Capital Funds: Money for buying land, buildings, equipment, etc. that are used to produce products or provide services.
Corporate Contributions: Financial support from a business, not through a related Foundation.
Direct Costs: Costs which relate to the specific project or program. Examples: contracted faculty for April – May workshops, supplies for the summer camp program.
Equipment: Equipment to be purchased, or rented, in direct support of the project or program.
Foundation Support: Generally a grant received for specific project support or shared operating support.
Fringe Benefits: Something that a person receives for working in addition to pay, which is not in the form of money. Example: health insurance.
Government Support: Financial support received from government agencies (Federal, state, county, and city).
Indirect Costs: Indirect costs, sometimes called overhead or common cost pool, do not relate solely and specifically to a particular project or program, but are necessary to its completion. Examples: office rent, telephone.
In-Kind Goods / Services: In-Kind contributions comprise donations of professional services or other goods and services. You should not record an In-Kind donation unless you would have to pay for the goods / service, if it was not received as “In-Kind”. In-Kind contributions are net-zero (i.e., contribution and expense are equal, so they do not affect the bottom line net; however, they do increase the magnitude of the income and expenses. Volunteer hours do not qualify to be reported as income under GAAP (Generally Accepted Accounting Principles). Alternatively, a narrative note in your proposal should describe the role of volunteers and the impact of their hours.
Investment Income: Earned income. Examples: Interest, dividends on an endowment.
Marketing: The total cost associated with delivering goods or services to customers. The marketing cost may include expenses associated with transferring title of goods to a customer, storing goods in warehouses pending delivery, promoting the goods or services, or the distribution of the product.
Personnel: Costs of staff assigned to the project / program comprising actual salaries plus social security charges and other statutory costs included in the remuneration.
Supplies / Materials: Includes all consumable materials purchased in direct support of the project or program.
Variable Costs: Variable costs are usually project oriented and are more controllable or adjustable. Examples: number of participants served by a program, number of weeks a program runs, number of exhibitions or concerts, local or international. Semi- variable costs are in between. These must happen, but can be mitigated somewhat. Examples: choosing color versus black & white for a print job, short term rental versus purchase of equipment.