A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

501(c)(3)	Section of the Internal Revenue Service Code that designates an organization as charitable, tax-exempt, and nonprofit. Organizations qualifying under the code include religious, educational, charitable, amateur athletic, scientific or literary groups, organizations testing for public safety, or organizations involved in prevention of cruelty to children or animals.
509(a)	Section of the Internal Revenue Service Code that defines public charities (as opposed to private foundations). Note that 501(c)(3) and 509(a) are not mutually exclusive terms; a 501(c)(3) organization may also have a 509(a) designation to define the agency as a public charity.
990-PF	IRS form filed annually by all private foundations and used by the IRS to determine if a private foundation is complying with the Internal Revenue Code and Tax Reform Acts. The 990-PF form lists foundation assets, receipts, expenditures, compensation of officers, and grants made during the year. (The letters "PF" stand for "Private Foundation.")
community foundation	A type of foundation formed by broad-based community support from multiple sources: trusts, endowments, individual contributions, or private foundation grants. A community foundation usually makes grants only within a specified geographic area and is governed by a board representing the community that it serves.
corporate foundation	A type of foundation that receives its income from the profit-making company whose name it bears but is legally an independent entity. Corporations may fund these foundations with a donation of permanent assets or give periodic contributions based on a percentage of the company's profits. (Also known as a company-sponsored foundation.)
disqualified person	A broad category including contributors to a private foundation, its managers, and certain public officials. Family members of disqualified persons are also disqualified, as are corporations and partnerships in which disqualified persons hold significant interests. Financial transactions between disqualified persons and foundations are in violation of self-dealing rules, except as specified by law.
donee	The individual or organization that receives a grant.
donor	The individual or organization that makes a grant.
endowment	A bequest or gift that is intended to be kept permanently and invested to create income for an organization or foundation.
expenditure responsibility grants	Grants from a private foundation to an individual or organization that is not classified by the IRS as tax exempt under Section 501 (c)(3) and as a public charity according to Sections 509(a) and 170(b). The donor is required by law to ensure that the funds are spent for charitable purposes and not for private gain or political activities. Special reports on the organization or individual receiving the grant must be filed with the IRS, and the organizations must be listed on the foundation's 990-PF. Because such grants entail additional work and responsibility, many foundations will not make grants to organizations that are not tax-exempt.
family foundation	A private foundation whose funds are derived from members of a single family. Generally family members serve as officers or board members of the foundation and play an influential role in grantmaking decisions.
foundation	See private foundation.
funding cycle	A chronological pattern of proposal review, decision making and applicant notification. Some donor organizations make grants at set intervals (quarterly, semi-annually, etc.) while others operate under a continuous cycle.
grant	The award of funds to an organization or individual to undertake charitable or tax-exempt activities.
grant monitoring	The ongoing assessment of the progress of the activities funded by a donor, with the goal of determining if the terms and conditions of the grant are being met and if the objectives of the grant are likely to be achieved.
grantee	See donee.
grantor	See donor.
guidelines	A statement of a donor or donee's goals, priorities, criteria, and procedures.
independent foundation	A private foundation for which members of the board of directors are not related to the original donor(s).
in-kind contribution	A donation of goods or services rather than cash.
limited life	Length of life of a foundation that is limited by the donor(s). The charter may require that the assets be distributed after a certain number of years.
matching grant	A grant or gift made with the specification that the amount donated must be matched on a one-for-one basis or some other prescribed formula.
operating foundation	A private foundation that primarily conducts programs of its own, expending its funds directly for the conduct of its own charitable activities rather than making grants to others. Qualified operating foundations must follow specific rules in addition to the applicable private foundation rules.
perpetual life	Length of life of a foundation that is deemed perpetual by the donor(s). The donor may wish to establish the foundation in perpetuity to enable the family tradition to continue after his or her death.
private foundation	A nongovernmental, nonprofit organization with funds (usually from a single source, such as an individual, family, or corporation) and program managed by its own trustees or directors. The funds are program are established to maintain or aid social educational, religious, or other charitable activities serving the common welfare, primarily through the making of grants. "Private foundation" also means an organization that is tax-exempt under Code Section 501(c)(3) and is classified by the IRS as a private foundation as defined in the code.
public charities	Charitable agencies that qualify as public charities either through the nature of their work (church, school, or hospital) or because they receive substantial support from the general public [see the "support" tests of Section 509(a)(2) or 170(b)(1)(A)(vi)]. Most public charities have obtained an IRS letter stating that they are "not a private foundation."
restricted funds	Assets or income that is restricted in its use, its eligible recipients, or its distribution procedures.
seed money	A grant of contribution used to start a new project or organization.
set-asides	Funds set aside for future payments. If a foundation demonstrates successfully to the IRS in advance that the funds will in fact be paid within 60 months and that the project can better be accomplished by such a set-aside than by an immediate grant, the full appropriation may count in the first year.
supporting organization	An organization created primarily to fund the activities of one or more existing public charities. There must be a close relationship between the supporting organization and one or more such public charities.
tipping	When a grant is made that is large enough to significantly alter the grantee's funding base and cause it to fail the public support test. This would result in the grantee's conversion to a private foundation and would be detrimental to both grantor and grantee. It would also require expenditure responsibility on the part of the grantor.
trust	A legal device used to set aside raised money or property of one person for the benefit of one or more persons or organizations.
unrestricted funds	Assets or income that is unrestricted in its use, its eligible recipients, or its distributions procedures. A grant of unrestricted funds does not specifically stipulate how the money is to be spent by the grantee.