Common terms used in nonprofit grantmaking, foundation research, and IRS 990 filings.
A section of the IRS tax code that designates an organization as tax-exempt. Most nonprofits and private foundations are 501(c)(3) organizations. Donations to these organizations are generally tax-deductible.
The annual IRS tax return filed by private foundations. Form 990-PF includes detailed information about grants awarded, officers and trustees, financial data, and application procedures. FunderKit analyzes these filings to build foundation profiles.
The date by which a grant application must be submitted. Some foundations have rolling deadlines, while others accept applications only during specific periods.
The total market value of investments and assets held by a foundation. Private foundations are generally required to distribute at least 5% of their assets annually.
A measure of the average annual growth rate of giving over a period. FunderKit uses CAGR to identify whether a foundation's giving is growing, stable, or declining.
A public charity that pools charitable funds from many donors to support a specific geographic area. Unlike private foundations, community foundations receive funding from the general public.
A unique nine-digit number assigned by the IRS to identify organizations for tax purposes. Also called a Federal Tax ID. Format: XX-XXXXXXX.
A pool of invested assets from which a foundation draws income to fund grants. The principal is typically preserved while investment returns fund annual giving.
A private foundation whose funds come from a single family. Family members often serve as officers and trustees and are involved in grantmaking decisions.
The last day of a foundation's accounting year. Many foundations use a calendar year (December 31), but some use other dates. Tax filings cover the fiscal year.
A grant that supports an organization's overall mission and operations rather than a specific project. Also called unrestricted funding.
A financial award given by a foundation to a nonprofit, individual, or other entity. Unlike a loan, a grant does not need to be repaid.
An organization or individual that receives a grant from a foundation.
An organization that awards grants. This includes private foundations, community foundations, corporate foundations, and government agencies.
The IRS Tax Exempt Organization Search system. TEOS provides public access to information about tax-exempt organizations, including downloadable 990 returns in XML format.
A brief letter sent to a foundation before submitting a full proposal. The LOI summarizes the project and asks whether the foundation is interested in receiving a full application.
A grant that requires the recipient to raise additional funds from other sources. For example, a 1:1 match means the grantee must raise $1 for every $1 the foundation provides.
National Taxonomy of Exempt Entities — a classification system used by the IRS to categorize nonprofit organizations by purpose. The major group letter (A-Z) indicates the broad category (e.g., B = Education, E = Health Care, P = Human Services).
The percentage of a foundation's assets distributed as grants each year. Private foundations are required to distribute at least 5% of their net investment assets annually.
A nonprofit organization typically funded by a single source (individual, family, or corporation) that makes grants to other organizations. Subject to stricter IRS regulations than public charities.
A foundation staff member responsible for evaluating grant proposals, managing grantee relationships, and making funding recommendations.
A tax-exempt organization that receives a substantial portion of its funding from the general public or government. Subject to less restrictive rules than private foundations.
A formal announcement by a foundation inviting organizations to submit grant proposals for a specific initiative or program area.
A grant application submitted without a specific invitation from the foundation. Some foundations accept unsolicited proposals, while others only fund through invited applications or RFPs.
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