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APPENDIX 1: GLOSSARY OF KEY TERMS
Ask: a formal request for a contribution to a donor
or prospect
Beneficiary: person who benefits from a project or
receives services provided by an organization
Budget: a chart or list of costs associated with an
organization or project added together and totaled; in
grant writing, there are two main types of budgets –
an organizational budget (or general operating budget)
and a project/program budget
Budget narrative/budget justification: an explanation of
each cost category in a project budget
Call for proposals: an invitation to submit a proposal for
a specific program area or type of project; sometimes
funders invite only pre-selected organizations to apply,
other times funders post calls for proposals publicly so
any organization that matches its terms can apply; also
referred to as a request for proposals (RFP)
Concept note/paper: similar to a letter of inquiry or
intent (LOI), a short document that describes a
project; while an LOI is usually 1-3 pages long, a
concept paper can be longer and more theoretical
Corporate sponsorship: money a company gives to an
organization to support their work; often includes
an agreement to the company’s logo or name in the
organization’s publicity materials; these sponsorships
are often used to enhance the company’s reputation in
the community
Cultivation: the process of developing and growing
a relationship over time with a potential or
current donor
Direct costs: the expenses an organization incurs in
implementing a specific project
Donor network: can refer to an organization’s group of
financial supporters or a formal or informal group of
donors that communicate with each other
Executive summary: a brief description of the contents
of a proposal or a report included at the beginning of
the document
Fiscal agent: an organization that accepts donations
on behalf of another without tax-exempt status and
forwards the money to the other group, sometimes
taking a fee for administrative expenses
General operating support/unrestricted funding: a
grant that can be used to pay for indirect costs or
direct costs at the recipient’s discretion
Gift: a contribution that does not need to be paid back;
this could be a monetary gift or an in-kind gift of
products or services
Giving circle: groups of donors who pool their
contributions to support specific causes or
organizations
Goal: the big picture outcome or result you want your
organization or program to achieve
Grantee: term for an organization receiving a grant from
a foundation or other institutional funder
Indicators: a set of specific measures used to show results
and define the success of a project
Indirect costs/overhead: the “cost of doing business” –
the basic expenses needed to run an organization such
as rent, utilities, equipment, supplies, salaries and
benefits for non-project staff
In-kind gifts/contributions: Gifts that are not given in
cash, such as free products or services
Letter of intent/letter of inquiry (LOI): a short
preliminary request for a grant (usually 2-3 pages)
submitted in advance of a full proposal that
summarizes the key information a funder needs to
decide whether an organization is a good candidate for
a grant
Lobbying: activities conducted to influence a specific
piece of legislation or in favor of electing a particular
candidate for political office
Matching gift: donors who will match the amount of
money you raise in a campaign, potentially doubling
the total only if you reach a certain level
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