Glossary

Funds provided for endowment purposes, buildings, construction, or equipment.

Catalog of Federal Domestic Assistance, now known as the System of Award Management (SAM)

A grant that is paid only if the donee organization is able to raise additional funds from other sources. Challenge grants are often used to stimulate giving from other donors. See also matching grant.

A 501(c)3 organization that makes grants for charitable purposes in a specific community or region. The funds available to a community foundation are usually derived from many donors and held in an endowment that is independently administered; income earned by the endowment is then used to make grants. Although a community foundation may be classified by the IRS as a private foundation, most are public charities and are thus eligible for maximum tax-deductible contributions from the general public. See also 501(c)3; public charity.

An organized community program which makes annual appeals to the general public for funds that are usually not retained in an endowment but are instead used for the ongoing operational support of local agencies. See also federated giving program.

A cooperative arrangement entered into by like-minded organizations intent on pursuing a common goal. Many grant programs favor consortiums due to the likelihood that resource-sharing will lead to a broader impact and better "bang for the buck." Even if the grant is to be awarded to the consortium, one organization within the group must serve as the lead agency and assume responsibility for administrative oversight of the grant.

Independent entities engaged under a grant to provide a specific service or product (product purchase or fee-for-service). They are not employees of the grantee and no employer-employee relationship exists between the consultant and the grantee.

A joint effort between or among two or more grantmakers. Cooperative venture partners may share in funding responsibilities or contribute information and technical resources.

A private foundation whose assets are derived primarily from the contributions of a for-profit business. While a company-sponsored foundation may maintain close ties with its parent company, it is an independent organization with its own endowment and as such is subject to the same rules and regulations as other private foundations. Also referred to as a company-sponosred foundation.

A grantmaking program established and administered within a for-profit corporation. Because corporate giving programs do not have separate endowments, their annual grant totals generally are directly related to company profits. Corporate giving programs are not subject to the same reporting requirements as corporate foundations.

A method of "matching money" in which the grantee agrees to invest a certain sum or percentage of "in-kind" dollars into the project.