Allowable Cost

A cost incurred by the grantee that is reasonable for the performance of the grant award; allocable; conforms with any limitations or exclusions outlined in the grant; consistent with regulations, policies, and procedures of the recipient for both federally supported and other activities of the organization; accorded consistent treatment as a direct or indirect cost; determined by Generally Accepted Accounting Principles; and not included as a cost in any other award.

Applicant

An organization that applies for grant funding.

Appropriation

Funds set aside for a specific purpose.

Articles of Incorporation

Legal document to create a nonprofit organization. Filed with the secretary of state.

Authorized Signature

Signature of a person who is legally responsible for an organization and signs the grant award.

Award Special Considerations

Provisions of award that require specific actions as a condition of the grant award.

Block Grants

Type of grant awarded by a federal agency to state and local officials. Block grants are typically earmarked for a specific project or projects. 

Budget

A spending plan based on income and expenses for a defined period. Common budget categories include supplies and operating, travel, personnel, equipment, consultants, and indirect costs.

Budget Narrative

Explanation of how each expense in the budget relates to the program or project.

Bylaws

Internal document detailing policies for governing a nonprofit organization.

Capacity-building Grant

Grant award to strengthen an organization’s sustainability and effectiveness. Examples: strategic planning, Board or staff development, new fundraising or technology systems, etc.

Capital Funding

Time-limited funding for needs including equipment furniture, renovations, construction, etc.

Cash Flow Budget

Plan that shows income, expenses, and bank balance. A cash flow budget predicts the amount of funds left it your bank account at the end of the period.

Catalog of Federal Domestic Assistance (CFDA)

Government-wide list of federal programs, projects, services, and activities that assist the public. The CFDA number is the number assigned to a federal program in the CFDA. 

Closeout

A process that determines if all applicable administrative actions and required work of the grant has been completed.

Code of Federal Regulations (CFR)

Codification of rules published by federal departments and agencies. The Uniform Guidance is codified within Title 2 Grants and Agreements.

Community Development Block Grant (CDBG)

Supports community development activities to build stronger and more resilient communities. Addresses needs such as infrastructure, economic development projects, community centers, housing rehabilitation, public services, code enforcement, etc. 

Community Services Block Grant (CSBG)

Federal funds for states, territories, and tribes. Supports poverty alleviation programs in under-resourced communities. Activities include housing, nutrition, transportation, employment, education, crisis services, etc. CSBG funding is available to Community Action Agencies.

Cost Allocation Plan

A written summary of the methods and procedures that a grantee will use to allocate costs to various programs.

De Minimus Rate

Percentage of the Modified Total Direct Cost (MTDC) that can be used by non-governmental entities who do not have a negotiated Indirect Cost Agreement for federal grant awards.

Desk Review

Monitoring that includes reviewing subrecipient activities, reports, etc.

Direct Costs

Budget items associated with the program/project that are allowable under the funder’s guidelines. Examples include program/project staff salaries, materials, and fees specific to the program/project. 

Disallowed Costs

Charges to a grant that the funder has determined are beyond the scope of the purpose of the grant, are excessive, or are otherwise unallowable.

Disposition

Refers to real property/equipment that is no longer needed for the originally authorized purpose under the grant award.

Donor-Advised Funds (DAF)

Foundation accounts that allow donors to make contributions, gain tax deductions, and recommend grants. DAFs may be limited to favorite charitable organizations identified by the donor.

Drawdown

The process of requesting awarded grant funds. Also known as a Payment Request.

Earned Income

Revenue from work performed, services rendered, or sale of goods. A nonprofit example of earned income is the sale of Girl Scout cookies.

Eligibility

Criteria an organization must meet to apply for a grant program.

Employer Identification Number (EIN)

A unique 9-digit number assigned by the IRS to United States businesses with employees. Nonprofits with 501(c)(3) status and employees do not pay taxes but are classified as a business entity. 

Evaluation

Collecting, analyzing, and using data to determine if stated outcomes are met. Can also inform areas of improvement. Evaluation methods may include testing, participation, data collection, financial reports, performance, and qualitative.

Executive Summary

Also known as a Project Description, Summary, or Abstract. Summarizes the grant proposal in a few paragraphs. Components may include program or project goals, personnel, organizational capacity, etc.

Expenditure

Charges made by the grantee to a project or program funded by a grant award.

Federal Grant Recipient

An organization that receives a federal grant award. Also known as a "Prime Awardee". Recipients are required to register on SAM.gov.

501(c)(3)

Internal Revenue Service (IRS) categorization for a group existing for charitable purposes. Entities are subject to specific rules and laws and exempt from federal income tax.  Examples include nonprofits, churches/other religious organizations, and private foundations. 

Foundation

Nonprofit corporation or charitable trust making grants to organizations for charitable purposes. Community Foundation - Public charity that focuses upon supporting a specific geographic area. Corporate Foundation – Established to support the community where the corporation operates, and their employees live. Awards funds in fields related to their corporate activities. Private Foundation - Established by an individual, family, or corporation to fund specific interests. 

Funding Opportunity Announcement (FOA)

Also known as Notice of Funding Opportunity (NOFO), Request For Proposal (RFP), and Request For Application (RFA). Notice of an active funding opportunity, including guidelines for preparation and submission.

Funding Opportunity Number (FON)

A number that a federal agency assigns to its grant announcement.

General Operating Support

Funding not tied to a specific program or project. Organization may use to support daily operations as needed.

Generally Accepted Accounting Principles (GAAP)

Technical accounting term that includes conventions, rules, and procedures needed to define accepted accounting practices at a particular time. GAAP can include both broad guidelines and detailed rules and procedures.

Goal

General statement about what a program or project intends to do. A goal can address process, performance, or outcome.  

Government Contract

A procurement tool used by the government to get supplies or services. Typically awarded by competitive solicitation to commercial enterprises. Also open to nonprofits and state or local governments by response to a competitive solicitation. Some contracts are only open to small businesses, minorities, or special competitor classes. Government contracts are legally binding and include heavy regulation. 

Government Grant

Local, state, or federal grant designed to serve a public purpose. Awarded to states, local governments, colleges/universities, and nonprofits. More flexible scope of work than a government contract. Awarded on a competitive basis to entities best able to meet identified government need.

Grant

Money given to an organization for a particular purpose.

Grant Agreement

Document signed by grantee and grantor. Outlines the start and end dates of the award and requirements to accept funding. Details any required narrative and or financial reporting.

Grant Amendment

A document that modifies any portion of a grant award. 

Grant Extension

An extension of the original grant award period. A No-Cost Extension occurs when no additional funding is applied to the grant award.

Grant Management

Activities associated with administering a grant. Can include progress toward goals and objectives, expense tracking, and reporting requirements.

Grant Proposal

Request for funding submitted to grant-making entities. Proposal components vary by funder. Executive Summary, Statement of Need, Program/Project Plan, Budget, Evaluation, and supporting documents.

Grant Reviewer

An individual who reviews and scores grant applications as part of a competitive grant process.

Grantee

The recipient of a grant.

Grantmaking Public Charity

Also known as a Public Foundation or Community Foundation. Funds come from a variety of sources – foundations, individuals, government agencies. 

Grantor

The entity providing grant funds to a grantee.

Grants.gov

Website for federal grant opportunities. Provides grant learning center resources, terminology, and opportunity to subscribe for funding alerts. Track status of submitted applications. Organizations must also register on the SAM.gov website.

Impact

Effect of program delivery and achievement of specific goals and objectives.

Indirect Costs

Budget items incurred as the cost of doing business, not specific to the program. Indirect costs are often called overhead. Examples: administrative staff salaries, office supplies, rent/mortgage, occupancy, utilities, etc. A funder may allow calculation of a percentage of indirect costs as costs for the program or project.   

Infrastructure

Organization components required to be effective, efficient, and sustainable. Examples include staff (administrative and direct service), facilities, technology, vehicles, rent, utilities, etc.

In-kind Resource

Non-monetary donation to an organization. Examples include volunteer time, pro bono professional services, donated goods, computers, furniture, meeting space, etc. 

Inputs

What an organization invests to carry out activities of a program or project.

Invitation-Only Grant

Notice that organizations are not to apply for funding without an invitation from the grantmaking entity.

Key Performance Indicator (KPI)

Measure of quantifiable performance over time for an objective. KPIs create progress milestones and help an organization make better decisions.

Letter of Interest (LOI)

Also known as a Letter of Inquiry. Brief letter providing an overview of the organization and funding request. Often required as the first step in applying for a grant. The purpose of a LOI is to give the funder the opportunity to decide if they want to see a full grant proposal.

Letter of Support

Letters of support from community leaders and entities demonstrate organizational credibility. They state support for the organization’s submission of a grant proposal.

Logic Model

Step by step roadmap that describes how a program or project is supposed to work. Includes inputs (resources), outputs (activities), and outcomes (results).

Matching Grant

Organization must raise a certain amount of money before receiving grant funds. In-kind resources are also considered matching funds. Examples include volunteer time, pro bono professional services, donated meeting space, etc. A match demonstrates to the funder that other donors support the organization’s mission.

Memorandum of Understanding (MOU)

Also known as a Memorandum of Agreement (MOA). Agreement between parties clarifying roles and responsibilities, facilitating cooperation, and ensuring compliance. A MOU is not a legally binding agreement.

Modified Total Direct Cost (MTDC)

The base for calculating Facilities & Administrative rates for federal grant award budgets. This may include direct salaries and wages; applicable fringe benefits; services; travel; and materials and supplies. As of October 1, 2024, MTDC will include a threshold of $50,000 per subrecipient over the life of a federal grant award.

Months of Available Net Assets (MANA)

Number of months an organization could operate with available reserves if revenue ceased.

Multi-year Grant

Funder’s commitment to provide a guaranteed income stream for two or more years. The organization can focus efforts on service provision instead of on fundraising.

Need Statement

Also known as a Statement of Need or Problem Statement. Describes the problem and target population that the program or project will serve. Includes factual data to support planned programming. Indicates how the funder’s investment will address under-served or unmet needs.

990

Annual IRS tax return form that public charities and foundations must file with the IRS. Can provide insight into a foundation’s key relationships and giving history.

Notice Of Funding Opportunity (NOFO)

Also known as Funding Opportunity Announcement (FOA), Request For Applications (RFA), and Request For Proposals (RFP). Notice of an active funding opportunity, including guidelines for preparation and submission.

No-Cost Grant Extension

The extension of a grant award period where the grantee is given additional time to complete the original Statement of Work within the same approved budget. 

Notice of Grant Award (NOGA)

Document that offers grant funds to a grantee.

Objective

Statement that describes a result to be achieved and is used to monitor progress toward a program/project goal. An objective is SMART - specific, measurable, achievable, relevant, and time-bound. 

Office of Management and Budget (OMB)

Largest office within the Executive Office of the President of the United States. It oversees the performance of federal agencies and administers the federal budget.

Onsite Monitoring Visit

Post-award grant management activity performed by a funder to review the activities under a grant award.

Outcomes

Results of participation in program or project. Changes in conditions, behaviors, or attitudes. Should be specific, measurable, and meaningful. 

Outputs

Services or products delivered in a program or project. 

Overhead

Administrative and fundraising expenses necessary for an organization to do business. Also known as indirect costs. Examples: staff salaries (executive, finance, development, human resources), insurance, audit, technology, mailing expenses, etc.

Pass-Through Entity (PTE)

Non-federal entity that provides a sub-award to a subrecipient to carry out part of a federal program. 

Peer Review

Evaluation of grant proposals involving experts in the same general fields or disciplines as the proposal topics.

Plain Language

Writing that is clear, concise, and well-organized. Communicate in a way that your audience can understand the first time they read or hear it.

Prime Awardee

Also known as a Federal Grant Recipient. An organization that receives a federal grant award. Recipients are required to register on SAM.gov.

Procurement

Purchase of goods or contract professional services for grant activities that result in a binding contract with a contractor. Procurement also includes sub-awards to subrecipients.

Program

Ongoing, consistent set of activities and resources to provide a service.

Program Income

Grantee's gross income generated directly by a grant-supported activity or earned as a result of the grant.

Program Narrative

Also known as Proposal Narrative or Project Narrative. A key component of a grant proposal that describes the planned work. Includes purpose, goals, objectives, timeline, evaluation method, and outcomes.

Program Officer

Foundation employee who is responsible for most aspects of the grantmaking process. 

Project

Single, focused initiative with set beginning and end dates. 

Project Cost

Any cost associated with approved activities funded under a grant agreement.

Qualitative Data

Data describing observable qualities or characteristics. Collected from open-ended surveys/questionnaires, interviews, focus groups, case studies, and observation. Usually reported in narrative form.

Quantitative Data

Data counted or measured, related to numbers.  Can include clients who participated in a program, classes provided, completed surveys, etc.

Reconciliation

Review of grant transactions and supporting documentation, and resolution of any discrepancies.

Request For Applications (RFA)

Also known as Funding Opportunity Announcement (FOA) Notice of Funding Opportunity (NOFO), and Request For Proposals (RFP). Notice of an active funding opportunity, including guidelines for preparation and submission.

Request For Proposals (RFP)

Also known as Funding Opportunity Announcement (FOA), Notice of Funding Opportunity (NOFO), and Request For Applications (RFA). Notice of an active funding opportunity, including guidelines for preparation and submission.

Restricted Funds

Funds legally required to be used for the purpose they are given as identified in the grant agreement. Must be spent before the end of the grant cycle.

Retention Period

Amount of time for which information should be maintained. The grant agreement may specify the format of retained records - paper, electronic, or other.

Rolling Deadline

Grant available throughout the calendar year without a set deadline for application.

SAM.gov

System for Award Management (SAM). Registry for organizations doing business with the federal government. The SAM.gov registration process can take up to 10 days to complete. Annual update required. Organizations must also register on the Grants.gov website before applying for grant opportunities.

Seed Funding

Grant that provides non-renewable funds for new programs or projects. 

Service

Activity conducted by an organization to fulfill its mission or purpose.

Single Audit

Compliance audit including a financial statement audit report and report of the organization's internal controls. As of October 1, 2024, organizations expending $1,000,000 or more in federal award funds during a fiscal year must submit to a Single Audit.

Site Visit

Visit by funder’s representatives to a potential grantee’s location. Part of the decision-making process for a grant. Can also occur at the mid-point or end of the grant term to track performance.

Solicited Application for Funding

Posted notification that invites eligible organizations to apply for grant funding.

Subrecipient

An organization that receives a sub-award from a Prime Awardee that passes funding through to carry out part of a federal grant award.

Sustainability

The organization’s capacity to continue a program if a source of funding ends. Sustainability is a key component of an organization’s business strategy.

Target Population

Beneficiaries or recipients of an organization’s programs or services. 

Technical Assistance

Management or operational assistance given to recipients or subrecipients of a grant award.

Unallowable Cost

Cost in a project budget that a funder will not cover. This will vary by funder. The RFP should indicate any unallowable costs. Example: The funder may not pay for conference travel expenses for a proposed project.

Uniform Guidance (UG)

Set of rules and requirements for federal awards from the Office of Management and Budget (OMB). Codified as 2 CFR 200 which means that the OMB refers to Title 2, Part 200. The UG updates and clarifies cost reporting guidelines for award recipients.

Unique Entity Identifier (UEI)

The number received through SAM.gov during the registration process. Required before an organization can apply for grant opportunities through Grants.gov.

Unrestricted Funds

Donations used for any purpose if they meet the mission of the organization. Also known as general operating support. Funds are not restricted to a specific program, project, or event. 

Unsolicited Proposal

Submission of a proposal to a funder when there is no active request for proposals.