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 by an independent auditing firm of an organization's financial position.

Beneficiary - In philanthropic terms, the donee or grantee receiving funds from a foundation or corporate giving program.

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.

Community Foundation - A 501(c)(3) organization that makes grants for charitable purposes in a specific community or region. The funds available to a community foundation are usually derived from many donors and held in an endowment that is independently administered. Income earned by the endowment is then used to make grants. Although a community foundation may be classified by the IRS as a private foundation, most are classified as public charities and are thus eligible for maximum tax-deductible contributions from the general public.

Corporate Foundation (also known as a company-sponsored foundation) - A private foundation whose assets are derived primarily from the contributions of a for-profit business. While a corporate foundation may maintain close ties with its parent company, it is an independent organization with its own endowment and as such is subject to the same IRS rules and regulations as other private foundations.

Cooperative Venture - A joint effort between or among two or more grantmakers. Cooperative venture partners may share in funding responsibilities or contribute information and technical resources.

Deferred Revenue - Money that the organization has received, but has not yet earned as of the closing date ont he balance sheet. This amount is carried as a liability until the organization provides the goods or services for which the money was received.

Distribution Committee - The committee responsible for making grant decisions.

Donee - The recipient of a grant.

Donor (also known as the grant maker or grantor) - An individual or organization that makes a grant or contribution to a donee.

Employee Matching Grant - A contribution to a charitable organization by an employee that is matched by a similar contribution from his or her employer.

Employer Identification Number (EIN) - A nine-digit number assigned by the Internal Revenue Service.

Endowment - Funds intended to be invested in perpetuity to provide income for continued support of a not-for-profit organization.

Family Foundation - An independent private foundation whose funds are derived from members of a single family. Family members often serve as officers or board members of family foundations and have a significant role in grantmaking decisions.

Federated Giving Program - A joint fundraising effort usually administered by a nonprofit "umbrella" organization that in turn distributes the contributed funds to several nonprofit agencies (e.g. United Way).

Fixed Assets - Estimated value of land, buildings, equipment and other tangible items owned by the organization.

Form 990 - The public record information return that many public foundations are required by law to submit annually to the INternal Revenue Service

Form 990-PF - The public record information return that all private foundations are required by law to submit annually to the Internal Revenue Service. In essence, a non-profit organization's tax return.

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

Grantee - The recipient of a grant (also known as the donee or the beneficiary).

Grantor - An individual or organization that makes a grant or contribution to a grantee (also known as the donor).

Grassroots Fundraising - Efforts to raise money from individuals or groups from the local community on a broad basis. Usually an organization's own constituents are the sources of these funds. Grassroots fundraising activities include raffles, auctions, membership drives, etc.

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

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 - Used 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 Proposals - Not all grant requests require a voluminous, highly detailed document. Some private foundations and corporate giving programs prefer grant seekers to submit their funding requests in a simple letter format. These grant proposals generally are no longer than four single spaced pages. Though short, these instruments contain the same elements of a larger, traditional grant proposal including.

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

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

Payout Requirement - The minimum amount that private foundation are required by the IRS to expend for charitable purposes.

Pledges - Funds promised to an organization from grantmakers, individual donors, etc., but not yet received.

Pre-proposals - Used as screening devises by funding agencies to limit the number of large 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.

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.

Program/Project Manager - Is the individual responsible for implement and overseeing the grant program or project. Usually, this is the person with the grant idea.

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

Public Charity - A nonprofit organization that qualifies for tax-exempt status under section 501(c)3 of the IRS code.

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 often used by government 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 a new project or organization. Seed grants may cover salaries and other operating expenses of a new project.

Special Purpose Foundation - A private foundation that focuses its grantmaking activities in one or a few areas of interest.

Sponsorship - Affiliation with an existing nonprofit organization for the purpose of receiving grants.

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

Trustee - A foundation board member or officer who helps make decisions about how grants are awarded.

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