Grant writing has its own vocabulary — terms like statement of need, logic model, and indirect costs appear in almost every funding application. This glossary defines 104 of the most common grant terms in plain English, so you can read any RFP, proposal, or award letter with confidence.
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A
Abstract
A brief summary of your entire grant proposal, typically 200-300 words. It provides an overview of the project's goals, methods, and expected outcomes. Many funders read this first to decide if they'll review the full proposal.
Allowable Costs
Expenses that can be charged to a grant according to the funder's guidelines. These typically include direct costs like salaries, supplies, and travel that are necessary for the project.
Annual Report
A yearly document submitted to funders describing progress made on a funded project, including achievements, challenges, financial expenditures, and outcomes.
Applicant
The organization or individual submitting a grant proposal. Also known as the 'prospective grantee' or 'proposer.'
Award Letter
Official notification from a funder that your grant proposal has been approved for funding. It typically includes the award amount, terms, and conditions.
B
Baseline Data
Information collected before a project begins that describes the current state of conditions. Used to measure change and impact over time.
Beneficiaries
The individuals, communities, or populations who will directly benefit from the project activities. Also called 'target population' or 'participants.'
Budget
A detailed financial plan showing how grant funds will be spent. Includes line items for personnel, supplies, equipment, travel, and other expenses.
Budget Justification
A narrative explanation of why each budget item is necessary and how costs were calculated. Also called 'budget narrative.'
Budget Period
The time interval during which grant funds are authorized for expenditure, typically 12 months.
C
Capacity Building
Activities that strengthen an organization's ability to fulfill its mission, such as training staff, improving systems, or developing new skills.
Capital Grant
Funding specifically for acquiring or improving physical assets like buildings, equipment, or land.
Challenge Grant
A grant that requires the recipient to raise additional matching funds from other sources as a condition of receiving the award.
Collaborative Grant
A grant involving two or more organizations working together on a project, with one typically serving as the lead applicant.
Community Foundation
A public charity that raises funds from many donors to support nonprofits in a specific geographic area.
Compliance
Adherence to the terms, conditions, and regulations associated with a grant award.
Corporate Foundation
A private foundation created and funded by a corporation to manage its charitable giving.
Cost Sharing
The portion of project costs not paid by the grant, contributed by the grantee or other partners. Also called 'matching funds' or 'cost match.'
Cover Letter
A brief letter accompanying a grant proposal that introduces your organization and summarizes your request.
D
Deliverables
Specific products, reports, or outcomes that must be completed as part of the grant agreement.
Direct Costs
Expenses that can be specifically attributed to the project, such as salaries of project staff, supplies, and equipment.
Disbursement
The release of grant funds from the funder to the grantee.
Dissemination
Sharing project results, findings, and lessons learned with broader audiences through publications, presentations, or other means.
Due Diligence
The process funders use to verify an applicant's organizational capacity, financial health, and ability to carry out the proposed project.
E
Eligibility
The criteria an organization or individual must meet to apply for a particular grant.
Endowment
A fund established to provide ongoing support for an organization, with only the investment earnings spent while the principal remains intact.
Evaluation
The systematic assessment of a project's design, implementation, and outcomes to determine its effectiveness and impact.
Executive Summary
A condensed version of the grant proposal highlighting key points. Similar to an abstract but may be slightly longer.
Expenditure
The actual spending of grant funds on approved budget items.
F
Family Foundation
A private foundation whose funds come from members of a single family, who often also serve as trustees or directors.
Feasibility Study
An assessment of whether a proposed project can realistically be accomplished given available resources, time, and circumstances.
Federated Giving Program
A cooperative fundraising organization that collects donations through workplace campaigns and distributes them to member agencies (e.g., United Way).
Fiscal Agent
An organization with tax-exempt status that agrees to receive and manage grant funds on behalf of another group that lacks such status. Also called 'fiscal sponsor.'
Fiscal Year
A 12-month period used for accounting purposes. May or may not align with the calendar year.
Formula Grant
A grant where the funding amount is determined by a specific formula, often based on population, need, or other statistical factors.
Full Proposal
A complete grant application with all required components, as opposed to a preliminary proposal or letter of inquiry.
Funder
An organization or individual that provides grant funding. Also called 'grantor,' 'grantmaker,' or 'donor.'
G
General Operating Support
Unrestricted funding that can be used for any of an organization's expenses, including overhead, salaries, and day-to-day operations. Also called 'core support' or 'unrestricted funding.'
Goals
Broad, long-term outcomes that a project aims to achieve. More general than objectives.
Grant Agreement
A legal document that outlines the terms and conditions under which grant funds are awarded and must be used.
Grant Cycle
The complete process from grant announcement through application, review, award, implementation, and reporting.
Grant Period
The timeframe during which the funded project must be completed and funds must be spent.
Grantee
An organization or individual that receives a grant. Also called 'grant recipient.'
Grantor
The organization or individual that provides the grant funding. Also called 'funder' or 'grantmaker.'
Guidelines
The requirements and instructions provided by a funder for preparing and submitting a grant application.
I
In-Kind Contribution
Non-cash donations of goods, services, or volunteer time that support a project. Often counted as part of matching funds.
Indirect Costs
Expenses that support the organization as a whole and cannot be directly attributed to a specific project, such as rent, utilities, and administrative salaries. Also called 'overhead' or 'F&A (Facilities & Administrative) costs.'
Interim Report
A progress report submitted during the grant period, before the final report is due.
Invitation to Apply
A request from a funder for a specific organization to submit a grant proposal, sometimes after reviewing a letter of inquiry.
K
Key Personnel
The individuals who will play major roles in implementing the grant project, including the project director and other essential staff.
L
Letter of Commitment
A formal letter from a partner organization confirming their participation in and contribution to a proposed project.
Letter of Inquiry (LOI)
A preliminary letter to a funder describing your project concept to determine if a full proposal would be welcome. Also called 'concept paper.'
Letter of Intent (LOI)
A brief document submitted before a full proposal to express interest in applying for a grant. Some funders require this as a first step.
Letter of Support
A letter from stakeholders, partners, or community members endorsing your project and organization.
Logic Model
A visual representation showing the logical relationships between a project's resources (inputs), activities, outputs, and outcomes.
M
Matching Funds
Money that the grantee must contribute or raise from other sources as a condition of receiving the grant. Often expressed as a ratio (e.g., 1:1 match).
Memorandum of Understanding (MOU)
A formal agreement between two or more parties outlining their roles, responsibilities, and expectations in a partnership.
Milestone
A significant achievement or checkpoint in a project timeline that indicates progress toward goals.
N
Narrative
The written portion of a grant proposal that describes the project, need, methods, and expected outcomes.
Need Statement
The section of a proposal that documents the problem your project addresses, supported by data and evidence. Also called 'statement of need' or 'problem statement.'
No-Cost Extension
An approved extension of the grant period without additional funding, allowing more time to complete project activities.
Nonprofit Organization
An organization that operates for purposes other than making a profit and reinvests any surplus into its mission. Often has 501(c)(3) tax-exempt status.
O
Objectives
Specific, measurable steps that must be accomplished to achieve project goals. Should be SMART: Specific, Measurable, Achievable, Relevant, Time-bound.
Operating Budget
The overall annual budget for an organization's regular activities, as opposed to a project-specific budget.
Organizational Capacity
The ability of an organization to effectively implement programs, manage resources, and achieve its mission.
Outcomes
The changes or benefits that result from a project, such as changes in knowledge, skills, attitudes, behaviors, or conditions.
Outputs
The direct products of project activities, such as number of people trained, workshops held, or materials distributed.
Overhead
General administrative costs that support an organization's operations. See 'Indirect Costs.'
P
Pass-Through Grant
Funds received by one organization that must be distributed to other organizations or individuals.
Peer Review
A process where grant proposals are evaluated by experts in the relevant field.
Performance Measures
Specific indicators used to assess whether project objectives are being met.
Planning Grant
Funding to support the development of a program or project before full implementation.
Pre-Award Costs
Expenses incurred before the official start date of a grant that may be reimbursable under certain conditions.
Principal Investigator (PI)
The lead person responsible for the scientific and technical direction of a research grant.
Priority Areas
The specific issues, populations, or geographic areas that a funder has identified as focus areas for their grantmaking.
Private Foundation
A nonprofit organization that typically receives its funding from a single source and makes grants to other organizations.
Program Officer
A staff member at a funding organization who manages the grantmaking process, reviews proposals, and works with grantees.
Program-Related Investment (PRI)
Investments made by foundations to support charitable activities, often as loans with below-market interest rates.
Project Director
The person responsible for day-to-day management of a grant-funded project.
Project Period
The total time approved for completing a project, which may include multiple budget periods.
Proposal
A formal written request for funding that describes your organization, the problem you address, your proposed solution, and your budget.
Public Foundation
A nonprofit organization that receives funding from multiple sources and often makes grants to other organizations.
Q
Qualitative Data
Non-numerical information that describes qualities or characteristics, often gathered through interviews, observations, or open-ended surveys.
Quantitative Data
Numerical information that can be measured and analyzed statistically.
R
Replication
Implementing a proven program model in a new location or with a new population.
Request for Applications (RFA)
A formal announcement inviting organizations to apply for grant funding. Also called 'Request for Proposals (RFP)' or 'Notice of Funding Opportunity (NOFO).'
Request for Proposals (RFP)
An announcement from a funder soliciting grant applications, typically including eligibility requirements, deadlines, and application instructions.
Restricted Funds
Grant money that must be used for specific purposes as defined by the funder.
S
Scope of Work
A detailed description of the activities to be performed under a grant, including deliverables and timelines.
Seed Grant
Initial funding to help start a new project or organization, with the expectation that other funding will be secured.
Site Visit
An in-person visit by funder representatives to assess an applicant's facilities, programs, and organizational capacity.
SMART Objectives
Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.
Statement of Need
The section of a proposal explaining the problem or issue your project addresses. See 'Need Statement.'
Stipend
A fixed, regular payment to participants or trainees, often to cover basic expenses during a program.
Subgrant
When a grantee awards a portion of their grant funds to another organization to carry out part of the project.
Sustainability
The ability of a project or organization to continue operating after the grant period ends.
Sustainability Plan
A strategy describing how a project will continue after initial grant funding ends, including potential future funding sources.
T
Target Population
The specific group of people who will benefit from or participate in the project. See 'Beneficiaries.'
Technical Assistance
Expert help provided to improve an organization's capacity, often in areas like management, finance, or program design.
Theory of Change
A comprehensive description of how and why a desired change is expected to happen, showing the causal links between activities and outcomes.
Timeline
A schedule showing when project activities will occur during the grant period.
U
Unallowable Costs
Expenses that cannot be charged to a grant, such as alcohol, lobbying, or entertainment.
Unrestricted Funds
Grant money that can be used for any legitimate organizational purpose. See 'General Operating Support.'
W
Workplan
A detailed outline of project activities, responsible parties, and timelines. Also called 'work plan' or 'action plan.'
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