How to: Understand funding jargon
When it comes to applying for funding, the language used can sometimes be a barrier to understanding what information funders want and what voluntary and community groups can use the money for.
Accountable body - where groups collaborate on funding, this is the organisation agreed to represent a partnership to funders.
Added value - benefits that the project achieves that are not listed in the funding criteria.
Audit/ auditable - an external check of project spending, systems and accountability.
BASIS - a funding programme operated by the Big Lottery Fund. This allows voluntary and community organisations to access high quality support to develop infrastructure and help them to become more effective.
Budget - financial planning for the life of the project funding.
Business Plan - A written document relating to a whole organisation or a particular project setting out the overall aims and resources required to achieve them.
Capacity Building - measures to support the building up of skills and knowledge to enable a community or organisation to perform at its best ability.
Capital spending - money allocated to purchasing equipment/ machinery/ property.
Charitable aims - where an organisations’ purposes are for public benefit but they do not have charitable status.
Charitable status - achieved where a body established in UK law for charitable purposes only. Those purposes must be for the public benefit.
Cocktail funding - a mixture of funding sources.
Compact - the agreement between government and the voluntary and community sector to improve the way they work together for mutual advantage and community gain.
Continuation funding - funding for a project when initial funding ceases.
Contributions in kind - a contribution from an applicant into a project that is in a form other than cash. This could include: staff or volunteer time; or the provision of services or equipment.
Core costs - the central costs of running an organisation, group or project, such as personnel and utilities.
Criteria - a set standard laid down by funders to explain the types of projects they will fund.
Displacement - the extent to which a project may have a negative effect on other companies, sectors or areas.
Evaluation - final report measuring the impact and effectiveness of a project.
Exit Strategy - a plan for when funding for a project comes to an end, in order that planned changes are built upon and maintained during subsequent years.
Expression of interest - an invitation to submit a proposal for access to specific funding.
Financial reporting (quarterly) - a report on the financial health of a project.
Frontline organisation - voluntary or community organisation working directly with the public or targeted groups or communities.
Full Cost Recovery - this is how organisations and their funders ensure that the price of contracts and grants reflects the full costs of delivery, including overhead costs such as building use.
Governance - systems and processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organisation or group.
Grassroots - on the ground delivering services to real people.
Incorporation - to become a legal corporation.
Letter of introduction - an unsolicited introduction to a Trust/ or funder.
Leverage - a small amount of money to attract larger funds.
Lifelong Learning - education and training undertaken by individuals throughout their lives, allowing them to continually update their knowledge and skills.
Limited by guarantee - bound by Business Code of Conduct.
Match funding - partial funding to match another funder.
Milestones - pre-determined and regular activities/ events to mark project progress.
Monitoring - an on-going recording of activity about your project, usually with the intention of reporting back to funders.
On track - spending as per budget.
Outcome(s) - things that show how far a project or group has achieved against its’ aims and how it has affected change.
Outputs - things that are produced by a project or group – such as a resource pack or event – and are measured in the volume of items that are produced, distributed or run.
Over-spend - spending more than budgeted.
Performance indicators - evidence of performance / improvement measured against a specific goal.
PFI - Private Finance Initiative. These deliver infrastructure on behalf of the private sector and involve Private-Public sector partnerships.
Pump Priming - where initial funds are used to set up a new activity or group.
Retrospective - cannot pay after the event.
Revenue - on going or repeat costs such as salaries, rent or travel.
Slippage - a contingency fund or under spend against an estimated budget.
SMEs - small and medium size enterprises.
Spending profile (to date) - a snapshot of spending at a given time.
Strategic - an umbrella view / well planned / forward thinking.
Sustainability - method to keep a project going after funding runs out or ability of project to address environmental targets.
Under-spend – spending less than budgeted.
Unincorporated - governed by constitution without legal corporation.
Value for money - your project delivering what it aims to in a cost effective manner.
How to: Understand funding jargon
Click to download a .pdf copy of this information.
For more information or to get support and advice contact the Rainbow Partnership.