Grant Writing Dictionary: Jargon Demystified
Like any profession in the 21st Century, Grant Writing and Non-Profit development has its own lexicon of jargon. To help our clients, we have developed the following dictionary of key grant writing terms.
Anyone who would like us to add a word, phrase, or technical term to this list, please drop us an email. We are always seeking valuable input so that we may serve our customers more effectively.
501(c)(3): This is the tax code that designates an organization as being a non-profit.
509 (a) Tax code indicating agency is a private foundation.
Determination Letter: Letter from the IRS indicating an organization's tax status. Sometimes needs to be included when submitting a grant proposal
Diverse Revenue Streams: An element that must be highlighted in a non-profit's operating budget. How much of your organization's funding is coming from sales, corporations, individual donors, government agencies, and private foundations. Since grants are not meant to sustain an organization, many funders will be wary of organizations that receive the majority of their funding from grants.
Earned Income: Income from sales of tickets, merchandise, membership, etc.
General Support or Operating Funds: Funds to assist an organization in meeting its day to day operational expenses. Most foundations are wary of making grants in support of "General Operating Costs", but some corporations like Bank of America are now changing their guidelines to support these kinds of grants.
In-Kind Contributions: Non-cash assistance in the form of office space, equipment, advice, or other elements that would contribute to the hard cost of a project.
Interest Income: Income from gifts, reserves, proper endowment, etc.
IRS Form 990-FF: Tax form private foundations must submit to the IRS listing all their grantees, financial details, giving interests, restrictions, deadlines, and application procedures. Excellent source to research a foundation's giving history.
Letter of Determination: See above (Determination Letter)
Letter of Inquiry: Some foundations require prospective grantees to submit a letter of inquiry before submitting a full proposal. These often help the foundation determine within seconds whether the project being proposed is aligned with the foundations stated goals and mission.
Letters of Support or Endorsement: Sometimes a non-profit will not be able to accomplish a project on its own, and so must enlist the resources of other organizations and agencies to assist them. In such cases, foundations may ask for letters of endorsement from personnel in these other agencies endorsing your ability to accomplish the project.
Liquidity: How much of a non-profit's fund balance is cash or easily converted and how much is restricted.
Matching Funds: Foundations and government agencies may make an award contingent on the receipt of matching funds from charitable donations totaling the same amount of the grant.
On-Site Visit: Although increasingly rare to to travel costs, some larger foundations and government agencies may request an on-site visit to give them a better idea of your organization's capabilities.
Private Funders: These nongovernmental funders include foundations, corporations, service organizations, professional and trade associations, and labor unions.
Public Funders: These are federal, state, county, and municipality agencies who make grants to carry out directives established by their respective legislative bodies. More often than not, their aim is to assist large numbers of people through their grant awards.
Requests for Proposals (RFP's): An announcement by a federal agency or sometimes a private foundation inviting non-profits to submit grants for specific funds.
Sustainability: Highly important. Is your organization capable of maintaining its present growth?