Grant proposal glossary: 50 funding terms explained

A

Activity

A specific task the project carries out, such as a training session or a survey. Activities produce outputs.

Annex (annexure)

A supporting document attached at the end of a proposal, such as registration certificates, audited accounts or letters of support.

Assumption

A condition outside the project’s control that must hold true for activities to lead to results, recorded in a logical framework.

Audited accounts

Financial statements checked by an independent auditor. Most funders ask for the last two or three years.

B

Baseline

Measurements of the situation before a project starts, used to show how much has changed.

Beneficiary

A person or group who benefits from a project. Direct beneficiaries take part; indirect beneficiaries gain from the change without taking part.

Budget justification

A short explanation of how the main budget costs were calculated and why they are needed. Also called a budget narrative.

C

Call for proposals

A funder’s public invitation to apply for grants, setting out priorities, rules and deadlines. Also called a request for proposals (RFP).

Capacity building

Activities that strengthen the skills, systems or resources of people or organisations so that they can do more on their own.

Co-funding

Money for the same project from sources other than the funder, including your own funds. Some funders require a minimum share. Also called match funding.

Concept note

A short summary of a project, usually two to three pages, that lets a funder decide whether to invite a full proposal.

Corporate social responsibility (CSR)

A company’s contribution to social or environmental causes. In some countries, such as India, larger companies must spend a share of their profits on CSR.

Covering letter

A one-page letter that introduces a proposal, states the amount requested and is signed by a senior leader.

D

Deliverable

A tangible product or result the project promises to hand over, such as a report, a trained group or a built facility.

Direct costs

Costs that can be traced to a specific project activity, such as project staff, materials, travel and training.

Disaggregated data

Data broken down by characteristics such as sex, age, disability, location or income, so that differences between groups are visible.

Do no harm

The principle that a project must avoid creating new risks or tensions for the people and places it works with.

Due diligence

The checks a funder carries out on an applicant before awarding a grant: registration, finances, governance and track record.

E

Eligibility criteria

The rules an applicant or project must meet to be considered, such as legal form, location, size or sector.

Evaluation

A systematic assessment of whether a project achieved its intended results, usually at mid-term and at the end.

Executive summary

A one-page overview of the whole proposal, written last and read first.

Exit strategy

The plan for ending external support responsibly while making sure the results continue.

F

Fiscal sponsor

A registered organisation that receives and manages a grant on behalf of a group that is not itself eligible.

G

Gender analysis

An examination of how a problem and a project affect women, men, girls and boys differently, used to design fair and effective activities.

Goal

The long-term change a project contributes to, beyond what the project alone can achieve. Also called overall objective or impact.

Grant agreement

The contract between the funder and the grantee that sets the amount, purpose, conditions and reporting rules.

I

Impact

The long-term, wider change a project contributes to, such as reduced poverty or improved health.

In-kind contribution

A non-cash contribution such as volunteer time, donated premises or equipment, valued in the budget.

Indicator

A measurable sign that shows whether an output or outcome has been achieved, such as the percentage of students passing a test.

Indirect costs

Shared organisational costs that support a project but cannot be traced to it alone, such as rent, finance and management. Also called overheads.

L

Letter of inquiry (LOI)

A short letter describing a project and asking whether the funder would like to receive a full proposal.

Letter of support

A letter from a partner, authority or community confirming that it backs the project and will play its part.

Logical framework (logframe)

A table linking a project’s goal, outcomes, outputs and activities to indicators, sources of evidence and assumptions.

M

Milestone

A significant point in a project that shows a stage is complete, often linked to reporting or payment.

Mitigation

An action that reduces the likelihood or impact of a risk.

Monitoring

The regular collection of information during a project to check progress against the plan.

Monitoring and evaluation (M&E)

The combined system for tracking progress and assessing results. Often extended to MEL, adding learning.

O

Objective

A specific result the project aims to achieve within its lifetime. Good objectives are SMART.

Outcome

The change that outputs cause for people or institutions, such as improved skills, behaviour or access to services.

Output

What a project directly delivers, such as people trained, facilities built or materials produced.

Overheads

See indirect costs.

P

Problem statement

The part of a proposal that describes the need the project addresses, backed by evidence. Also called statement of need.

Programme officer

The funder’s staff member who manages applications and grants in a particular area and answers applicants’ questions.

R

Request for proposals (RFP)

See call for proposals.

Restricted funding

Money that may only be spent on a specific project or purpose, as opposed to unrestricted funding the organisation can use as it decides.

S

Safeguarding

Policies and practices that protect children and vulnerable adults from harm, abuse and exploitation in a project.

SMART objectives

Objectives that are Specific, Measurable, Achievable, Relevant and Time-bound.

Stakeholder

Any person or organisation affected by, or able to influence, a project.

Sustainability

The ability of a project’s results to continue after funding ends.

T

Theory of change

An explanation, in words or a diagram, of how and why a set of activities is expected to lead to the desired change.

Frequently asked questions

Written by Gachi Foundation, a non-profit in Jharkhand, India. All proposal-writing resources.