for the performance and financial aspects of the grant-supported activity.

Guidelines - Procedures set forth by a funding agency that outlines the process for submitting grant applications.

Indirect costs, also known as Facilities and Administration Costs – Costs that are incurred by a grantee for common objectives and cannot be identified specifically with a particular project or program. 

In-kind contribution - A contribution of equipment, supplies, or other tangible resource as distinguished from a monetary grant. Some organizations may also donate the use of space or staff time as an in-kind contribution.

Letter of Intent to Apply - Most often seen with state or federal grant programs, these are used by funding agencies to predict the number of grant proposals that will be submitted in response to a particular grant competition.

Letter of Inquiry – Brief communication submitted by grant seekers to introduce their project and organization to a prospective funding agency. Frequently, these serve a dual purpose of requesting grant guidelines from an organization. Letters of inquiry generally are only 1 to 2 pages in length.

Letter of Request (or Proposal Letter) - Some private foundations and corporate giving programs prefer grant seekers submit funding requests in a simple letter format. These grant proposals generally are no longer than four single spaced pages. Though short, the elements required are the same as those for a full grant proposal.

Match or cost sharing – The value of third party in-kind contributions and the portion of costs of a project or program not financially supported by the grantor.

Matching Grant - A grant that is made to match funds provided by another source.

OMB – Office of Management and Budget – Office oversees the Federal government’s procurement, financial management, information, and regulatory policies, and issues Circulars A-21, Cost Principles, A-110, Administrative Principles and A-133, Audit Requirements applicable to educational institutions accepting federal funds.

Operating Support Grant - A grant awarded to support the regular personnel, administrative, and miscellaneous expenses of an existing program or project.

Pre-proposals - Used by funding agencies to screen and limit the number of full grant applications submitted. Pre-proposals contain all of the same elements of a full proposal; they just lack the detail. Generally, pre-proposals are five pages.

Principal Investigator/Project Director - The individual to whom the grant is awarded, and who is responsible and accountable to the grantee for the implementation and completion of the project or activity.

Program Officer - A staff member of a foundation who assists grantseekers submit proposals, reviews grant proposals, and processes applications for the board of trustees or agency.

Proposal - A written application, often accompanied by supporting documents, submitted to a foundation, corporate giving program, or government agency to request grant funding.

Quantitative Data - Data that can be conveyed as a specific, measurable number or value.

Qualitative Data - Data that cannot be conveyed as a specific number or value. Often these involve opinions, feelings, or attitudes.

Query Letter (also known as a letter of inquiry) - A brief letter outlining an organization's activities and its request for funding that is sent to a potential grantmaker in order to determine whether it would be appropriate to submit a full grant proposal.

RFA - An acronym for Request for Application which is often used by agencies in announcing the availability of grant funding.

RFP - An acronym for Request for Proposals often used by government agencies in announcing the availability of grant funding. The RFP lists project specifications and application procedures.

Seed Money - A grant or contribution used to start new projects. Seed grants may cover salaries and other operating expenses of a new project.

Tax-exempt - Refers to organizations that do not have to pay taxes such as federal or state corporate tax or state sales tax.