Budget development requires use of a specialized vocabulary. Knowing what that language means is criticalfor writing proposals that win grants.
The 17 key terms entries presented here span Salaries to Zero Funding.
Salaries | Supplies |
Seed Money | Sustainability |
Selection Criteria | Travel |
Sequestration | Unallowable Costs |
Single Point of Contact (SPOC) | Uniform Application Forms |
Soft Funds | Unrestricted Funds |
Standard Form | Wages |
Sub-Grantee | Zero Funding |
Supplanting |
SALARIES: The compensation of professional and technical personnel—who are typically limited only to those holding a post-secondary degree—before the addition of fringe benefits.
SEED MONEY: A grant award intended to help start a new project or initiative or to launch a new non-profit organization. Also may be called a Start-Up Grant.
SELECTION CRITERIA: The formal set of factors a grant maker uses in scoring and ranking a set of competitive proposals to determine which ones it will select for funding. Also may be called Criteria or Review Criteria.
SEQUESTRATION: A mandatory spending cut in the federal budget, such as through a repeal of legislation authorizing a grant program, a reduction of the funding appropriated for a grant program, or an appropriation of no funding for a grant program.
SINGLE POINT OF CONTACT (SPOC): The person in state government whom an applicant must inform when it is applying for a federal grant. The federal Office of Management and the Budget maintains a list of single points of contact. Some states have one; others do not.
SOFT FUNDS: A non-technical term for the funding of staff positions or other resources using grant funds rather than other means (e.g., revenues from tax levies); it reflects the premise that such assets are not as secure or stable, over the long term, as those funded using other means (e.g., annual tax levies). Also see: Hard Funds
STANDARD FORM: A blank template that an applicant must complete and submit—as each specific program requires—with its application for a federal grant. The federal General Services Administration provides a comprehensive collection of standard forms. Example: SF424. Also see: Uniform Application Forms
SUB-GRANTEE: A lower-tier recipient (e.g., a county agency) of grant funds from a higher-tier recipient of those funds (e.g., a state agency) and not directly from the grant maker; also called a Sub-Recipient. Also see: Grantee
SUPPLANTING: A deliberate shifting or displacement in the source of funds (e.g., state or local) used to afford a given resource (e.g., personnel) in an organization because of the availability of federal grant funds after a new grant award. One caveat in many government grant programs is “Do not supplant.”
SUPPLIES: A cost category for consumable resources such as paper, pens, pencils, postage, folders, files, binders, paperclips, toner, blank data storage media, and similar office products. Definitions and thresholds for value of the discrete items vary widely across grant programs and funding agencies. Also see: Materials
SUSTAINABILITY: A measure of the perceived likelihood that an applicant (and its partners, if any) will be able to obtain and use funding (and other resources) from itself and/or other sources to continue its proposed project or initiative after its initial grant funding ends. Grant makers of all types often favor proposals that exhibit a high potential for sustainability.
TRAVEL: A cost category for costs associated with going place-to-place, including fares (e.g., air, bus, train, taxi, or shuttle), vehicle rentals or leases, mileage, tolls, meals, tips, and lodging. Every item assigned to the Travel category must be clearly defined and thoroughly justified.
UNALLOWABLE COSTS: The cost categories or discrete line items that a grant maker forbids or discourages an applicant to include as part of a proposed budget. Also see: Allowable Costs
UNIFORM APPLICATION FORMS: The standard forms that applicants must complete and submit with applications for federal grants; several of them require specific or detailed budget information. Example: SF424. In federal programs, these are associated with specific notices of grant opportunities posted on http://www.grants.gov.
UNRESTRICTED FUNDS: Funds from a grant or any other source that an organization may use for any legal purpose, such as general funds or operating funds. Also see: Restricted Funds
WAGES: The hourly compensation of non-professional personnel—typically all of those who do not hold a post-secondary degree—before the addition of fringe benefits, if any.
ZERO FUNDING: The termination of a grant program authorized by law or regulation by ending all appropriations for funding it. Also see: Declining Funding, Level Funding
This post ends a seven-part series Glossary for Budget Development. It supplements a five-part series on Proposal Development and a three-part series on Evaluation Plans.