Glossary of Grant Writing Terms Used in Grantmaking and Grant Proposal Writing

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501(c)(3): The section of the IRS tax code that defines charitable, nonprofit organizations exempt from federal income tax. Donations to 501(c)(3) organizations are tax-deductible for donors.

990 Tax Form: The annual information return that tax-exempt organizations must file with the IRS. These public forms include financial information and, for foundations, list all grants made during the year.

Accreditation: Official recognition from an authoritative organization that your nonprofit meets specific professional standards and quality benchmarks in your field.

Alignment: The degree to which your organization’s mission, values, and proposed project match a funder’s priorities and interests. Strong alignment increases your chances of receiving funding.

Annual Audit: An independent examination of your organization’s financial records by a certified public accountant (CPA) to verify accuracy and compliance with accounting standards. Many funders require audits from organizations with budgets above certain thresholds.

Annual Operating Budget: The total amount of money your organization plans to spend in one year across all programs, administrative costs, and fundraising activities.

Annual Report: A comprehensive document published yearly that summarizes your organization’s programs, accomplishments, financial information, and impact. Used for transparency and fundraising purposes.

Application Process: The formal steps and requirements a nonprofit must complete to request funding from a foundation, including submitting forms, proposals, and supporting documents by specific deadlines.

Audited Financial Statements: Financial reports that have been examined and verified by an independent certified public accountant (CPA). Audits provide assurance that your charity’s financial statements are accurate and follow standard accounting practices. Funders often require these to assess financial stability.

Baseline: The starting point measurement before your program begins, used to compare against later results to demonstrate change or improvement. For example, measuring participants’ reading levels before a literacy program starts.

Baseline Data: Measurements taken before a program begins that establish starting conditions. This data serves as a comparison point to measure change and progress. For example, if you’re measuring reading improvement, baseline data would be participants’ reading levels at program start.

Benchmark: A standard or reference point used for comparison. In grants, you compare your outcomes to industry benchmarks or average performance to demonstrate effectiveness.

Board of Directors: A group of individuals elected or appointed to oversee a nonprofit organization’s activities, finances, and strategic direction. The board ensures the organization stays true to its mission and operates legally and ethically. Strong, active boards signal organizational health to funders.

Board of Directors List: A document listing the names and professional affiliations of all members serving on your nonprofit’s governing board. Foundations review this to assess organizational leadership and governance.

Board of Trustees: The volunteer governing body legally responsible for your nonprofit organization. They set policy, provide oversight, and ensure the organization fulfills its mission.

Boilerplate: Standard, pre-written text about your organization (such as mission statement, history, or program descriptions) that can be reused and customized for different grant proposals.

Budget: A detailed financial plan showing how much your proposed project will cost and how you’ll spend grant funds, typically broken down by category (personnel, supplies, equipment, etc.).

Budget Narrative: A written explanation that accompanies your budget numbers, describing how you calculated costs and why each expense is necessary. It helps funders understand the reasoning behind your budget requests and ensures transparency.

Budget Request: The specific amount of money you’re asking a funder to provide, along with how you’ll use those funds.

Capacity: An organization’s ability to successfully carry out a program or project, including having adequate staff, systems, expertise, and resources.

Capacity Building: Activities that strengthen your organization’s ability to fulfill its mission, such as staff training, technology upgrades, strategic planning, or developing new systems and processes.

Capital Campaign/Capital Grants: Fundraising efforts or grants specifically for purchasing, constructing, or renovating buildings, facilities, or other major physical assets. Different from funding for ongoing programs or operations.

Case Management: A collaborative process where a professional assesses client needs, develops a service plan, coordinates resources, and monitors progress. Case managers help clients navigate complex systems and access multiple services to achieve their goals.

Case Study: A detailed examination of a specific example—such as one participant’s journey through your program—used to illustrate impact and bring data to life.

Common Grant Application: A standardized grant proposal format accepted by multiple funders in a region, allowing you to submit the same application to several foundations without reformatting.

Community Foundation: A public charity that manages funds from many donors and makes grants to nonprofits in a specific geographic area. They focus on local community needs and often have less restrictive application processes than private foundations.

Community-Driven: An approach where the people you serve actively participate in designing, implementing, and evaluating programs rather than being passive recipients.

Community-Led Solutions: Programs or approaches designed and directed by the community members they’re intended to serve, rather than imposed by outside experts.

Compliance: Adhering to all rules, regulations, and reporting requirements set by funders, government agencies, or regulatory bodies.

Concept Paper: A brief document (typically 2-5 pages) that outlines your project idea, submitted before a full proposal to determine if a funder is interested. Similar to a letter of inquiry.

Control Group: In evaluation, a group of people who don’t receive your program or intervention, used for comparison to measure your program’s specific impact. For example, comparing students who receive tutoring to similar students who don’t.

Corporate Foundation: A private foundation created and funded by a corporation to manage its charitable giving. These foundations often prioritize causes related to the company’s business interests or locations where they operate.

Corporate Funder: A for-profit company that provides grants or sponsorships to nonprofits, typically through a corporate foundation or corporate social responsibility program.

Corporate Giving Program: The philanthropic activities of a for-profit company, which may include cash grants, in-kind donations, volunteer programs, or sponsorships to nonprofits.

Corporate Social Responsibility (CSR): A company’s commitment to manage its business in socially responsible ways, often including charitable giving, volunteerism, and environmental sustainability efforts.

Cost Sharing: See Matching Funds.

Cost-Per-Beneficiary: The average amount it costs to serve one person in your program, calculated by dividing total program costs by the number of people served.

Cover Letter: A brief introductory letter that accompanies your grant proposal, addressed to the funder and providing context for your request.

Cultivation (in fundraising): The process of building and nurturing relationships with potential funders over time before making a formal funding request. Includes activities like meetings, site visits, and sharing organizational updates.

Data Collection: The systematic process of gathering information to measure your program’s activities and outcomes, such as through surveys, interviews, tests, or observation.

Development Director: The staff member responsible for leading a nonprofit’s fundraising efforts, including grant writing, donor relations, and fundraising strategy.

Direct Costs: Expenses that can be directly attributed to a specific program or project, such as staff salaries for that program, supplies used, or equipment purchased. Opposite of indirect costs.

Direct Service Delivery: Programs that provide services directly to individuals or communities, such as tutoring, counseling, meals, or healthcare, as opposed to advocacy or systems change work.

Donor-Advised Fund: An account at a community foundation or financial institution where donors contribute money, receive an immediate tax deduction, and then recommend grants to nonprofits over time. These function like mini-foundations.

Earned Income/Earned Revenue: Money your organization generates through fees, sales, or contracts for services, rather than through donations or grants. Examples include program fees, ticket sales, or consulting contracts.

ED: Short for Executive Director.

Endowment: A permanent fund where the principal amount is invested and only the investment returns are spent. Foundations with endowments can make grants indefinitely.

Evaluation Plan: A systematic approach for measuring and assessing whether your program achieves its intended outcomes. The plan describes what data you’ll collect, how you’ll collect it, when, and how you’ll analyze results to determine success and inform improvements.

Evidence-Based: Programs or practices that have been proven effective through rigorous research and evaluation. Evidence-based interventions are supported by data showing they produce desired outcomes. Funders increasingly prefer supporting approaches with demonstrated effectiveness.

Executive Director: The highest-ranking staff member at a nonprofit organization, responsible for day-to-day operations, implementing the board’s vision, and serving as the primary spokesperson.

Executive Summary: A brief overview of your entire grant proposal, typically one page or less, that captures the most essential information. This section summarizes the problem, your solution, expected outcomes, and funding request. Many reviewers read only this section initially to decide whether to continue.

Family Foundation: A private foundation established and controlled by members of a single family, who typically serve as trustees and make grant decisions. These may be less formal than larger foundations.

Financial Statements: Documents that show your organization’s financial position, including balance sheets (assets and liabilities), income statements (revenue and expenses), and cash flow statements.

Fiscal Sponsor/Fiscally Sponsored Organization: A relationship where an established 501(c)(3) organization provides legal and financial infrastructure to a project or group that doesn’t have its own tax-exempt status, allowing them to receive tax-deductible donations.

Form 990/990-PF: Tax forms that tax-exempt organizations must file annually with the IRS. The 990-PF is specifically for private foundations and publicly discloses all grants made, assets, and key personnel. These forms are publicly available.

Foundation: An organization established to make grants to nonprofits and individuals. Types include private foundations (funded by one source), community foundations (serving a specific area), and family foundations (controlled by family members).

Foundation Directory Online: A subscription database (now part of Candid) that provides detailed information about foundations and their giving patterns to help nonprofits identify funding prospects.

Fringe Benefits: Employee benefits beyond salary, such as health insurance, retirement contributions, life insurance, disability insurance, and payroll taxes. Usually calculated as a percentage of salary costs.

Full Proposal: A complete, detailed grant application that includes all required sections and attachments, typically submitted after initial screening through a letter of inquiry or concept paper.

Funders: Organizations or individuals who provide financial support to nonprofits and charitable causes. This includes foundations, corporations, government agencies, and individual donors. Understanding what motivates different funders is essential to successful fundraising.

Funding Cycle: The schedule or timeline a funder follows for accepting applications, reviewing proposals, and making grant decisions. Many funders have annual or quarterly funding cycles.

Funding Portfolio: The collection of organizations and projects that a foundation currently funds, similar to an investment portfolio. Foundations build diverse portfolios aligned with their strategic goals.

Fundraising Efficiency Ratio: A measure of how cost-effectively you raise money, calculated by dividing funds raised by the amount spent on fundraising. Higher ratios indicate greater efficiency.

General Operating Support: Grant funding that can be used for any organizational expense, including salaries, rent, utilities, and supplies, rather than being restricted to a specific program. This is flexible funding that nonprofits highly value.

Geographic Footprint: The physical locations or regions where an organization or foundation operates or focuses its work. Foundations often limit funding to specific geographic areas.

Geography: In fundraising context, the specific locations where a funder makes grants. Many foundations limit giving to certain cities, counties, states, or regions.

Giving History: The record of all grants a foundation has made over time, including which organizations they funded, how much they gave, and for what purposes. This reveals patterns in their funding priorities.

Goals and Objectives: Goals are broad, long-term changes you’re working toward (like “reduce homelessness in our community”). Objectives are specific, measurable steps toward achieving those goals (like “provide housing to 50 homeless individuals within 12 months”). Objectives should be concrete and time-bound.

Governance: The system by which an organization is directed, controlled, and held accountable. Governance includes the board’s oversight role, policies and procedures, decision-making processes, and compliance with legal and ethical standards.

Government Grant: Funding provided by a government agency at the federal, state, or local level. These grants typically have strict compliance and reporting requirements.

Grant: A sum of money given by a foundation, corporation, or government agency to a nonprofit organization for a specific purpose, with no expectation of repayment.

Grant Application: A written request for funding submitted to a foundation, corporation, or government agency, outlining your project, its budget, and expected outcomes.

Grant Calendar: A tracking system that organizes all grant deadlines, reporting requirements, and relationship-building activities to help you plan and manage multiple applications.

Grant Cycle: The recurring timeframe during which a funder accepts applications, reviews proposals, makes decisions, and distributes funds. Some funders have multiple cycles per year (quarterly, for example), while others accept proposals year-round or only during specific windows.

Grant Period: The specific timeframe covered by a grant, from the start date to the end date. This is how long you have to implement your program and spend the awarded funds. Grant periods can range from a few months to several years.

Grant Professionals Association: A membership organization for grant writers and fundraising professionals that provides training, certification, networking, and professional development resources.

Grant Proposal: A written document requesting funding from a foundation that describes your organization, the project needing support, budget, expected outcomes, and why the foundation should fund you.

Grant Range: The typical minimum and maximum dollar amounts a funder awards in grants. Knowing a funder’s grant range helps you determine if your request is appropriate.

Grant Writer: A professional who researches funding opportunities and writes proposals to secure financial support for nonprofits, educational institutions, or other organizations. They craft compelling narratives that align an organization’s needs and programs with funders’ priorities.

Grantee: An organization or individual that receives a grant. Once a funder awards you money, you become their grantee and typically must meet reporting requirements and other conditions outlined in the grant agreement.

Grantmaker: An organization or individual that provides grants, including foundations, corporations, and government agencies.

Grantmaking: The process by which foundations, government agencies, or corporations distribute funds to organizations or individuals for specific projects or programs. It involves setting funding priorities, reviewing applications, making funding decisions, and monitoring how grants are used.

Grassroots Organization: A small, community-based nonprofit typically led by and serving local community members. These organizations often have limited budgets and operate at a local rather than regional or national level.

Guidelines: The rules, requirements, and instructions a funder provides about who can apply, what they fund, how to apply, and what format to use.

Impact: The long-term change or difference your program makes in the lives of participants or in the community. Impact goes beyond immediate activities to lasting effects.

Impact Report: A document showcasing your organization’s outcomes and accomplishments, often used for fundraising. Similar to an annual report but may focus specifically on measurable results.

In-Kind Contributions: Non-cash donations of goods, services, or volunteer time that support your program. Examples include donated office space, pro bono legal services, or volunteer hours. These contributions demonstrate community support and increase total project investment beyond cash grants.

Independent Foundation (Private Foundation): A foundation that receives its funding from a single source (individual, family, or corporation) and is governed by its own board of trustees. These make up the majority of private foundations.

Indirect Costs: Expenses that support your overall organization but can’t be attributed to a specific program, such as rent, utilities, accounting services, executive leadership, and general office supplies. Also called overhead or administrative costs. Many funders allow a percentage of grant funds to cover these essential expenses.

Intake: The initial process of enrolling or onboarding participants into a program. Intake typically involves assessing needs, determining eligibility, collecting baseline information, and explaining program expectations. Good intake processes set the foundation for successful participation.

IRS Determination Letter: The official document from the Internal Revenue Service recognizing your organization’s 501(c)(3) tax-exempt status. Required by most funders to prove your nonprofit status.

IRS Form 990: An annual information return that most tax-exempt organizations must file with the Internal Revenue Service. The 990 provides detailed financial information including revenue, expenses, governance, and program activities. It’s public information that funders often review to assess organizational health.

Issue Area: A specific field or cause, such as education, healthcare, environment, or arts. Funders typically focus their giving on particular issue areas aligned with their mission.

Legislative Mandates: Laws or regulations passed by government bodies that require certain actions or create funding for specific purposes.

Letter of Inquiry (LOI): A brief initial proposal (typically 1-3 pages) introducing your organization and project to determine if a funder is interested before you invest time in a full proposal.

Letter of Intent (LOI): A brief preliminary document submitted to a funder before a full proposal, describing your organization and proposed project. LOIs help funders determine whether your project fits their priorities before you invest time in a full application. Some funders require LOIs; others accept them optionally.

Letter of Support/Letter of Commitment: A document from a partner organization, community leader, or stakeholder endorsing your project and sometimes specifying resources they’ll contribute or actions they’ll take.

Leveraged Resources: Additional funding or resources you secure that multiply the impact of a funder’s grant, such as matching funds from other sources.

Logic Model: A visual diagram that shows the logical relationships between your program’s resources (inputs), activities, outputs, and outcomes. Logic models help you think through how your program creates change and communicate your theory of change clearly to funders.

Matching Funds/Cost Sharing: Money or in-kind resources you provide from other sources to supplement a grant, often required by funders who want to see that others are also investing in your project.

Matching Gift/Matching Grant: A contribution that requires you to raise additional funds from other sources to “match” the foundation’s grant. For example, a 1:1 match means you must raise $1 for every $1 the foundation gives.

Measurable Outcomes: Specific, quantifiable changes you can track and verify through data collection, clearly stating what will change, by how much, and by when.

Methodological Limitations: Weaknesses or constraints in your evaluation approach, such as small sample size, lack of a control group, or reliance on self-reported data. Acknowledging these shows sophistication.

Methods Section: The part of your grant proposal that explains exactly how you’ll implement your project—your specific activities, timeline, staffing, and approach.

Metrics: Specific, quantifiable measures used to track progress and demonstrate results. Examples include number of people served, percentage improvement, or graduation rates.

Mission: A concise statement that defines your organization’s purpose and primary objectives. Your mission explains why your organization exists and what it aims to accomplish. Every program and proposal should connect clearly to your stated mission.

Mission Alignment: How closely an organization’s purpose and work correspond with a foundation’s funding priorities and values. Strong alignment is essential for funding success.

Mission Drift: When an organization strays from its core purpose, often by pursuing funding for programs that don’t truly fit its mission. This weakens organizational focus and authenticity.

Mission Statement: A concise declaration of your organization’s core purpose and who you serve. It answers why your organization exists.

Multi-Year Funding: A grant commitment that spans multiple years (typically 2-5 years) rather than requiring annual reapplication. This provides greater financial stability and reduces administrative burden.

Needs Statement: The section of your grant proposal that describes and documents the problem or gap your project will address, using data and evidence. Also called a problem statement.

Nonprofit Fundraiser: A professional who works to secure financial resources for a nonprofit organization. Fundraisers develop strategies, build relationships with donors and funders,
Nonprofit Speak: Jargon and buzzwords commonly used in the nonprofit sector that may be unclear to outsiders. Examples include capacity building, stakeholder engagement, and leveraging assets.

Operating Expenses: The ongoing costs required to run an organization, including salaries, rent, utilities, insurance, and office supplies. Some foundations restrict funding to programs and won’t cover operating expenses.

Organizational Budget: A financial plan showing all expected income and expenses for your nonprofit over a specific period (usually one fiscal year). Foundations review this to assess financial management and sustainability.

Organizational Capacity: Your charity’s ability to effectively deliver programs and achieve results based on your resources, systems, staff expertise, infrastructure, and financial stability. Demonstrating strong organizational capacity gives funders confidence you can successfully implement proposed projects.

Outcome Measures: Indicators that measure changes in people, communities, or systems resulting from your program—such as improved skills, changed behaviors, or better conditions. Different from outputs.

Outcomes: The meaningful changes that result from your program—the benefits or transformations experienced by participants or the community. Outcomes focus on what changes rather than what you do. Examples include improved health, increased employment, enhanced skills, or changed behaviors.

Outputs: The direct, countable products of your program activities—the things you produce or deliver. Examples include number of workshops conducted, clients served, meals provided, or training sessions completed. Outputs describe what you do but not the resulting change.

Overhead: See “Indirect Costs”—the general operating expenses required to run your organization that aren’t tied to specific programs. While some people view overhead negatively, adequate overhead is essential for organizational effectiveness and stability.

Partial Funding: When a funder provides only a portion of your total project budget and you must secure the remaining funds from other sources.

Peer Support Model: An approach where people with lived experience of a challenge (such as addiction, homelessness, or mental illness) provide support and guidance to others facing similar situations.

Pilot Program: A small-scale, preliminary version of a program designed to test whether an approach works before expanding or implementing it more widely.

Populations Served: The specific groups of people your organization works with, often defined by demographics, geography, or shared characteristics or challenges. Also called target population.

Pre-test/Post-test: An evaluation method that measures participants before and after a program to determine changes that occurred, such as testing knowledge before and after a training.

Private Foundation: A nonprofit organization funded by a single source (an individual, family, or corporation) that makes grants to other organizations. Subject to stricter regulations than public charities.

Problem Statement: The section of your proposal that clearly defines the specific issue or need your project will address. An effective problem statement uses data and evidence to establish the scope, urgency, and local impact of the problem, explaining why it matters and what happens if it goes unaddressed.

Process Measures: Indicators that track program implementation and activities, such as number of sessions held, attendance rates, or materials distributed. Show what you did, not what changed.

Program Area: A specific field, issue, or topic that a foundation focuses its grantmaking on, such as education, healthcare, environmental conservation, or arts and culture.

Program Description: The section of your proposal that explains exactly what you’ll do with the requested funds. This detailed narrative describes your approach, activities, timeline, staffing, target population, and how participants will move through your program from start to finish.

Program Description/Methods Section: The part of your grant proposal that explains exactly what activities you’ll conduct, who will benefit, your timeline, and how you’ll implement your project.

Program Design: The overall plan for how your program will work, including activities, timeline, staffing, and intended outcomes.

Program Model: Your specific approach to addressing a problem, including the theory, activities, and processes that define how your program works.

Program Officers: Foundation or funding organization staff members who manage grantmaking in specific program areas. Program officers review proposals, conduct site visits, communicate with applicants and grantees, and make funding recommendations. Building relationships with program officers can strengthen your proposals.

Program Services: Direct activities and services that fulfill your nonprofit’s mission, as opposed to administrative or fundraising activities.

Proposal Narrative: The main written section of your grant proposal that describes your organization, the need, your proposed program, and expected outcomes. This is typically the longest part of a proposal.

Prospect List: An organized list of foundations and other potential funders that you’re researching, cultivating, or planning to approach for funding. Also called a “prospect pipeline.”

Prospect Research: The process of identifying and evaluating potential funders to determine which ones are most likely to support your organization and specific projects.

Qualitative Methods: Approaches to collecting and analyzing non-numerical data like interviews, observations, focus groups, case studies, and open-ended survey responses. Qualitative methods help you understand people’s experiences, perspectives, and the meaning behind outcomes in ways numbers alone cannot capture.

Quantitative Metrics: Numerical measurements and statistical data used to assess program results. Quantitative metrics include things you can count: percentages, rates, scores, frequencies, and amounts. These metrics allow for statistical analysis and comparison across time or groups.

Replicable Model: A program designed so other organizations can adopt and implement the same approach in their communities with similar success.

Replication: Adapting and implementing a successful program model in a new location or context. Funders often value programs with replication potential because they can expand impact.

Reporting Requirements: The information grantees must provide to funders during and after the grant period, such as progress reports, financial statements, and final evaluations.

Request for Proposals (RFP): A formal announcement from a funder inviting nonprofits to submit proposals for a specific funding opportunity, usually with detailed guidelines and requirements.

Return on Investment (ROI): Return on Investment—a business term measuring the benefit or return received relative to the cost. Corporate funders often think about their charitable giving in ROI terms.

Revenue Streams: The different sources from which your organization receives money, such as individual donations, foundation grants, government contracts, earned income, and special events.

Root Causes: The underlying, fundamental factors that create or perpetuate a problem, as opposed to surface-level symptoms. Addressing root causes means tackling systemic issues rather than just treating immediate effects. Funders increasingly want to support work that addresses root causes.

Scaling: Expanding a successful program to serve more people, operate in more locations, or increase impact. Different from replication, which involves others adopting your model.

Schedule B: The section of IRS Form 990 that lists all contributors who gave more than $5,000 to an organization. For nonprofits, this information is often redacted for privacy, but it helps identify which foundations fund similar organizations.

Self-Reported Data: Information provided directly by program participants through surveys or interviews, rather than measured objectively. Can be valuable but has limitations funders want you to acknowledge.

Site Visit: In-person or virtual visits by funders to see your programs in action, meet staff and participants, and observe your operations firsthand. Site visits help funders understand your work more deeply and strengthen relationships. They may occur during proposal review or as part of ongoing grant monitoring.

SMART Framework: A method for writing clear objectives where goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Helps create strong, evaluable outcomes.

SMART Objectives: A framework for writing clear, well-defined objectives. SMART stands for Specific (clearly defined), Measurable (quantifiable), Achievable (realistic), Relevant (aligned with goals), and Time-bound (includes deadlines). SMART objectives make it clear what success looks like and when you’ll achieve it.

Social Enterprise: A revenue-generating business operated by a nonprofit that advances its mission while producing income to support operations.

Solicited Proposal: A grant application submitted in response to a funder‘s invitation or request, such as after a successful letter of inquiry or in response to an RFP. Opposite of unsolicited.

Stakeholders: Individuals or groups with an interest in your organization or project, including clients, staff, board members, volunteers, partners, funders, and community members.

Statement of Need: The section of your grant proposal that establishes the problem you’re addressing, who it affects, why it exists, and why urgent action is required.

Stewardship: The ongoing process of building and maintaining strong relationships with funders through thank-you notes, impact updates, invitations to events, and regular communication—not just when asking for money.

Strategic Direction/Strategic Initiative: The overarching goals and priorities that guide a foundation’s grantmaking decisions, often outlined in strategic plans that cover 3-5 years. These may shift as foundations evolve.

Strategic Plan: A document outlining your organization’s long-term direction, including mission, vision, goals, and strategies for the next 3-5 years.

Strategic Priorities: The specific goals or focus areas a funder emphasizes in their grantmaking, which evolve based on their assessment of needs and opportunities.

Subject Area: The specific topics or causes that a foundation funds, such as youth development, affordable housing, or climate change. Similar to “program area.”

Sustainability: Your plan for continuing program activities and maintaining impact after grant funding ends, through diverse funding sources, earned revenue, or other means.

Sustainability Plan: Your strategy for continuing a program after initial grant funding ends. A sustainability plan might include diversifying funding sources, building earned revenue, reducing costs, securing multi-year commitments, or integrating the program into ongoing operations. Funders want to know their investment will have lasting impact.

Systemic Change: Addressing the root causes of problems by changing policies, practices, or systems rather than just treating symptoms. Many funders prioritize systemic change over direct service.

Systemic Issues: Problems embedded in larger systems, structures, policies, or institutions rather than caused by individual behaviors alone. Systemic issues require addressing institutional practices, policies, or social structures. Examples include systemic racism, structural poverty, or institutional barriers to healthcare access.

Systems Change: Efforts to alter underlying structures, policies, practices, or power dynamics that perpetuate problems, rather than only addressing individual needs or symptoms.

Target Population: The specific group of people your program is designed to serve, defined by characteristics like age, income level, geographic location, or particular challenges they face. Clearly defining your target population helps funders understand exactly who will benefit and whether that aligns with their priorities.

Tax Return: See Form 990/990-PF. The annual financial report that tax-exempt organizations must file with the IRS, which becomes public record.

Testimonials: Statements from clients, partners, community members, or other stakeholders describing their positive experiences with your organization. Testimonials provide third-party validation of your effectiveness and demonstrate real-world impact through personal perspective.

Theory of Change: Your explanation of how and why your programs create the outcomes you seek—the logical pathway from activities to impact. A theory of change articulates your assumptions about what needs to happen for people or communities to experience lasting positive change.

Third-Party Validation: Recognition, endorsement, or evidence from external, objective sources (such as media coverage, awards, or independent evaluations) that builds credibility for your organization.

Total Project Cost: The complete budget for a project, including all expenses from all funding sources, not just what you’re requesting from one funder.

Track Record: Your organization’s history of past performance and achievements. A strong track record demonstrates that you’ve successfully delivered programs, achieved outcomes, and managed resources effectively in the past—which predicts you’ll do so again with new funding.

Trustee: A member of a foundation’s governing board responsible for making final decisions about which grant proposals to fund. Similar to a nonprofit board member but specifically for foundations.

Unrestricted Reserve Fund: Money set aside that can be used for any organizational purpose without donor restrictions, providing financial stability and flexibility.

Unsolicited Proposals: Grant proposals submitted to a funder without an invitation or prior indication of interest. Some funders only accept invited proposals, while others welcome unsolicited applications. Always check whether a funder accepts unsolicited proposals before investing time in a full application.

Vision Statement: A declaration of what your organization hopes to achieve in the future or what the world would look like if your mission is fully realized. More aspirational than a mission statement.

Warm Introduction: When someone with an existing relationship to a foundation (board member, current grantee, mutual contact) personally introduces your organization to the foundation. This significantly increases your chances of getting a meeting or serious consideration.

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Alan Sharpe Grant Writing Instructor & Author

Alan Sharpe teaches the top-rated Udemy course, "Alan Sharpe’s Grant Writing Masterclass." Author of Write to Win: A Comprehensive & Practical Guide to Crafting Grant Proposals that Get Funded. Publisher of grantwritinganswers.com.

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