Grant Glossary
Articles of Incorporation: a document, filed with the Ohio Secretary of State, by a corporation's founders, describing the purpose, place of business, and other details of a corporation. Also known as a "charter".
Arts or cultural heritage: defined in the Ohio Revised Code Chapter 3381 (CAC's enabling law) as including, but not limited to, literature, theater, music, dance, ballet, painting, sculpture, photography, motion pictures, architecture, archaeology, history, natural history, or the natural sciences.
Arts or cultural organization: defined in the Ohio Revised Code, Chapter 3381, as "any corporation, organization, association or institution that provides programs or activities in areas directly concerned with the arts and cultural heritage; and is not for profit and whose net earnings may not lawfully inure to the benefit of any private shareholder, member or individual"
Authorizing Official: The person with authority to commit funds on behalf of the organization, in most cases the Executive Director or Board Officer.
Beginning Operating Balance: also known as "ending operating balance." The term refers to funds remaining in the budget for operating income and expenses at the end of an organization's fiscal year, after all revenues, expenditures and transfers have been calculated.
Board of Directors or Board of Trustees (legally constituted): governing body of a nonprofit or for-profit corporation; the board has specific legal and ethical responsibilities to the organization
Cash: cash in hand (checking and/or savings accounts) that will be drawn out and spent for project/operating expenses in the given fiscal year.
Category of organizational scale: enables organizations to compete and be judged in a category with other similarly sized organizations relevant to financial resources. Developed by computing the average of all applicant organizations' annual operating budgets, then applying a standard deviation model to determine how the budgets of all applying organizations cluster into similar financial-based categories.
Certificate of Good Standing: business entities use certificates of good standing to prove they are incorporated and authorized to do business in Ohio. The good standing status signifies an entity is current with the filing requirements of the secretary of state's office, as well as being current with the entity's corporate franchise taxes. This certificate is available from the Ohio Secretary of State's office.
Consultant: an individual contracted by the organization for a specific period of time to provide duties and services not filled by staff/personnel.
Contracted Services Revenue: Revenue related to the project, derived from fees earned through sale of services (other than this grant request) by businesses, corporations, and corporate foundations, that are related to the project.
Corporate sponsorship: financial support of a project by a corporation in exchange for public recognition and other benefits.
Employers Identification Number: Nine digit number assigned by the IRS when granting 501(c)(3) not-for-profit status.
Ending Operating Balance: see "Beginning Operating Balance" above.
Financial Compilation: is the preparation of financial statements based on information provided by the entity's management to a CPA. Compilations are created by a CPA when limited in-house capability to create financial statements exists. CPA's creating compilations are not required to corroborate the information provided by management for compilations. In addition, an accountant is not obligated to obtain an understanding of the organization's checks and balances designed to prevent and detect errors or fraud. An accountant performing a compilation is required to obtain additional or revised information if he or she becomes aware that information supplied by management is inaccurate or incomplete. For purposes of CAC's General Operating Support grant eligibility requirements, a financial compilation is NOT acceptable.
Independent Contractor: a self-employed individual who performs a service for an employer under an express or implied agreement and who is not subject to the employer's control, or right to control, regarding the method and means in which the service is performed. This person receives an IRS Form 1099 for tax purposes at the end of the year. For purposes of CAC grants, Independent Contractors are not considered "staff". (See definition)
Independently certified reviewed financial statements: requires that a CPA perform inquiry and analytical procedures. This would include having knowledge of the client's industry and applicable accounting principles, having a clear understanding with the client as to the services to be provided, and reading the financial statements to determine whether there are any obvious departures from generally accepted accounting principles. Upon completion, a report is issued stating that a review has been performed in accordance with AICPA professional standards, that a review is less in scope than an audit, and that the CPA did not become aware of any material modifications that should be made in order for the statements to be in conformity with generally accepted accounting principles, or if applicable, another comprehensive basis of accounting. This is known as the expression of "limited assurance." For purposes of CAC's General Operating Support eligibility requirements, an independently certified financial review is acceptable ONLY for organizations with annual operating budgets under $500,000.
Independently certified audited financial statements: are the products of a CPA's highest level of assurance services. In an audit, the CPA performs all of the steps contained within compiled or reviewed statements, but also performs verification and substantiation procedures. These verification and substantiation procedures may include direct correspondence with creditors or debtors to verify details of amounts owed, physical inspection of inventories or investment securities, inspection of minutes and contracts, and other similar steps. Also, the CPA gains a knowledge and understanding of the entity's internal control structure. When the audit is completed, the CPA's standard audit report states that an audit was performed in accordance with generally accepted auditing standards, and expresses an opinion that the financial statements fairly present the entity's financial position and results of operations. This is known as the expression of "positive assurance." For purposes of CAC's General Operating Support eligibility requirements, an independently certified financial audit is preferable and mandatory for all organizations with annual operating budgets over $500,000.
In-kind contribution or In-kind support: the values of any contributions, related to the project, of personnel, fees and services, rent, travel, marketing, acquisitions, materials, or other operating that are provided to "Applicant" by volunteers or outside parties at no cash cost to "Applicant." The basis for the valuation of personal services, material, equipment, building, and land must be documented. This includes all such goods and services provided the grantee by a third party in lieu of a cash contribution.
Internal Revenue Service Form 990: annual tax return filed by designated nonprofit organizations exempt from income tax. For purposes of CAC's General Operating Support grant eligibility requirements, an IRS Form 990 is NOT acceptable in lieu of an audit or certified financial review.
Marketing: all costs for marketing, publicity and promotion, related to the project. Do not include payments to individuals or firms which belong "Personnel," or "Outside Fees and services." Include costs of newspaper, radio and television advertising, printing and mailing of brochures, flyers and posters, and food, drink and space rental when directly connected to promotion, publicity, or advertising.
Marketing plan: a plan used in the field of marketing that encompasses an organization or any part of it. The plan includes a situational analysis, budget, action plan, problems and opportunities, goals, strategies, and monitoring systems.
Match or Matching funds: in order to be awarded a grant from CAC, an applicant must be able to match the CAC grant award on a dollar-to-dollar basis. The match can be a combination of earned or contributed income plus the market value of in-kind contributions.
Mission Statement: a statement of purpose formulated by an organization as part of its organizing charter and providing specific direction for the organization's programs services and activities.
Olympian method: the single highest score and the single lowest score submitted by the panelists will be eliminated when computing the average score of all the panelists. This will produce an average score that is unsusceptible to a panelist skewing the average score either in favor of or against a grant applicant.
Operating Support: wages, overhead, and depreciation, as they figure into the calculation of net income.
Other Private Support: cash support derived from cash donations. Do not include corporate, foundation, or government contributions and grants, that are related to the project. Include gross proceeds from fund-raising events.
Outside Artistic Fees and Services: payments to firms or persons for the services of individuals who are not normally considered employees of "Applicant" but consultants or the employees of other organizations, whose services are specifically identified with the project. Include artistic directors, directors, conductors, curators, dance masters, composers, choreographers, designers, video artists, filmmakers, painters, poets, authors, sculptors, graphic artists, actors, dancers, singers, musicians, teachers, instructors, etc. serving in non employee/non-staff capacities.
Outside Other Fees and Services: Payment to firms or persons for non-artistic services of individuals who are not normally considered employees of "Applicant" but consultants or the employees of other organizations who are related to the project.
Overhead: general expenses (such as utilities, insurance, and rent) that are necessary to an organization.
Permanent and viable base of operations: an organization's administrative and operational functions must be headquartered in Cuyahoga County and it must present the majority of its programs and services in Cuyahoga County for the residents of Cuyahoga County and visitors to Cuyahoga County.
Personnel, Administrative: Payments for employee salaries, wages, fees, and benefits specifically identified with the project, for executive and supervisory administrative staff, program directors, managing directors, business managers, press agents, fund raisers; clerical staff such as secretaries, typists, bookkeepers; and supportive personnel such as maintenance and security staff, ushers and other front-of-the house and box office personnel.
Personnel, Artistic: Payments for salaries, wages, fees, and benefits specifically identified with the project for artistic directors, directors, conductors, curators, dance masters, composers, choreographers, curators, dance artists, filmmakers, painters, poets, authors, sculptors, graphic artists, actors, dancers, singers, musicians, teachers, instructors, puppeteers, etc.
Personnel, Technical/Production: Payments for salaries, wages, and benefits specifically identified with the project, for technical management and staff, such as technical directors; wardrobe; lighting and sound crew; stage managers, stagehands; video and film technicians, exhibit preparators, and installers, etc.
Project: one-time events, activities or programs, or a continuation of yearly projects or programming.
Publicly funded organizations: (For project support grants only) Examples of organizations that are funded through state and/or local taxes or appropriations are: public educational institutions including school districts, community colleges and universities; public libraries; units of local government and other government entities.
Qualifying arts or cultural organization: defined by the Ohio Revised Code, Chapter 3381, as "any arts or cultural organization whose income is exempt from federal income taxation, has been in existence for at least three years or is a successor to an arts or cultural organization which had been in existence for at least five years, and has a permanent and viable base of operations within the arts and cultural district."
Staff or Personnel: those whom an organization employs by paying salaries, wages and benefits. These employees receive an IRS Form W-2 for tax purposes at the end of the year.
Strategic plan: a three to five year planning document developed by an organization's staff and board of directors with advice from the organization's stakeholders. The document should contain a mission statement, goals, objectives and strategies. Strategies are the specific actions to be performed to meet the objectives thus fulfilling the goals. The strategic plan should identify specific staff and board committees that are responsible for developing, implementing and evaluating strategies; timelines to launch and complete strategies; and evaluations methods used to measure the plan's effectiveness.
