Glossary of Terminology
501(c)(3)
- A designation from the IRS to indicate that an organization is charitable and tax-exempt
Assets
- Cash, stock, bonds, real estate or other holdings of a foundation. Generally, assets are invested and the income is used to make grants.
Bequest
- A sum of money made available upon the donor’s death.
Capital Grant
- A grant that is used for building costs, equipment, or materials.
Challenge Grant
- a type of grantmaking that enhances (challenges) the recipient’s ability to draw upon this and expand its own resources/commitment.
Community Foundation
- A tax-exempt, nonprofit, autonomous, publicly supported, philanthropic institution composed primarily of permanent funds established by many separate donors for the long-term diverse, charitable benefit of the residents of a defined geographic area. Typically, it serves an area no larger than a state.
Demonstration Grant
- A grant made to establish an innovative project or program that will serve as a model, if successful, and may be replicated by others.
Designated Funds
- A type of restricted fund in which the fund beneficiaries are specified by the grantors.
Endowment
- funds or property donated to an institution, individual, or group as a source of income. The principal is held and invested to produce income.
Financial Report
- An accounting statement detailing financial data, including income from all sources, expenses, assets, and liabilities.
Foundation
- a not-for-profit organization, recognized by the Internal Revenue Service, to enhance the quality of life through grantmaking. Types of foundations include community, corporate, family, and private.
Grant
- An award of funds to an organization or individual to undertake charitable activities.
Grantee
- The organization that is receiving a grant.
Grantor
- The organization that is giving the grant.
Grantmaking
- The giving of funds for a specific purpose.
Grant Evaluation
- A review of the results of a grant, with the emphasis upon whether or not the grant achieved its desired objective.
Guidelines
- A statement of a foundation’s goals, priorities, criteria and procedures for applying for a grant.
In-Kind Contribution
- A donation of goods or services rather than cash or appreciated property.
Operating Support
- A contribution given to help cover an organization’s day-to-day, ongoing expenses, such as salaries, utilities, office supplies, etc.
Philanthropy
- the effort or inclination to increase the well being of humankind, as by charitable aid or donations
- love of humankind in general
- something intended to promote human welfare.
Program Grant
- A grant that is used to fund a particular program. Usually includes salaries or personnel-related costs.
Program Officer
- The staff person at a foundation who does things such as review grant requests, manage the application process, conduct site visits, and review grant evaluation reports.
Self-Dealing
- Entering into a financial transaction that includes paying excessive benefits to a “disqualified person.” This includes organization staff, board members, family members of staff and board members, and the businesses they control.
Site Visit
- Visiting an organization that has received a grant or is being considered for one. The purpose is to observe the organization, meet with staff, and get to know the program that will be funded.
Tax-Exempt Organizations
- Organizations that do not have to pay state and/or federal income taxes. The foundation, for instance, does not have to pay taxes on its earnings and as a result is able to give more out as grants.
Types of Funds
- Unrestricted – a permanent endowment fund that is not specifically designated for particular uses.
- Field of Interest – a fund that is used for a specific charitable purpose such as education or health research.
- Donor Advised – a fund where the donor has specified that the fund’s incomes be used for the benefit of one or more specific charities.