Glossary

Grants awarded to a grantee, such as a state administrative agency, with the requirement that the majority, if not all, the funds then be distributed to other, generally smaller organizations or agencies.

The minimum amount that private foundations are required to expend for charitable purposes (including grants and, within certain limits, the administrative cost of making grants). In general, a private foundation must meet or exceed an annual payout requirement of five percent of the average market value of its total assets.

Process of evaluating proposals for funding; usually involves experts representing the same general fields or disciplines as the proposal topics.

Principal Investigator

A nongovernmental, nonprofit organization with funds (usually from a single source, such as an individual, family, or corporation) and program managed by its own trustees or directors. Private foundations are established to maintain or aid social, educational, religious, or other charitable activities serving the common welfare, primarily through the making of grants. See also 501(c)3; public charity.

The training required for maintaining a career path or any professional continuing education.

The gross income earned by the grantee that is generated directly by a grant-supported activity or earned as a result of the grant. It includes, but is not limited to: income from fees for services performed, the use or rental of real or personal property acquired under the grant, the sale of commodities or items developed or fabricated under the grant.

A staff member of a foundation who reviews grant proposals and processes applications for the board of trustees. Only a small percentage of foundations have program officers.

A loan or other investment (as distinguished from a grant) made by a foundation to another organization for a project related to the foundation's philanthropic purposes and interests.

Individual responsible for activities involved in the grant, including the evaluation and follow-up (also called "Coordinator").

Funding for a specific initiative or new endeavor, not general purpose.

A written application, often accompanied by supporting documents, submitted to a foundation or corporate giving program in requesting a grant. Most foundations and corporations do not use printed application forms but instead require written proposals; others prefer preliminary letters of inquiry prior to a formal proposal. Consult published guidelines.

A nonprofit organization that qualifies for tax-exempt status under section 501(c)(3) of the IRS code. Public charities are the recipients of most foundation and corporate grants. Some public charities also make grants.