Grant Glossary — Key Terms Every Applicant Should Know
Understanding grant terminology is essential for writing strong applications and navigating the federal funding system confidently. Reviewers, program officers, and NOFOs use precise language — and knowing what each term means helps you respond to exactly what funders are asking for.
25 terms defined below. Ready to search grants? →
A
- Appropriation
- An appropriation is the formal legislative act by which Congress authorizes federal agencies to spend a specified amount of money for a particular purpose during a specific fiscal year. Grant programs cannot distribute funds until Congress has appropriated the money. Budget changes, continuing resolutions, or funding lapses can delay or reduce the awards a program makes in any given cycle.
B
- Budget Narrative
- A budget narrative (also called a budget justification) is a written document that accompanies the itemized budget in a grant application. It explains how each cost was calculated and why it is necessary to achieve the project's objectives. A strong budget narrative provides clear formulas — for example, '2.0 FTE × $55,000 annual salary × 50% effort = $55,000' — and connects each line item to a specific activity in the project plan. Reviewers use the budget narrative to assess whether your cost estimates are reasonable and directly tied to your proposed work.
C
- CFDA Number (Catalog of Federal Domestic Assistance)
- The CFDA number is a unique five-digit identifier assigned to every federal assistance program, such as 47.041 for NSF Engineering grants or 93.243 for SAMHSA substance abuse programs. It has been replaced in practice by the Assistance Listings number on SAM.gov, but the term is still widely used. Including the CFDA/Assistance Listings number in your application helps establish which specific program authority you are applying under.
- Co-Applicant
- A co-applicant (or co-investigator in research grants) is a partner organization or individual who shares responsibility for a grant with the primary applicant. Unlike subrecipients, co-applicants are often jointly accountable for the award and may share in the funding. Many federal programs allow or require co-applicants, particularly for collaborative research or multi-site projects. All co-applicants typically must meet the same eligibility requirements as the lead applicant.
- Continuation Grant
- A continuation grant provides additional funding for a project that has already received an initial award and is performing satisfactorily. Rather than submitting a full competitive application, the recipient typically submits a progress report and non-competing renewal request. Continuation funding is not guaranteed — it depends on program appropriations, compliance with original award terms, and satisfactory progress toward stated objectives.
D
- Direct Costs
- Direct costs are expenses that can be specifically identified and attributed to a particular grant-funded project. Common direct costs include staff salaries for project personnel, supplies and equipment purchased exclusively for the project, consultant fees, and travel directly related to project activities. Direct costs are distinguished from indirect costs, which cover shared organizational overhead. Funders typically review direct costs closely to ensure they are reasonable, allowable, and allocable to the proposed work.
- Discretionary Grant
- A discretionary grant is one where the federal awarding agency has the authority to select recipients through a competitive review process, rather than distributing funds according to a formula. Most grants listed on Grants.gov are discretionary grants. The agency publishes a Notice of Funding Opportunity (NOFO), reviews applications against published criteria, and selects awardees based on merit. Award amounts and recipients vary from year to year depending on available funding and application quality.
- DUNS Number / UEI Number
- The DUNS (Data Universal Numbering System) number was a nine-digit identifier required for federal grant applications for decades. In April 2022, the federal government replaced the DUNS number with the Unique Entity Identifier (UEI), a 12-character alphanumeric code assigned through SAM.gov. All entities applying for federal grants must obtain a UEI before submitting an application. The UEI is free and can be obtained at SAM.gov during your entity registration.
E
- Eligibility Requirements
- Eligibility requirements define which types of organizations and individuals may apply for a specific grant. Common eligibility criteria include organization type (nonprofit, small business, state government, tribal nation), geographic location, revenue thresholds, prior grant history restrictions, and registration requirements such as SAM.gov active status. Failing to meet even one eligibility criterion typically results in automatic disqualification. Always verify eligibility before investing time in an application.
F
- Federal Register
- The Federal Register is the official daily journal of the U.S. federal government. It publishes proposed and final federal regulations, agency notices, presidential documents, and grant-related announcements. Many Notices of Funding Opportunity are first published in the Federal Register before appearing on Grants.gov. Subscribing to Federal Register updates in your topic area is a useful way to stay ahead of upcoming grant opportunities.
- Formula Grant
- A formula grant distributes federal funds to states, localities, or other specified recipients based on a pre-determined mathematical formula rather than a competitive review process. The formula typically incorporates factors such as population, poverty rate, or geographic size. Title I education funding and CDBG (Community Development Block Grant) funds are common examples. Recipients often have discretion in how they use formula grant funds within program guidelines.
G
- Grant Agreement
- A grant agreement (sometimes called a Notice of Award) is the legally binding document between the federal awarding agency and the recipient that establishes the terms and conditions of the award. It specifies the award amount, project period, allowable costs, reporting requirements, and compliance obligations. Recipients should read the grant agreement carefully before accepting an award, as it governs all aspects of how funds may be used and what happens if requirements are not met.
- Grants.gov
- Grants.gov is the official U.S. government website where federal agencies publish grant opportunities and, for many programs, where applicants submit their applications. It is maintained by HHS and serves as the primary portal for over 1,000 grant programs across all federal agencies. GrantLocate automatically pulls data from Grants.gov daily so you can browse available grants without navigating Grants.gov directly. Note that some agencies use their own submission portals — always check the NOFO for submission instructions.
I
- Indirect Costs (Overhead)
- Indirect costs (also called facilities and administrative costs, or F&A costs) are expenses that cannot be attributed to a single project but are necessary to support the organization's overall operations — things like building rent, utilities, HR, and accounting. Federal grants typically allow recipients to charge a percentage of direct costs as indirect costs, up to a negotiated indirect cost rate established with a federal cognizant agency. Some funders cap indirect costs (e.g., at 10% or 15%); others allow the full negotiated rate. Confirm the funder's indirect cost policy before building your budget.
L
- Letter of Intent (LOI)
- A Letter of Intent (LOI) is a brief preliminary document submitted before a full application to notify a funder of your intent to apply. Some programs require an LOI; others request it but do not require it; many don't use them at all. An LOI is typically 1-2 pages and summarizes your organization, proposed project, and requested amount. Even when optional, submitting an LOI can be beneficial because it opens a channel for communication with the program officer before you invest time in a full application.
M
N
- Needs Statement
- The needs statement (or statement of need) is the section of a grant application that establishes why the proposed project is necessary. It should document a specific, evidence-based problem using data from credible sources — government reports, peer-reviewed research, community needs assessments. A strong needs statement connects the documented problem directly to the funder's stated priorities and demonstrates that the applicant has a unique capacity to address it. Reviewers often allocate significant scoring weight to this section.
- Notice of Funding Opportunity (NOFO)
- The Notice of Funding Opportunity (NOFO) — also called a Funding Opportunity Announcement (FOA) or solicitation — is the official document that describes a grant competition. It includes the program's purpose, eligibility requirements, funding amounts, application requirements, evaluation criteria and their point weights, submission instructions, and deadline. Reading the NOFO thoroughly before writing a single word of your application is the single most important preparation step. Every successful application is written to match the NOFO's stated priorities and evaluation criteria.
P
- Program Officer
- A program officer (or program manager) is the federal agency staff member responsible for administering a specific grant program. They manage the application process, answer pre-submission questions from prospective applicants, coordinate the peer review process, and monitor active awards for compliance. Most NOFOs include program officer contact information. It is generally acceptable — and often advantageous — to contact the program officer before submitting an application to confirm eligibility or clarify requirements.
R
- Request for Proposals (RFP)
- A Request for Proposals (RFP) is a formal solicitation document used by government agencies and foundations to invite competitive applications for funding or procurement. In the federal grants context, RFP is often used interchangeably with NOFO or FOA, though technically an RFP may lean more toward procurement (contracting) than grant-making. When you see an RFP from a federal agency on Grants.gov or SAM.gov, review the document carefully to determine whether it is a grant, cooperative agreement, or contract — each has different terms and compliance requirements.
S
- SAM.gov Registration
- SAM.gov (System for Award Management) is the official U.S. government system where entities must register before they can receive federal grants or contracts. Registration requires a Unique Entity Identifier (UEI), an EIN or TIN, and verified organizational information. Active SAM.gov registration is a prerequisite for nearly all federal grant applications. Registration is free and must be renewed annually. Initial registration can take 1–3 weeks, so begin this process well before your application deadline.
- SBIR (Small Business Innovation Research)
- The Small Business Innovation Research (SBIR) program is a competitive federal grant program that funds research and development by small businesses. Administered across 11 federal agencies, SBIR distributes over $4 billion annually. Phase I awards ($150,000–$275,000) fund feasibility studies; Phase II awards ($750,000–$1.5M) fund full R&D; Phase III commercializes the technology. Eligible businesses must be U.S.-based, for-profit, majority U.S.-owned, and have fewer than 500 employees. See our SBIR vs. STTR comparison →
- STTR (Small Business Technology Transfer)
- The Small Business Technology Transfer (STTR) program is structurally similar to SBIR but requires a formal partnership with a U.S. research institution (a university, federally funded R&D center, or nonprofit research organization). At least 40% of work must be performed by the small business and at least 30% by the research partner. Five agencies participate: DOD, DOE, HHS, NASA, and NSF. STTR is worth considering when your technology originated in a university lab or when the principal investigator is employed by a research institution. See our SBIR vs. STTR comparison →
- Scope of Work
- The scope of work (SOW) is the section of a grant application or award document that describes in detail what activities will be carried out, by whom, on what timeline, and with what expected outputs. A well-written scope of work is specific, measurable, and directly tied to the project's goals and budget. It serves as the roadmap against which a program officer evaluates progress reports and determines compliance with award terms. Vague or overly broad scopes of work are a common reason for lower reviewer scores.
- Subaward / Subgrant
- A subaward (or subgrant) is an award provided by a pass-through entity to a subrecipient to carry out part of a federal grant-funded project. For example, a university that receives a federal grant might issue a subaward to a community organization to conduct outreach activities. Subrecipients are subject to the same federal compliance requirements as the primary recipient, including audit requirements, reporting obligations, and cost principles. Pass-through entities are responsible for monitoring their subrecipients' performance and financial management.
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