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.

Don't let jargon get on top of you!'

Don't let jargon get on top of you!

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
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For more information or to get support and advice contact the Rainbow Partnership.