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Grant Terms and Definitions

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Activities
The actions you will take during the grant period to meet your goals and objectives.
Administrative Costs
Application
A grant submission that includes a narrative, specific project budget, and required administrative attachments (e.g., 501(c)(3) letter, organizational budget, board of directors list). Proposal and application are interchangeable terms.
Application Guidelines
Instructions that funders require applicants to follow when requesting funding. Guidelines often provide background information on the grant opportunity and key information on where and when to submit a grant proposal. These instructions are often found directly on the funders’ site or in a downloadable format. Interchangeable terms include:
Application Instructions
Approach
An approach is a description of your program. Within an approach section of an application, you will be asked to provide your process, strategies, or activities. The approach answers the following questions: What will you do? How will you do it? Who is responsible? When will the activities take place and where? Interchangeable terms include:
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Benchmarks
A standard or point of reference against which other things can be measured or compared. It is a tool to evaluate performance, set goals, and make informed decisions. Similar to indicators, benchmarks are often integrated into performance evaluation plans. (See also Milestones.)
Budget
A budget document is a required attachment by most funders and can include the following types of budgets: a project budget, a program budget, and an organizational budget. A one-page, high-level budget that includes both revenue and expenses is sufficient for an organizational budget.   
Budget Narrative or Budget Justification
The budget narrative details how each line item was calculated and provides a brief justification of each item. Depending on the guidelines, you may need to provide the justification as a part of the budget or as a separate narrative attachment.
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Calendar
A tool to track your grant proposals and reports. Most grants calendars are 12 months and align with your organization’s fiscal or calendar year.
Challenge Grant
Concept Paper
A concept paper is a document that gives a general overview of a project/initiative and its potential impact. It is used to engage potential funders – often funders who operate with “invitation only” grant programs – introducing them to the organization and program.
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Data Sources
Internal or external sources of information that will help you measure progress towards achieving program goals and objectives. This may include qualitative data such as results from interviews or focus groups, or quantitative data such as surveys or administrative data collected and tracked internally.
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Evidence-Based Practices or Interventions (EBIs)
Evidence-based practices are methods that have been proven to be effective through rigorous research. They are sometimes referred to as evidence-based interventions (EBIs).
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Fiscal Year (FY)
A 12-month period used by businesses, governments, and other organizations for accounting, financial reporting, and budgeting. The three most common fiscal year time frames used are: January to December; July to June; or October to September.
Framework
A structured outline or tool used during the proposal development stage to help you organize your program on paper. A framework can help you identify the resources, activities, outputs and outcomes of your program as well as evaluation processes. Tools such as a logic model or program planning document are considered frameworks.
Formative Evaluation
Funder
A public or private entity (foundation, government agency, or corporation) or individual who provides monetary support in the form of a grant.
Funding Opportunity Announcement (FOA)
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Goal
A goal is what your proposed program is trying to achieve. A goal should be time-bound and measurable. It should include your population of focus and the change you aim to make. It is often developed in response to a situation, problem, or community need you have identified. For project or grant-specific requests, a goal should answer the following questions: 1) What are you trying to accomplish? 2) Who are you trying to help? and 3) By when? (Also see SMART Goal).
Grant Agreement
A legal document that outlines the terms of the grant award between the funder and grantee. In addition to the amount awarded, this document often includes the grant period of performance, reporting dates, payment schedule, and points of contact for both entities. Interchangeable term includes Notice of (Funding) Award (NOA).
Grant Report
A report describing the progress made towards implementing your proposed program. Funders will often provide guidelines for how and when to report within the grant agreement or within a separate communication during the grant period.
Guidelines
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I
Indicators
Indirect Costs
The costs necessary to run the organization that are not associated with a single program or fundraising activity. For example, your finance team, grant writer or administrative support staff salaries may be indirect costs if their work is not exclusive to a single program. Indirect costs may include overhead expenses that are not easily isolated like shared equipment, space, and utilities. (See also Modified Total Direct Cost.) This term is more often used with federal and state funders. Interchangeable terms include:
Management and General Costs
In-Kind Match
Items in an “in-kind” match are non-cash contributions and can include the value of volunteer hours, donations of resources or services, or discounts. An in-kind match is a great way to demonstrate community support for your project and the amounts can add up quickly. However, in-kind matches often still require you to track these contributions/donations.
Instructions
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K
Key Performance Indicators (KPIs)
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Letter of Inquiry (LOI)
An LOI is a shortened version of a full proposal. Some funders require applicants to submit an LOI as a first step in the application process to determine alignment with the funder’s giving priorities.  
Letter of Support
A document that expresses endorsement for a grant proposal, often from a partner organization or individual, and can significantly strengthen the application. A letter of support is not binding.
Logic Model
A logic model is a high-level graphic or tool that conveys a program, initiative, or project’s current resources, activities, and proposed outcomes in response to a problem or situation. Logic models are used to support the program design phase.  
Long-Term Outcomes
The ultimate outcomes a program desires to achieve for its participants. Long-term outcomes are defined as meaningful changes in a community or target population’s condition or status. They should connect to the need or problem identified in your program design or narrative. The timeframe for achieving these can be 10 years or more. (See also Outcomes.)
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Matching Funds or Grants
Matching funds are other funds that support your project from other sources. Matching funds usually fall into two categories: cash or in-kind support (See In-Kind Match). Some funders or granting agencies may require matching funds as a condition of your grant application or award. Grantees must either raise a specified portion of the grant through solicitation of new money and/or in-kind contributions. The “match” amount required varies based on individual funding guidelines but can generally range from 20% to 100% of the grant award. Grants requiring matching funds are sometimes called Challenge Grants.
Measurement Tools
Tools used to measure program indicators. Examples of these tools include questionnaires, surveys, checklists, interviews, focus groups, documentation review and pre- or post-tests. For example, if you are using an evidence-based approach or intervention, the curriculum you use may come with recommended survey tools you can use to measure impact.
Medium- or Mid-Term Outcomes
The anticipated outcomes resulting from the sustained behavior change (change in skills, knowledge, attitudes, or motivations) experienced by participants in your program or the community you are serving. The timeframe for these outcomes is usually 5-7 years which is beyond most grant periods. Think of them as mid-point achievements between the short-term and long term outcomes. (See also Outcomes.)
Methodology
Milestones
Memorandum of Agreement (MOA)
Memorandum of Understanding (MOU)
A signed agreement that outlines the details and responsibilities of the parties to the agreement including the activities or services each party will perform, data to be collected and shared, reporting deadlines, and key points of contact. If a party to the agreement will be receiving funding to support the activities outlined in the MOU, the document should detail funding support and outline the requirements for invoicing. Interchangeable terms include Memorandum of Agreement (MOA).
Modified Total Direct Cost (MTDC)
A term most often used with Federal funding applications; a Modified Total Direct Costs (MTDC) is the base amount to which approved indirect costs rates are applied. MTDC includes direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward. MTDC excludes the following line items to which they are applicable or included in the budget request: equipment, capital expenditures, charges for rent, tuition reimbursement, participants support costs and the portion of each subaward in excess of $25,000.
N
Notice of Funding Availability (NOFA)
Grant application instructions funders require applicants to follow when requesting funding. This term is more often used by public funders (federal, state, or local government funders). NOFAs often provide background information on the grant opportunity and contain all submission requirements including page count, required attachments, which online portal to use when submitting a grant proposal, and contract information for the granting agency. They are often found on the granting agency’s website or Grants.gov and are usually available in a downloadable format. Interchangeable terms include:
Notice of (Funding) Award (NOA)
NOA is term often used by public funding agencies at the federal and state level for the Grant Agreement. (See also Grant Agreement).
O
Objectives
Objectives are developed when a proposed program requires multiple approaches or steps to achieve a goal. If objectives are required, they will have their own set of activities, outputs, and outcomes. Similar to goals, objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). Be aware that some funders may use goals and objectives interchangeably.
Organizational Budget
A one-page, high-level budget that includes both revenue and expenses for an organization’s current fiscal year. (See also Budget.)
Outcomes
The anticipated changes in participants’ skills, knowledge, attitudes, motivations, behavior, or overall status as a result of your proposed program. Outcomes are a type of performance indicator can be either process or programmatic. If your project/program has both, then they should be clearly distinguished. (See also Short-Term, Medium-Term and Long Term Outcomes.)
Outputs
The direct products/deliverables produced by the proposed program, project or grant. Outputs are are a type of performance indicator. They are tangible, like curricula developed, or quantifiable, like the number of participants recruited; partnerships formed; or trainings held.
Overhead Costs
See also Indirect Costs.
P
Partnership Agreement
Performance Indicators
Metrics established to track and assess the progress and performance of a program or intervention over time. They are specific, measurable, and observable characteristics or features that provide information about the inputs, activities, outputs, outcomes, and impact of the program or intervention. They can be quantitative (e.g., number of participants served) or qualitative (e.g., participant satisfaction). Outputs and outcomes are types of indicators. Another term used for Performance Indicators is Key Performance Indicators.
Plan of Action
Process Evaluation
The purpose of a process evaluation is to measure the amount, duration, or quantity of, or satisfaction with, the services provided (outputs). Process evaluations can be measured using tools, such as participant surveys and attendance records. Other terms for a process evaluation include Formative Evaluation and Process Monitoring.
Program Budget
A comprehensive budget that covers the broader operational costs of an entire program, which may include multiple projects or initiatives. This type of budget captures staffing, infrastructure, and administrative expenses beyond what is funded by a specific grant request and provides a more comprehensive view of what it takes to implement and sustain the program as a whole.
Program Description
Program Evaluation
The purpose of program evaluation is to measure the changes you anticipate your program will have in the lives of those you serve. It also includes how (measurement tools) and when you will measure the indicators you have established, including major milestones / benchmarks.
Program or Project Timeline
A project timeline is a concise way to list activities described in your approach, when they will take place, and who is responsible. Depending on the application guidelines, timelines may be provided in a chart or table format as an attachment or as a bulleted list in the narrative response. While the timeline is usually part of the approach, it is not a replacement for the approach narrative.
Project Budget
A budget that outlines the specific costs associated with a single, time-limited initiative or activity funded by a grant. It is focused, short-term and includes only the resources, staff time, materials, and expenses directly related to that project’s objectives. It is often detailed and narrow in scope, reflecting the short-term nature and specific deliverables of the funded work. Grant Specific Budget is an interchangeable term.
Proposal
See also Application.
Q
Qualitative Measures
Qualitative measures allow you to assess the impact of a program or activity using non-quantifiable data such as participant feedback obtained through interviews, surveys, or focus groups. (See also Performance Indicators.)
Quantitative Measures
Quantitative measures allow you to assess the performance or impact of your program numerically. For example, the number of trainings hosted, the percentage of participants who find employment after a training program or the percentage of participants who remain employed after exiting a program. (See also Performance Indicators.)
R
Report
S
Short-Term Outcomes
The anticipated benefits or changes that participants will experience because of your services. They are usually represented by changes in skills, knowledge, attitudes, or motivations. Short-term outcomes should be achievable within the grant period. (See also Outcomes.)
Strategy
SMART Goal
An acronym for “Specific, Measurable, Achievable, Relevant, and Time-bound.” Funders often use this term to describe how goals, objectives or other indicators of success should be presented.
Specific: Goals should be clearly defined, leaving no room for ambiguity. They should answer the “what,” “why,” and “how” of the goal.
Measurable: Goals need to have defined metrics to track progress. This allows for assessing whether the goal is being achieved and how close it is to completion.
Achievable: Goals should be realistic and attainable within the given timeframe and resources. Setting achievable goals ensures that individuals are not discouraged by overly ambitious targets.
Relevant: Goals should align with overall objectives and contribute to personal or professional growth. They should be meaningful and impactful.
Time-bound: Goals should have a defined deadline or timeframe for completion. This creates a sense of urgency and helps in prioritizing tasks.
Submission Timeline
A timeline that captures the external and internal deadlines associated with developing, drafting, reviewing, and submitting a full grant application.
Summative Evaluation
Sustainability Plan
Most funders will ask you to provide information on how you plan to sustain the proposed project beyond their funding period. The “plan” may not have to be detailed and is often just one paragraph. Be sure to include information about partnerships developed, other funders you have applied to (a list of pending, secured, and planned requests works) and any earned revenue or income.
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Work Plan
A detailed narrative or attachment that outlines the steps needed to achieve a specific goal or project. Often developed in the grant start-up phase, a project’s work plan offers direction and structure, ensuring everyone involved understands their tasks, timelines, and responsibilities. This document can be used to track tasks, key milestones or benchmarks, and to support grant reporting.
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