Different Types of Funding

When researching potential funders you will likely see interesting terms for the various categories of support they like to give. It is important to understand what the jargon means so that you are not asking an organization for an in-kind gift when you really want to ask for funding for an endowment fund. You also want to make sure you are not asking an organization for seed money that only gives to building renovations.

I can imagine your heart beating faster and your palms starting to sweat at the thought of these bizzare terms. Don't worry, you will probably catch on quickly, well at least more quickly than say... learning Greek.

Some of the more common terms include the most sought after and most elusive type of funding-General Operating Support. This will pay for pretty much anything you want in your organization. It is typically granted for general rather than specific purposes, and is least likely to be given by funders because they like to give to specific projects that will have specific results.

Building/renovation money is used for construction or renovation of buildings. These funds may be part of a Capital Campaign, which typically takes place over a longer period of time and typically is supported by a multitude of organizations and people for large causes-such as a new science building at a university.

An Endowment is typically a large gift or several small to mid size gifts that are invested to provide income for ongoing support of a particular program or other organizational expenses. Ideally, organizations grow their endowment fund (s) so that a portion of their expenses can be paid through the earned interest while the principal stays in the fund.

Seed Money is used to start a new organization or new program within an established non-profit. Ongoing or Continued Support are pretty much what they sound like-grants to help maintain the work of an established organization or particular project.

Finally, funders understand the importance of organizations exploring what/how their programs are doing and sometimes offer Program Evaluation grants to measure the effectiveness of a program.

There now...you don't have to say that grant lingo is "All Greek to me."