Glossary of Terms Related to Grant Writing

Annual Report — a yearly report issued by a foundation or corporation that provides a statement of priorities and/or mission statement, financial data, and a description of grant activities/projects funded during the reported year. The annual report is developed based on information from the funding agency’s fiscal year (see below).

Block Grant — a grant from a government funding source, distributed based on a formula to a number of different recipients, often with limited control over its ultimate utilization.

Budget — a representation of the project expressed in dollar amounts of estimated expenses and income over a designated time frame. When submitting the budget as part of the grant proposal it is necessary to include both a figurative and narrative explanation.

Contract — legal agreement between the grantor and the grantee establishing work to be performed, products to be delivered, financial arrangements, time frames for completion of project, and other provisions or conditions governing the arrangement.

Direct Costs — the cost of administering a project always includes direct costs and sometimes includes indirect costs (see below). Examples of direct costs include salaries and fringe benefits, supplies, travel, communication, equipment, rentals, fees, printing, duplication, and evaluation.

Evaluation — an appraisal to measure the extent to which the activity or program attained the goals/objectives set forth in the grant proposal. Evaluations are conducted by external evaluators (individuals who are not directly involved in the implementation of the project) or internal evaluators (personnel directly involved with the project and usually employed within the grantee organization). Evaluations may be based on quantitative data (measurement expressed in numerical values) and/or qualitative data (measurement expressed in statements).

Fiscal Year — a time period used by organizations to record and track financial activities. All fiscal years contain 365 days; however, agencies may operate on various fiscal year schedules. For example, the federal government fiscal year is October 1 through September 30; the University of North Dakota’s fiscal year is July 1 through June 30; and some organizations operate on a January 1 through December 31 fiscal year.

Fringe Benefits — paid by employer for various employment benefits such as health insurance, social security, retirement, and other insurances. Usually included in a budget as a percentage of total salaries.

FTE — Full time equivalent. Used to identify the amount of time an individual will contribute to the project (i.e. 50% FTE means that the staff member would work _ time on this project).

5019(c)(3) — Most grantors will require the grantee to have 501(c)(3) status. To qualify for tax exempt status under the Internal Revenue Code 501(c)(3), an organization must be operated for religious, charitable, educational, literary or scientific purposes. The major classifications of organizations that may qualify as exempt from federal income tax by the IRS include charitable organizations, social welfare organizations, labor and agricultural organizations (i.e farm bureaus), business leagues (i.e. chamber of commerce), social clubs, fraternal societies, veterans’ organizations, employees’ associations, and political organizations (i.e. political action committees).

Grant — a formal award of money given to an individual or organization for a designated purpose.

Grantee — agency (government, foundation, corporation, nonprofit organization, individual) awarding a grant to a recipient.

Guidelines — a set of instructions for a proposal development and submission which are used as the basis of judging a proposal and awarding a grant. Guidelines usually include general principles of the grantor and its priorities for funding.

Indirect Cost (overhead) — real costs necessary to facilitate and maintain the operations of the organization sponsoring or carrying out the supported program or project. Indirect costs are not readily identified but are necessary to maintain the infrastructure of the grantee organization (e.g. plant operations, administration, and depreciation).

In-kind Contributions — subsidy (either financial or operational) to the project or program by the grantee or party other than the grantor. The contribution, which directly benefits the funded project or program, could consist of contributed staff time, equipment,, building, and/or supplies.

Letter of Follow-up — communication outlining the proposed project. The letter is usually sent after the initial phone contact with the project officer and often is required by the funding agency prior to accepting a full proposal.

Matching Funds — participation by the grantee in the cost of the program on a dollar-for-dollar basis or other predetermined ratio.

Matching Grant — a grant made by one or more source(s) which combines with an award from another funding source to implement a program or project.

Notice of Grant Award — formal written notice from the grantor specifying acceptance of the proposal, the amount of the grant, time period for implementation, and special requirements. The Notice usually will require signature accepting the specific requirements of the grantor.

Priority for Giving — the emphasis area(s) that a funding source has determined to be worthy of funding. Funding sources publish their priorities for giving within program guidelines, annual reports, application brochures, and on their web sites.

Project Director or Principal Investigator — the individual designated by the grantee as being responsible for directing and managing the project.

Project of Program Officer — the funding agency official who is responsible for a priority of giving area. In some agencies the project/program officer is responsible for the selection of grant proposals, financial oversight, and administrative/reporting review. Larger funding source agencies have several project/program officers while smaller agencies may have only one.

Proposal — a formal written document submitted to a grantor detailing a program/project and the costs associated with implementation of the same

Request for Proposal (RFP) — a formal announcement by a funding agency inviting the submission of a proposal and specifying criteria that will be used in considering proposals with respect to goals, scope of work, work plan, administration, timing, and reporting.

Staff — personnel assigned functions in order to carry out the activities outlined in the proposal.