Glossary of Terms
501(c)(3) - Nonprofit organizations to which contributions are tax deductible.
Accountability - The responsibility of a foundation/organization to publicly disclose information on their activities, particularly justification for financial activities and the decisions surrounding them.
Annual Report - A report published by a foundation or corporation describing its mission, leadership, programs, services, activities and accomplishments.
Assets - The amount of capital or principal - money, stocks, bonds, real estate, or other resources - controlled by a foundation. Generally, the resulting income from the investment of assets provides the funds used to make grants.
Capacity - (as in 'to build capacity') refers to increasing on-going skills or resources in a community or organization that will increase their ability to solve problems, create and sustain services and programs, and generate resources and support.
Capacity Building - A term to describe building the infrastructure of an organization so that it is positioned for growth. Capacity building among the nonprofit sector often refers to a range of areas including governance, strategic planning, technology, fund development, etc.
Discretionary funds - Grant funds distributed at the discretion of one or more trustees or staff, which usually do not require prior approval by the full board of directors.
Evaluation - The examination of quantitative and qualitative data in order to learn, identity “what works” to reduce poverty, measure impact and improve effectiveness.
Family - Includes individuals and couples, as well as mothers, fathers, grandparents or other caregivers of children working to build a better life for themselves, their children, their community and the next generation.
Fund - An entity established for the purpose of accounting for resources used for specific activities or objectives in accordance with special regulations, restrictions, or limitations. Community foundation assets are held in many named component funds established by donors or the foundation for specific or unrestricted purposes.
Generational Poverty – Living in poverty for two generations or longer.
Grant - An award of funds to an organization to undertake charitable activities.
Grant Monitoring - Continuing evaluation of the progress of programs to determine if the terms and conditions of the grant are being met and if the objectives of the grant are being achieved.
Grantee - The recipient of a grant. (Also known as the grant recipient.)
Leverage - Used in grantmaking as an initial investment by a funder to an organization in order for that organization to attract and raise additional funds.
Matching Grant - A grant made with the provision that the amount donated must be matched by other donations by an established formula, such as 1:1.
Mission Audit - Process undertaken to benchmark the ways in which the mission and core values are integrated throughout the organization. The Foundation annual mission audit examines eight key areas: mission effectiveness, Catholic identity, quality, diversity, Catholic Social Teaching, community outreach, employee issues and advocacy.
Nonprofit organization - Under the Income Tax Act, a nonprofit organization is an association, club or society operating exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit. It is not a charity.
Nun – A female ascetic who chooses to voluntarily leave the world and live her life in prayer and contemplation. Also called Sister.
In general practice, the terms “nuns,” “Sisters” and “women religious” are used interchangeably. The difference is nuns profess perpetual solemn vows of poverty, chastity and obedience. Nuns renounce their patrimony and ownership of all possessions. Additionally, “nuns” typically live in canonical cloisters engaging in ministries of contemplation.
Operating Foundation - An operating foundation is a private foundation that uses its resources to conduct research or provide a direct service. Often this type of foundation engages in fundraising as a means of generating the revenue it needs to make grants
Out of Poverty - Having the necessary resources (e.g. spiritual, physical, material, etc.) to grow and fully develop God-given potential and gifts.
Philanthropy - The concept of voluntary giving by an individual or group to promote the common good. It also commonly refers to grants of money given by foundations to nonprofit organizations. Philanthropy addresses contributions by individuals or groups to other organizations that in turn work to alleviate the causes of poverty
Philanthropy is defined in different ways. The origin of the word philanthropy is Greek and means love for mankind. Today, philanthropy includes the concept of voluntary giving by an individual or group to promote the common good. Philanthropy also commonly refers to grants of money given by foundations to nonprofit organizations. Philanthropy addresses the contribution of an individual or group to other organizations that in turn work for the causes of poverty or social problems-improving the quality of life for all citizens. Philanthropic giving supports a variety of activities, including research, health, education, arts and culture, as well as alleviating poverty.
Pre-Application - A streamlined application submitted by potential grantees prior to a request by the Foundation to submit a full application for review.
Private Foundation - A 501(c)(3) organization that is originally funded from one source, that derives revenue from its earnings on investments and that makes grants to other charitable organizations as opposed to administering its own programs. Also see Operating Foundation.
Program - Term used to describe a discrete group of focused activities conducted by a charity to achieve a particular result. A homeless shelter, for example, might operate a job training program to assist its clients in becoming financially independent.
Public Charity - A nonprofit organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that receives its financial support from a broad segment of the general public. Religious, educational and medical institutions are deemed to be public charities. Other organizations exempt under Section 501(c)(3) must pass a public support test (see Public Support Test) to be considered public charities, or must be formed to benefit an organization that is a public charity (see Supporting Organizations). Charitable organizations that are not public charities are private foundations and are subject to more stringent regulatory and reporting requirements (see Private Foundations).
Research - A systematic investigation of examining information available on an issue of concern (e.g. poverty) to ultimately establish facts, further understanding and advance knowledge. Effective research processes include listening to varying stakeholders. Research is often used as a basis for designing or revising theory or creating a plan for future action and strategic decision making.
Sister – A female ascetic who chooses to voluntarily leave the world and live her life in prayer and contemplation. Also called nun.
In general practice, the terms “nuns,” “Sisters” and “women religious” are used interchangeably. The difference is Sisters profess these same vows as perpetual simple vows. Sisters may renounce their patrimony and ownership of all possessions, and often work in social ministries in the outside world. These roles are non absolute as “Sisters” may move from one ministerial role to another over a lifetime.
Site Visit - An in-person visit by a grantmaker to a charity to meet the agency’s key staff, program principals, and clients. Site visits typically occur during the process of evaluating a request for funding, but may also occur after a grant has been awarded to assess a program’s progress.
Strategic Planning - The process of establishing long-term goals with intermediate action steps within the context of the community served in order to ultimately achieve the mission and vision of the organization.
Sustainability - The ability to meet the needs of today's people and environment without compromising that of subsequent generations. When a program seeks to create sustainability, it aims to create an environment that can renew itself without damage to future stakeholders.
Technical Assistance - Operational or management assistance given to a nonprofit organization. It can include fundraising assistance, budgeting and financial planning, program planning, legal advice, marketing and other aids to management. Assistance may be offered directly by a foundation or corporate staff member or in the form of a grant to pay for the services of an outside consultant.
Women Religious – A term that often serves as an umbrella designation to include “Sisters” and “nuns.” In general practice, the terms “nuns,” “Sisters” and “women religious” are used interchangeably.