Common Grant Writing Acronyms and Definitions

Budget Narrative or Budget Explanation
The budget narrative provides a detailed description and support for items in the proposal budget. Budget narratives typically include calculations for staff hours and costs, lists of materials & supplies with costs, description of travel with cost details, explanation of other direct costs, and indirect cost rates and calculations. Some require a description of what personnel will do on the project.

FFY: Federal Fiscal Year
The accounting period for the federal government which begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2019 is the budget for October 1, 2018 through September 30, 2019.

Indirect Rates
Grant-making organizations understand that when they fund a proposal they are not reimbursing the recipient for all related costs because the grantee has to absorb such costs as heating, lighting, and salaries. That's why some agencies allow a proposal to include indirect costs. These costs cannot be attributed to a single project, but support multiple projects.

In-Kind Funds
Sometimes grants require matching funds. One way an organization can increase matching funds is to list the value of services or other support as in-kind funds. Volunteer services, space, transportation, and donated goods you distribute are common examples of in-kind matches.

Logic Model
A logic model is sometime requested when applying for a grant. Simply put, this document shows the relationships among your project's sources, actions, outputs, and expected outcomes. Logic models show, in table form, the expectations you have for the project you wish to be funded. Logic models can be useful for project planning and making you aware of any project gaps.

LOI: Letter of Inquiry
A letter of inquiry is a brief yet concise presentation of the program or problem that you would like funded as well as your organization's qualifications and background. A letter of inquiry can often be the most important step in securing grant funds. According to the Foundation Center, many foundations prefer funding requests come first in the form of a LOI instead of a full proposal. Foundations typically use letters of inquiry to see if there is interest in the project before a full proposal is submitted.

LOI: Letter of Intent
A brief letter outlining your organization's intent to submit a full proposal for an upcoming published deadline. A letter of intent is used by grant makers, typically government agencies, to help them plan their review process. A letter of intent may or may not be binding in the process.

Matching Funds
In some cases, the organization receiving the grant needs to provide a certain amount of its own money, or collaborators' funds, toward the effort. Programs vary a lot in the amounts and types of matching funds required; many require no matching funds at all. But if a match is required, failure to provide it will likely result in the rejection of the application.

NOFA: Notice of Funding Availability
State and federal governments as well as private foundations and organizations issue a NOFA when funding becomes available for programs. Notices of Funding Availability are more common from the government since government spending often has to be approved at various times for use. Normally, a NOFA lists the application deadlines, eligibility requirements, and places where you can get more help in applying for program dollars.

PI: Principal Investigator
The individual(s) judged by the applicant organization to have the appropriate level of authority and responsibility to direct the project or program supported by the grant.

Proposal Budget
While a budget does not need to be defined, we do get a lot of questions about budgets, so we included it in this list. Make sure your budget provides all information required in the proposal guidelines.

RFA: Request for Applications
An RFA is essentially the same as a RFP. Government agencies and other grant-making organizations sometimes release requests for applications, specifying what types of programs are eligible for funding.

RFP: Request for Proposal
The Nonprofit Good Practice Guide's Glossary defines an RFP as "An invitation from a funder to submit applications on a specified topic with specified purposes." According to the Foundation Center, a relatively small number of grant-making organizations use RFPs although they are becoming popular for promoting new programs.

Unsolicited Grants
Some foundations may choose to not accept any unsolicited grants, meaning they contact the entities they would like to submit applications for grant funding. If you are not invited, you can't apply. Foundations do this for several reasons including the desire to fund groups only in a certain area; the need for less paperwork; and the desire to fund very specific causes.