Grant glossary: 160 terms every grant writer should know

Grant work has its own vocabulary, and federal grants add a second one. This glossary gives you plain-English definitions you can rely on. Federal terms follow the Uniform Guidance definitions at 2 CFR 200.1 as of October 2026, simplified where the regulation is long. Dollar thresholds are noted with the date they apply, because several have changed recently.

Jump to: 0-9 · A · B · C · D · E · F · G · I · K · L · M · N · O · P · Q · R · S · T · U · V · W

0-9

501(c)(3) organization

A nonprofit organization recognized by the IRS as tax-exempt under Section 501(c)(3) of the Internal Revenue Code because it is organized and operated for charitable, educational, religious, scientific, or similar purposes. Every 501(c)(3) is classified as either a public charity or a private foundation, and most foundation grants go to 501(c)(3) public charities.

509(a) status

The section of the Internal Revenue Code that determines whether a 501(c)(3) organization is a public charity or a private foundation. Funders often check 509(a) status because private foundations face extra requirements, such as expenditure responsibility, when they grant to organizations that are not public charities.

A

Activities

The actions a program carries out to achieve its objectives, such as tutoring sessions, trainings, outreach, or case management. In a logic model, activities sit between inputs and outputs.

Advance payment

A payment a federal agency or pass-through entity makes before the recipient disburses the funds for program purposes. Recipients using advance payments must keep the time between receiving and spending the funds to a minimum.

Allowable cost

A cost that may be charged to a grant under the funder's rules. For federal awards, a cost generally must be necessary, reasonable, allocable to the award, consistently treated, adequately documented, and not prohibited by the cost principles or award terms (2 CFR 200.403).

Assistance Listing

The publicly available listing of federal assistance programs, managed by the General Services Administration at SAM.gov. Each program has an Assistance Listing number, formerly known as a CFDA number, that identifies it on applications and audit schedules.

Audit finding

A deficiency an auditor is required to report in the schedule of findings and questioned costs in a single audit, such as a material weakness in internal control or noncompliance with award requirements.

Authorized Organization Representative (AOR)

On Grants.gov, a member of your organization authorized by the E-Business Point of Contact to submit applications on the organization's behalf. Without an active AOR role, you cannot submit a federal application.

Award

A legal commitment of funds from a funder to a recipient. In federal usage, "Federal award" means both the financial assistance and the instrument that sets its terms, such as a grant agreement or cooperative agreement.

Award letter

The written notice from a funder that a grant has been approved, usually stating the amount, purpose, grant period, payment schedule, and reporting requirements. Some award letters must be signed and returned before funds are released.

B

Block grant

Federal funding given to states or local governments for a broad purpose, with considerable flexibility in how it is spent. Nonprofits often receive block grant funds indirectly, as subrecipients or contractors of a state or local agency.

Board-designated funds

Unrestricted funds that a nonprofit's board has set aside for a specific purpose, such as a reserve. Because the board, not a donor, set the limitation, the board can change it; these funds are not donor-restricted.

Budget

The financial plan for a grant-funded project or organization. For federal awards, the budget is the plan the agency approves during the award process or in later amendments, and it may include the federal share and the non-federal share.

Budget justification

A narrative explaining each line of a grant budget: what it is, how it was calculated, and why the project needs it. Also called a budget narrative. See our budget justification template.

Budget period

The time interval during which a recipient is authorized to incur financial obligations for a funded portion of a federal award. A period of performance can contain one or more budget periods.

C

Capacity building

Funding or support that strengthens an organization's ability to fulfill its mission, such as technology, staff training, financial systems, strategic planning, or fundraising infrastructure, rather than paying for direct program delivery.

Capital grant

A grant for buildings, land, major renovations, or major equipment. Capital grants are often tied to a capital campaign and may require matching funds or proof that the rest of the project is funded.

Capital expenditures

Spending to acquire capital assets, such as land, buildings, or equipment, or to make improvements that materially increase their value or useful life. Under the Uniform Guidance, capital expenditures are excluded from MTDC.

Challenge grant

A grant paid only if the recipient raises a specified amount from other sources, often by a deadline. Challenge grants are used to motivate other donors and to build a broader funding base.

Closeout

The process by which a funder confirms that all required work and administrative actions on a grant are complete. For federal awards, recipients generally must submit all final reports and liquidate all obligations within 120 calendar days after the period of performance ends (2 CFR 200.344).

Cognizant agency for indirect costs

The federal agency responsible for reviewing, negotiating, and approving an organization's indirect cost rate on behalf of all federal agencies. For most nonprofits, this is the agency that provides the most direct federal funding.

Community foundation

A public charity that pools gifts from many donors to support a defined geographic area, often managing donor-advised funds alongside its own competitive grantmaking. See community foundations.

Compliance supplement

An annually updated OMB document that tells auditors which compliance requirements to test for federal programs during a single audit. Reading the section for your program shows you what auditors will look for.

Continuation funding

Funding for the second or later budget period within an approved federal period of performance. Continuation awards usually depend on satisfactory progress and the availability of funds.

Contract (federal assistance)

In federal financial assistance, a legal instrument a recipient or subrecipient uses to buy goods or services under a federal award. A contract is a procurement relationship, which is different from a subaward that carries out part of the program.

Contractor

An entity that receives a contract to provide goods or services. Under the Uniform Guidance, contractors are distinguished from subrecipients, and most federal award requirements do not flow down to them.

Cooperative agreement

A form of federal financial assistance, like a grant, used to carry out a public purpose, but with substantial involvement by the federal agency or pass-through entity in carrying out the activity (2 CFR 200.1).

Corporate foundation

A private foundation created and funded by a company, usually governed separately from the company but often aligned with its business interests, locations, and employee priorities. See corporate giving.

Corporate giving program

Charitable giving made directly by a company rather than through a separate foundation, often including sponsorships, product donations, employee matching gifts, and volunteer programs.

Cost sharing

The portion of project costs not paid by the federal funder. It includes matching, which refers to required levels of cost share (2 CFR 200.1). Foundations use the same idea when they ask what other sources support a project.

Cover letter

A one-page letter that accompanies a full proposal, introducing the organization and the request. See our cover letter template.

Cultivation

The process of building a relationship with a prospective funder before and between requests, through research, conversations, invitations, and updates.

D

De minimis rate

An indirect cost rate that federal recipients without a current negotiated rate may elect instead of negotiating one. As of October 2026, it is up to 15 percent of modified total direct costs, requires no documentation to justify, and may be used indefinitely (2 CFR 200.414(f)). Some agencies differ: NIH applies a 10 percent de minimis rate under its appropriations law (NOT-OD-26-072).

Decline

A funder's decision not to fund a request. Also called a declination. A decline is often a starting point for a conversation about fit and future requests.

Direct costs

Costs that can be identified specifically with a particular grant, project, or program, such as program staff salaries, supplies, and participant expenses. They contrast with indirect costs.

Disallowed cost

A charge to a federal award that the agency or pass-through entity determines to be unallowable under statutes, regulations, the Uniform Guidance, or the award terms. Disallowed costs generally must be repaid.

Discretionary award

A federal award in which the agency, under its statutory authority, uses judgment to select the recipient or set the funding amount, usually through competition. Most nonprofit federal applications are for discretionary awards.

Donor-advised fund (DAF)

A separately identified fund or account maintained and operated by a 501(c)(3) sponsoring organization, to which donors contribute and over which they keep advisory privileges about grants and investments. The sponsoring organization has legal control, so grants come from the sponsor, not the donor.

Drawdown

Requesting payment of federal award funds through the agency's payment system, such as HHS's Payment Management System or Treasury's ASAP. Recipients must draw funds only as needed, timed to actual cash requirements.

E

E-Business Point of Contact (EBiz POC)

On Grants.gov, the person registered as responsible for administering their organization's grant activities, including assigning roles such as Authorized Organization Representative. The EBiz POC is set in the organization's SAM.gov registration.

EIN

Employer Identification Number, the nine-digit number the IRS assigns to identify an organization for tax purposes. Funders use it to confirm tax-exempt status.

Eligibility

The criteria an applicant must meet to apply for a grant, such as organization type, location, budget size, or program area. Always confirm eligibility before investing time in an application.

Endowment

A fund, usually invested, whose principal is intended to be preserved while its earnings support the organization or a purpose. Many foundations do not fund endowments.

Equipment

For federal awards, tangible personal property with a useful life of more than one year and a per-unit acquisition cost at or above the lesser of the recipient's capitalization level or $10,000 (2 CFR 200.1, as revised in 2024). Lower-cost items are supplies.

Evaluation plan

The section of a proposal that explains how you will measure whether the program achieved its objectives: what you will measure, how, when, and by whom. See our evaluation plan guide.

Executive summary

A short overview at the start of a proposal that summarizes the need, project, outcomes, budget, and request. Reviewers often read it first and sometimes read only it.

Expenditure responsibility

A set of procedures a private foundation must follow under IRC Section 4945(h) when it makes certain grants, such as to organizations that are not public charities, including pre-grant inquiry, a written agreement, and reports from the grantee.

Expenditures

Charges a recipient or subrecipient makes to a federally funded project or program. Expenditures determine, among other things, whether an organization crosses the single audit threshold.

F

Family foundation

A private foundation whose funds come from one family and whose governance includes family members. Family foundations range from very small and informal to large and professionally staffed.

Federal Audit Clearinghouse (FAC)

The OMB-designated repository where organizations subject to a single audit submit their audit reporting packages and data collection forms.

Federal Award Identification Number (FAIN)

The unique number a federal agency assigns to an award. Pass-through entities must include it in subaward agreements, and recipients use it on reports and audit schedules.

Federal financial assistance

Assistance that recipients receive or administer as grants, cooperative agreements, non-cash contributions or donations of property, direct appropriations, food commodities, and other financial assistance. For audit purposes, it also includes loans, loan guarantees, interest subsidies, and insurance.

Federal Financial Report (SF-425)

The government-wide form, and set of data elements, federal recipients use to report expenditures and cash status on an award (2 CFR 200.328).

Federal share

The portion of a federal award's costs paid with federal funds, as opposed to the non-federal share covered by cost sharing.

Fiscal sponsor

An established nonprofit, usually a public charity, that accepts and manages charitable funds for a project or group that lacks its own tax-exempt status. The sponsor takes on legal and financial oversight, often for a fee. See fiscal sponsorship.

Fixed amount award

A federal grant or cooperative agreement that provides a specific amount of funding without regard to actual costs incurred. Accountability rests mainly on performance and results.

Form 990

The annual information return most tax-exempt organizations file with the IRS. As of October 2026, organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more, file the full Form 990; smaller organizations may file Form 990-EZ, and those with gross receipts normally of $50,000 or less may file the Form 990-N e-Postcard.

Form 990-PF

The annual return every private foundation files, regardless of size. It lists the foundation's assets, grants paid, officers, and often application information, making it a key tool for funder research. See researching funders with 990s.

Formula grant

Federal funding allocated to states, territories, or local governments according to a formula set in law or regulation. Formula awards are non-discretionary, and nonprofits usually access them as subrecipients.

FTE

Full-time equivalent, a way to express staff effort. A 1.0 FTE position is full-time; 0.5 FTE is half-time. Budgets often show personnel as salary times FTE or percent effort.

Fringe benefits

Employer costs for employee benefits beyond salary, such as payroll taxes, health insurance, retirement contributions, and workers' compensation. Budgets often show fringe as a percentage of salaries.

G

General operating support

A grant that can be used for any purpose within an organization's mission, including salaries, rent, and administration. Also called unrestricted or core support.

Goal

A broad statement of the long-term change a program or organization seeks. Goals are made concrete through measurable objectives. See goals and objectives.

Grant

A transfer of money or property from a funder to a recipient to carry out a purpose, without the funder receiving goods or services in return. For federal awards, a grant agreement is distinguished from a cooperative agreement by the absence of substantial federal involvement (2 CFR 200.1).

Grant agreement

The legal document setting out the terms of a grant: amount, purpose, period, payment, reporting, and other conditions. Signing it creates binding obligations.

Grant cycle

The recurring schedule a funder uses to accept, review, and decide on applications, such as quarterly, twice a year, or annually.

Grant Professional Certified (GPC)

A credential for experienced grant professionals administered by the Grant Professionals Certification Institute (GPCI). It requires documented experience and passing an exam, and must be renewed every three years.

Grantee

An organization that receives a grant. Federal regulations use the term "recipient."

Grants.gov

The federal government's central website for finding and applying for federal grant opportunities. Applicants must be registered in SAM.gov before applying. See our Grants.gov guide.

Guidelines

A funder's published description of what it funds, who is eligible, how to apply, and when. Reading guidelines line by line is the first step in any application.

I

Impact

The long-term, broad change a program contributes to, such as improved community health or graduation rates. Impact is usually beyond what a single grant can fully achieve or measure.

In-kind contribution

A non-cash contribution of goods, services, space, or volunteer time. In federal awards, third-party in-kind contributions can count as cost sharing if they meet the Uniform Guidance's requirements.

Indicator

A specific, measurable signal used to track progress toward an outcome, such as "percentage of students reading at grade level on the spring assessment."

Indirect costs

Costs incurred for a common or joint purpose that benefit more than one program and are not readily assignable to a specific one, such as accounting, human resources, facilities, and executive leadership (2 CFR 200.1). Often called overhead or facilities and administrative (F&A) costs. See indirect costs.

Indirect cost rate proposal

The documentation an organization prepares and submits to its cognizant agency to establish a negotiated federal indirect cost rate.

Inputs

The resources a program uses: staff, volunteers, funding, facilities, equipment, partners, and expertise. Inputs are the first column of a logic model.

Intermediary

An organization that receives funds and regrants or distributes them to other organizations, such as a community foundation, a fiscal sponsor, or a state agency passing through federal funds.

Internal controls

Processes an organization designs and implements to provide reasonable assurance of effective operations, reliable reporting, and compliance with laws and regulations. Federal recipients must maintain effective internal controls over awards.

Invitation only

A funder policy of accepting proposals only from organizations it invites, rather than accepting unsolicited requests. Respect these policies; contact usually comes through introductions or the funder's own research.

K

Key personnel

Staff or contractors named in a federal award by name or position as essential to the project. A change in key personnel requires the agency's prior written approval (2 CFR 200.308(f)(2)).

L

Letter of inquiry (LOI)

A short letter, often one to two pages, that summarizes a project and asks whether a funder would welcome a full proposal. Some funders use LOIs to screen all requests. See our letter of inquiry template.

Letter of intent

A brief notice that an organization intends to apply. Federal agencies sometimes request one to plan reviews, and it may be required or optional. Some foundations use "letter of intent" to mean a letter of inquiry, so read the instructions.

Letter of support

A letter from a partner, community leader, or stakeholder endorsing your project or confirming a commitment. The strongest letters describe a specific role or resource rather than general praise.

Leverage

Using one grant to attract additional funding or resources, such as a challenge grant that motivates other donors, or a federal award that brings in matching funds.

Logic model

A visual summary of how a program works, showing inputs, activities, outputs, and short-, medium-, and long-term outcomes, along with assumptions and external factors. See our logic model template.

M

Matching funds

Funds or in-kind contributions an applicant must provide toward a project as a condition of a grant, often stated as a ratio such as 1:1. In federal usage, matching is the required portion of cost sharing.

Matching gift

A gift a company makes to a nonprofit to match a donation from one of its employees, often at a one-to-one or higher ratio. Matching gift programs are usually part of corporate giving.

Merit review

The process a federal agency uses to evaluate competitive applications against the criteria published in the notice of funding opportunity, usually through reviewers who score each application.

Micro-purchase threshold

The dollar amount at or below which a federal recipient may buy goods or services without soliciting competitive quotes, if the price is reasonable. The Uniform Guidance ties it to the Federal Acquisition Regulation, where it rose to $15,000 effective October 1, 2025; recipients may set a lower threshold.

Mission statement

A short statement of an organization's purpose: what it does, for whom, and why. Funders read it to judge alignment with their priorities.

Modified total direct costs (MTDC)

The base used for many federal indirect cost rates, including the de minimis rate. It includes direct salaries and wages, fringe benefits, materials and supplies, services, travel, and up to the first $50,000 of each subaward, and excludes equipment, capital expenditures, patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward over $50,000 (2 CFR 200.1).

Multi-year grant

A grant committed for more than one year, sometimes paid in annual installments that depend on satisfactory progress. Multi-year grants give organizations stability and are a core practice of trust-based funders.

N

Negotiated indirect cost rate agreement (NICRA)

The agreement between an organization and its cognizant federal agency that sets the organization's indirect cost rate or rates. Federal agencies must generally accept a negotiated rate, and pass-through entities must accept subrecipients' federally negotiated rates (2 CFR 200.414).

No-cost extension

An extension of the period of performance that does not add funds. For federal awards, recipients may be authorized to take a one-time extension of up to 12 months with notice at least 10 calendar days before the end date; other extensions need prior approval (2 CFR 200.308).

Non-federal entity

A state, local government, Indian Tribe, institution of higher education, or nonprofit organization that carries out a federal award as a recipient or subrecipient.

Nonprofit organization (federal definition)

Under 2 CFR 200.1, an organization that is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; is not organized primarily for profit; uses net proceeds to maintain or expand its operations; and is not an institution of higher education.

Notice of award

The official document from a federal agency that awards funds and sets out the award's terms and conditions. Read it in full; it often contains requirements that were not in the funding notice.

Notice of funding opportunity (NOFO)

A formal federal announcement that funding is available, describing eligibility, evaluation criteria, required application components, and how to apply. It may be called a program announcement, notice of funding availability, solicitation, or another name (2 CFR 200.1). See reading a NOFO.

O

Objective

A specific, measurable result a project commits to achieving within the grant period, in support of a broader goal. Strong objectives are usually written as SMART objectives.

Obligations (financial)

Orders placed, contracts and subawards made, and similar transactions that require payment under a federal award. Costs are generally allowable only if obligated during the approved budget period.

Office of Management and Budget (OMB)

The office in the Executive Office of the President that issues government-wide grants policy, including the Uniform Guidance at 2 CFR 200.

Operating foundation

A private foundation that devotes most of its resources to running its own charitable programs rather than making grants to others. Private operating foundations meet special tests under the Internal Revenue Code.

Outcomes

The changes that result for participants or communities because of a program, such as gains in knowledge, skills, behavior, or conditions. Outcomes are usually described as short-term, medium-term, and long-term.

Outputs

The direct, countable products of a program's activities, such as the number of sessions held, people served, or materials distributed. Outputs show what you did; outcomes show what changed.

Overhead

An informal term for indirect or administrative costs. Many funders and nonprofit leaders now prefer "indirect costs" or "full costs," because "overhead" can suggest these costs are less essential.

P

Participant support costs

Direct costs paid to or on behalf of participants in a federal project, such as stipends, travel allowances, registration fees, temporary dependent care, and per diem. They are excluded from MTDC, and moving them to other categories requires prior approval (2 CFR 200.1, 200.308).

Pass-through entity

A recipient or subrecipient that provides a subaward to another organization to carry out part of a federal program. A state agency that subawards federal funds to local nonprofits is a common example. See subawards and pass-through.

Payout requirement

The rule that private foundations must distribute a minimum amount each year for charitable purposes. The distributable amount is based on the foundation's minimum investment return, generally 5 percent of the value of its non-charitable-use assets, with adjustments (IRC Section 4942).

Period of performance

The time between the start and end dates of a federal award, which may include one or more budget periods. Stating the period does not commit the agency to fund beyond the current budget period.

Pre-award costs

Costs incurred before the federal award date. If the agency has waived prior approval, recipients may incur costs up to 90 calendar days before the award date, at their own risk (2 CFR 200.308(g)(1)).

Prior approval

Written approval obtained in advance from an authorized official of a federal agency or pass-through entity for certain costs or program changes (2 CFR 200.1). Foundations have similar requirements for significant changes.

Private foundation

A 501(c)(3) organization that does not qualify as a public charity, typically funded by a single individual, family, or company. Private foundations file Form 990-PF, must meet an annual payout requirement, and pay an excise tax on net investment income.

Program income

Gross income a federal recipient earns that is directly generated by a supported activity or earned as a result of the award during the period of performance, such as fees for services. Interest on advances of federal funds is not program income (2 CFR 200.1).

Program officer

A funder's staff member who reviews requests, recommends grants, and monitors active grantees. Program officers are often the most important relationship you have with a funder. See funder relationships.

Program-related investment (PRI)

An investment by a private foundation, such as a low-interest loan, whose primary purpose is charitable, where producing income or appreciation is not a significant purpose and there is no lobbying or political purpose. PRIs count toward a foundation's payout requirement.

Project grant

A grant restricted to a specific project or program, as opposed to general operating support. Most foundation grants to small nonprofits are project grants.

Proposal

A formal written request for funding, usually including a need statement, program description, objectives, evaluation plan, organizational information, and budget. See the anatomy of a grant proposal.

Proposal costs

The costs of preparing applications for grants and contracts. For federal awards, proposal costs of the current accounting period normally should be treated as indirect costs rather than charged directly to an award (2 CFR 200.460).

Public charity

A 501(c)(3) organization that receives substantial support from the general public or government, or that qualifies by its function, such as a school, hospital, or church. Most nonprofits seeking grants are public charities.

Public support test

The IRS test, reported on Form 990 Schedule A, that many public charities must meet to show they receive enough support from the public, generally measured over a five-year period. Failing the test can lead to reclassification as a private foundation.

Q

Questioned cost

An amount an auditor flags because, in the auditor's judgment, it may not comply with award requirements, lacked adequate documentation at the time of the audit, or appeared unreasonable. A questioned cost is not automatically disallowed; the agency makes that decision.

R

Recipient

An entity that receives a federal award directly from a federal agency. The term does not include subrecipients, or individuals who are participants or beneficiaries of the award.

Record retention

The period records must be kept. For federal awards, records generally must be kept for three years from the date the final financial report is submitted, longer if litigation, claims, or audits are pending (2 CFR 200.334).

Reimbursement basis

A payment method in which the funder pays the recipient after the recipient spends its own funds and documents the costs. Reimbursement grants require enough cash to cover expenses until payment arrives.

Renewal

A new grant from the same funder for continuing work, usually after a prior grant ends. A federal renewal award begins a new, distinct period of performance.

Request for applications (RFA)

A funder's announcement inviting applications, often for a specific program or priority. Many agencies and foundations use RFA and RFP interchangeably.

Request for proposals (RFP)

A funder's announcement inviting proposals on a defined topic, with eligibility rules, required content, review criteria, and a deadline. Treat the RFP as the scoring guide for your proposal.

Restricted funds

Funds a donor or funder has limited to a specific purpose or time period. Under FASB ASU 2016-14, nonprofits report them as net assets with donor restrictions until the restriction is met.

Review panel

A group of reviewers, often outside experts or community members, who read and score applications. Federal agencies and many larger foundations use panels guided by a scoring rubric.

S

SAM.gov

The System for Award Management, the federal website where organizations register to do business with the government and receive a Unique Entity Identifier. Applicants and recipients must keep registration active and update it at least annually. See SAM.gov registration.

Seed money

A grant that helps start a new organization or project. Seed funders often expect the recipient to secure other funding to sustain the work.

SF-424

The standard Application for Federal Assistance form, which collects basic information about the applicant and request. Most federal applications include it along with related forms.

SF-424A

The standard budget form for federal non-construction applications. It organizes costs into object class categories such as personnel, fringe benefits, travel, equipment, supplies, contractual, construction, other, and indirect charges.

Simplified acquisition threshold

The dollar amount below which federal recipients may use small-purchase procurement methods. The Uniform Guidance uses the Federal Acquisition Regulation threshold, which rose to $350,000 effective October 1, 2025; recipients may set a lower threshold.

Single audit

An organization-wide audit of financial statements and federal award compliance required when a non-federal entity expends $1,000,000 or more in federal awards in its fiscal year (2 CFR 200.501). See our single audit guide.

Site visit

A visit by a funder to see a program and meet its leaders, before or during a grant. Treat it as a conversation and a chance to show your work, not a performance.

SMART objectives

Objectives that are specific, measurable, achievable, relevant, and time-bound. Some versions use "attainable" or "realistic," but the purpose is the same. Try our SMART objective builder.

Sponsoring organization

The 501(c)(3) organization that maintains and controls donor-advised funds. Grants from a DAF are made by the sponsoring organization on a donor's recommendation.

Statement of need

The section of a proposal that describes the problem a project addresses, who is affected, its scale and causes, and the gap the project fills. See our statement of need template.

Stewardship

Everything an organization does after receiving a grant to show gratitude, report results, and build the relationship, including thank-yous, reports, updates, and invitations.

Subaward

An award a pass-through entity makes to a subrecipient to carry out part of a federal award. It does not include payments to a contractor, beneficiary, or participant (2 CFR 200.1).

Subrecipient

An entity that receives a subaward from a pass-through entity to carry out part of a federal program. Subrecipients must follow the federal requirements that flow down through the subaward.

Supplanting

Using grant funds to replace, rather than add to, funds that would otherwise be spent on the same purpose. Many federal programs prohibit supplanting by statute, and foundations often ask whether their grant will add new capacity or replace existing funding.

Supplies

For federal awards, all tangible personal property other than equipment. A computing device is a supply if its cost is below the lesser of the recipient's capitalization level or $10,000, regardless of useful life (2 CFR 200.1).

Sustainability plan

The part of a proposal that explains how the project or its results will continue after the grant ends, through diversified funding, partnerships, earned revenue, or integration into ongoing operations. See sustainability plans.

T

Technical assistance

Expert help, training, or advice to strengthen an organization or project, provided by a funder, intermediary, or consultant. Some grants include technical assistance alongside funding.

Termination

Ending a federal award, in whole or in part, before the planned end of the period of performance. It does not include discontinuing an award because of a lack of available funds (2 CFR 200.1). Termination grounds are listed in 2 CFR 200.340; as of October 2026, OMB has proposed changes that have not been finalized.

Theory of change

An explanation of how and why a set of actions is expected to lead to a desired long-term change, including the assumptions linking each step. A logic model is often a simplified picture of a theory of change.

Third-party in-kind contributions

The value of non-cash contributions of property or services that benefit a federally funded project and are contributed without charge by non-federal third parties (2 CFR 200.1). They can count as cost sharing if they meet the requirements of 2 CFR 200.306.

Total direct costs

The sum of all direct costs in a project budget. Some funders apply indirect rates to total direct costs, while federal rates usually use a modified base such as MTDC.

Trust-based philanthropy

An approach to grantmaking that aims to shift power toward grantees. The Trust-Based Philanthropy Project describes six practices: multi-year unrestricted funding, doing the homework, simplifying paperwork, transparency and responsiveness, soliciting and acting on feedback, and support beyond the check.

U

Uniform Guidance

The common name for 2 CFR Part 200, OMB's government-wide rules for federal grants and cooperative agreements, covering administrative requirements, cost principles, and audit requirements. It was substantially revised in 2024; a further proposed rewrite published May 29, 2026, had not been finalized as of October 2026. See our Uniform Guidance guide.

Unique Entity Identifier (UEI)

The universal identifier assigned by SAM.gov to uniquely identify an entity (2 CFR Part 25). It replaced the DUNS number and must be included on federal applications.

Unliquidated financial obligation

A financial obligation a recipient has incurred under a federal award but not yet paid (cash basis) or recorded as an expenditure (accrual basis). All obligations must be liquidated within the closeout deadline.

Unobligated balance

The amount of a federal award that the recipient has not yet obligated. Unobligated funds not authorized to be retained must be refunded at closeout.

Unrestricted funds

Funds without donor-imposed limits on purpose or time. Under FASB ASU 2016-14, nonprofits report them as net assets without donor restrictions.

Unsolicited proposal

A proposal submitted to a funder that did not request it through an open call. Many foundations state whether they accept unsolicited proposals; if they say no, do not send one.

V

Voluntary committed cost sharing

Cost sharing an applicant voluntarily pledges in a federal proposal's budget, beyond any requirement. Once accepted, it becomes a binding requirement of the award, so commit only what you can document.

W

Workspace (Grants.gov)

The Grants.gov feature that lets members of an organization complete federal application forms online, collaborate on different sections, and submit through an Authorized Organization Representative.

Written acknowledgment

The receipt a charity provides so a donor can claim a charitable deduction for a single contribution of $250 or more. Under IRS Publication 1771, it must state the amount of cash (or describe non-cash property) and whether any goods or services were provided in exchange.