Grant glossary

Plain-language definitions of the terms you will run into when managing and reporting a grant.

Allowable expenses

Costs a funder permits you to pay for with grant money. What is allowable is defined by your award terms; anything outside them is unallowable and should not be charged to the grant.

Direct costs

Expenses tied directly to your funded work, such as travel, materials, registration, or program activities. They are the bulk of most grant spending.

Indirect costs

Overhead that supports your work but is not tied to one activity, such as administration. Some grants allow a percentage for indirect costs; many individual awards do not.

Restricted funds

Money that may only be spent on specific purposes set by the funder. Most grant funds are restricted to the goals in your award.

Unrestricted funds

Money you may spend at your discretion within the spirit of the award. Living stipends are often closer to unrestricted than project grants.

Budget-to-actual

A comparison of what you planned to spend (budget) against what you actually spent (actual), by category. It is the core of expense tracking and funder reporting.

Reimbursement grant

A grant where you spend your own money first and the funder reimburses you after you submit documentation. Keeping receipts is essential.

Grant clawback

When a funder reclaims money that was not spent according to the award terms, or unspent funds at the end of the grant. Good records reduce this risk.

No-cost extension

Additional time to finish spending your grant without additional money. You request it from the funder before the grant period ends.

Fellowship stipend

A regular payment to a fellow for living expenses so they can focus on their work. A stipend is usually personal and not meant to fund a venture or organization.