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| 501(c)3 Letter: |
| 501(c)(3) is a just one of twenty-two different types of organizational tax exemptions granted by the IRS under section 501 of the Code. 501(c)(3) exemptions are for “charitable, educational, and religious” organizations. |
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| 990 Form: |
| The public record information return that all private foundations are required by law to submit annually to the Internal Revenue Service. |
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| Annual Report: |
| Voluntary report issued by a foundation or corporation to provide financial data and descriptions of its grantmaking activities. Annual reports vary in format from simple typewritten documents listing the year's grants to detailed publications that provide substantial information about the grantmaker's grantmaking programs. |
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| Building funds: |
| money raised for construction of buildings; may be part of an organization’s capital campaign. |
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| Capital Campaigns: |
| a campaign, usually extending over a period of years, to raise substantial funds for enduring purposes, such as building or endowment funds. |
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| Challenge Grants: |
| Grants paid only if the donee organization is able to raise additional funds from other sources. Challenge grants are often used to stimulate giving from other donors. |
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| Community Funds: |
| Organized community programs which make annual appeals to the general public for funds that are usually not retained in an endowment but are instead used for the ongoing operational support of local agencies. |
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| Continuing Support: |
| a grant that is renewed on a regular basis. |
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| Corporate Foundations: |
| Private foundations whose assets are derived primarily from the contributions of a for-profit business. While a company-sponsored foundation may maintain close ties with its parent company, it is an independent organization with its own endowment and as such is subject to the same rules and regulations as other private foundations. |
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| Deficit financing: |
| also known as debt reduction. A grant to reduce the recipient organization’s indebtedness; frequently refers to mortgage payments. |
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| Emergency funds: |
| a one-time grant to cover immediate short-term funding needs on an emergency basis. |
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| Employee matching gifts: |
| a contribution to a charitable organization by a corporate employee which is matched by a similar contribution from the employer. Many corporations support employee matching gift programs in higher education to stimulate their employees to give to the college or university of their choice. |
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| Endowment funds: |
| a bequest or gift intended to be kept permanently and invested to provide income for continued support of an organization. |
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| Equipment: |
| a grant to purchase equipment, furnishings, or other materials. |
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| Family Foundations: |
| Independent private foundations whose funds are derived from members of a single family. Family members often serve as officers or board members of family foundations and have a significant role in their grantmaking decisions. |
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| Federated Giving Programs: |
| Joint fundraising efforts usually administered by a nonprofit umbrella organization that in turn distributes the contributed funds to several nonprofit agencies. United Way and community chests or funds, the United Jewish Appeal and other religious appeals, the United Negro College Fund, and joint arts councils are examples of federated giving programs. |
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| General purposes: |
| a grant made to further the general purpose or work of an organization, rather than for a specific purpose or project; also called unrestricted grants. |
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| Grantee Financial Reports: |
| Reports detailing how grant funds were used by an organization. Many corporate grantmakers require this kind of report from grantees. A financial report generally includes a listing of all expenditures from grant funds as well as an overall organizational financial report covering revenue and expenses, assets and liabilities. |
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| Grants to individuals: |
| awards made directly by the foundation to individuals rather than to nonprofit organizations; includes aid to the needy. |
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| Guidelines: |
| Procedures set forth by a funder that grantseekers should follow when approaching a grantmaker. |
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| Independent Foundations: |
| Grantmaking organizations usually classified by the IRS as private foundations. Independent foundations may also be known as family foundations, general purpose foundations, special purpose foundations, or private non-operating foundations. |
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| Internships: |
| usually indicates funds awarded to an institution or organization to support an internship program rather than a grant to an individual. |
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| Letter of Inquiry (LOI): |
| Also known as a query letter, a LOI is a brief letter to a Foundation or Corporate Giving Program introducing the school; the project; the need; the request for funding, etc.; that is sent to the prospective donor to determine whether it would be appropriate to submit a full grant proposal. Private grant-makers often prefer that the initial contact be made by letter of inquiry. |
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| Matching funds: |
| a grant which is made to match funds provided by another donor. (See also ‘Employee matching gifts.’) |
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| Operating Foundations: |
| 501(c)(3) organizations classified by the IRS as private foundations whose primary purpose is to conduct research, social welfare, or other programs determined by its governing body or establishment charter. An operating foundation may make grants, but the sum generally is small relative to the funds used for the foundation's own programs. |
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| Payout Requirements: |
| The minimum amounts that private foundations are required to expend for charitable purposes (including grants and, within certain limits, the administrative cost of making grants). In general, a private foundation must meet or exceed an annual payout requirement of five percent of the average market value of its total assets. |
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| Principal Investigator: |
| The one individual designated by the applicant organization to direct the project or program to be supported by the grant. The principal investigator is responsible and accountable to applicant organization officials for the proper conduct of the project or program. |
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| Private Foundations: |
| Nongovernmental, nonprofit organizations with funds (usually from a single source, such as an individual, family, or corporation) and program managed by its own trustees or directors. Private foundations are established to maintain or aid social, educational, religious, or other charitable activities serving the common welfare, primarily through the making of grants. |
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| Program Officers: |
| Staff members of foundations who review grant proposals and process applications for the board of trustees. Only a small percentage of foundations have program officers. |
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| Proposal: |
| A proposal is an application for funding that contains all information necessary to describe project plans, staff capabilities, and funds requested. Formal proposals are officially approved and submitted by the MSU Foundation on behalf of the principal investigator. |
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| Report: |
| Also known as a stewardship report, this report is a type of document typically written by the principal investigator that provides an account of the program or project for which the funds were allocated and how the funds were utilized. |
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| Research: |
| usually indicates funds awarded to institutions to cover costs of investigations and clinical trials. Research grants for individuals are usually referred to as fellowships. |
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| RFP: |
| An acronym for Request for Proposal. When the government issues a new contract or grant program, it sends out RFPs to agencies that might be qualified to participate. The RFP lists project specifications and application procedures. While a few foundations occasionally use RFPs in specific fields, most prefer to consider proposals that are initiated by applicants. |
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| Seed money: |
| a grant or contribution used to start a new project or organization. Seed grants may cover salaries and other operating expenses of a new project. Also known as ‘start-up funds.’ |
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