Galls Grant Solutions - Grant Glossary

Does it ever feel like the grant world has its own language? Well, it does! The links below will take you to various online glossaries that define commonly used grant program terms so you can learn to talk the talk. Some glossaries are specific to certain types of grants, but most of them will contain acronyms, commonly used abbreviations and definitions of wording used in grant requests for proposals and applications. A list of the most common terms is included on this page as well.

Application: The formal document submitted by a potential Grantee seeking funds. The application is the most complete presentation of the project and is often the basis for the Grant Agreement. See also PREAPPLICATION and GRANT AGREEMENT.

Audit (Financial): An examination of an agency’s accounting documents by an outside expert. Upon review, the expert prepares an opinion as to consistency and conformity with Generally Accepted Accounting Principals. Audits are generally conducted after the end of the fiscal year. Some grant programs require an audit of grant funds at the end of the project.

Authorization is the legal authority upon which a program is based. Sometimes known as Enabling Legislation.

Beneficiary: A member of the target population for whom the grant was prepared. For example, a student attending adult literacy classes would be the beneficiary of a grant, while the school district would be the grantee. See also TARGET POPULATION, GRANTEE, and SUB-GRANTEE.

Bricks and Mortar: An informal term for capital funds generally used for building renovation or construction.

Brownfield: A property that has real or perceived environmental contamination. Often Brownfields are associated with abandoned, decaying urban properties. See GREENFIELD.

Challenge Grant: A grant that must be matched with money raised by the recipient.

Drawdown: A drawdown is the method by which a successful grantee requests payment from the funding agency. Frequency of drawdowns, also known as draws, range from weekly electronic wire-transfers to a single lump sum payment at the end of the project. Quarterly drawdowns are very common.

Eminent Domain: The power of a public body to take private property for a public purpose. The agency that is doing the taking must pay just compensation to the property owner.

Enabling Legislation: See AUTHORIZATION.

Fiscal year (FY): A 12-month accounting period at the end of which the books are closed for an agency or governmental unit. Agency-wide financial audits are conducted after the end of the fiscal year.

Force Account: Paid labor donated by the grantee to a project to carry out all or part of the scope of work. The cost of this labor is not covered by the grant, but is part of the grantee’s match.

Funder: See GRANTOR.

Funding Agency: See GRANTOR.

Funding Cycle: The schedule of events starting with the announcement of the availability of funds, followed by the deadline for submission of applications, review of applications, award of grants, issuance of contract documents and release of funds. If funds are reappropriated or remain on hand after the first funding round, the cycle starts again. See APPLICATION, PRE-APPLICATION, and GRANT AGREEMENT.

Grant Agreement: A contract entered into by a grantee and a grantor. Typically based on the application submitted by the grantee, the Grant Agreement commits the grantee to carry out certain activities, within a stipulated time frame, for a specific amount of money. The Grant Agreement often refers to, or incorporates, regulations that govern the use of grant funds. It is important to note that the Grant Agreement may include more restrictive conditions than were proposed by the grantee or are required by law. The Grant Agreement may also be for less money than originally sought.

Grantee: The recipient of grant funds. Also known as Recipient. See GRANTOR and SUB-GRANTEE.

Grantor: The agency, foundation, or governmental unit that awards grants. Also known as Funder or Funding Agency. See GRANTEE and SUB-GRANTEE.

Greenfield: A property that has not been previously developed and therefore is considered to be environmentally clean. See BROWNFIELD.

In-kind: A non-cash donation of labor, facilities, or equipment to carry out a project. Typically, skilled and professional labor can be valued at the prevailing rate for the field. Work performed by a professional or skilled laborer outside of their field, however, is generally computed at some standard or minimum wage.

Letter of Intent: A letter of intent expresses a grantor's willingness to commit funds to a project if other conditions are met. This letter allows the grantee to seek other funds without firmly committing the grantor to the project.

Leveraging Ratio: The proportion of grant funds to funds or non-cash donations from other sources. For example, a leveraging ratio of 1:1 means that for every grant dollar awarded to a project, the grantee will secure one dollar from another source. The term implies that grant dollars are used to "leverage" other dollars. See MATCHING FUNDS.

Matching Funds: Some funding sources will pay only a percentage of the cost of a project. The grantee is required to pay the difference with money or non-cash donations from other sources. The non-grant funds are known as Matching Funds or the Match. See FORCE ACCOUNT, IN-KIND, LEVERAGING RATIO.

Not for Profit: An incorporated organization in which stockholders and trustees do not share in profits. Nonprofits are usually established to accomplish some charitable, humanitarian, or educational purpose. See also 501(c)(3).

On Spec: An informal abbreviation for "on the speculation". Consultants, including grant writers, architects, lawyers, and others, may do preliminary work "on the speculation" that if the project is funded more work will be forthcoming. The on spec portion may be done for free or at a reduced rate in the hopes of securing the additional work. This arrangement may raise ethical concerns with funding agencies.

Pass Through: The act of a grantee receiving grant funds and dispersing those same funds to a sub-grantee. It is common for the Grantee to perform the Program Audit of the Sub-Grantee. A portion of the grant funds are often retained by the Grantee to cover the cost of administration. See AUDIT (PROGRAM), GRANTEE and SUB-GRANTEE.

Pipeline: An informal term for grant applications that score well, but fall just short of being awarded. If additional money is allocated to the program, or if funded projects do not materialize, a grant application "in the pipeline" may be funded.

Pro Forma: Latin for "as a matter of form". A pro forma is a projected, proposed or hypothetical set of numbers for a project, typically the budget.

Program Income: Gross income or revenue generated by a project. This may include sale of real estate or equipment, rental income, fees, interest on loans, proceeds from the sale of loans, interest earned, and funds collected through special assessments. Program income may be subject to all of the conditions of the original grant award.

Recipient: See GRANTEE.

Request for Proposal (RFP): A solicitation by a grantor seeking applications from potential grantees. Also used by grantees to hire professional services.

Soft Costs: Costs associated with building or renovating project exclusive of the labor and material cost of the project. Typical soft costs include architects and lawyers fees, closing costs, title searches, permits, and fees.

Sub-Grantee: A recipient of pass through grant funds from a grantee and not directly from the Grantor. A subgrantee is held to all of the regulations of the original grant plus any conditions added by the Grantee. Also known as Sub-Recipient. See PASS THROUGH, GRANTEE, AND GRANTOR.

Turnkey: A project that is constructed by a developer and sold or turned over to a buyer in a ready to use condition. The buyer has only to "turn the key" to begin operations.