Appeal – What you are asking for and why – who it will help.

Asset lock – A legal clause in your governing documents that ensures your organisation’s assets can only be used for its community or charitable purpose- you will not be able to distribute funds as dividends.

Budget – the money you will need for running your activity / service. Have a look at our budgeting information.

Business plan - A business plan is a written document and includes things you need to do to make your idea a reality over 3 to 5 years. You can write a plan for your whole business, or a particular project. A Good business plans are written in a way that you can understand & use, like a good instruction manual. 

Capital – Equipment, buildings e.g., purchase, refurbishment, related professional fees - check with funder first.

Cashflow - Planning & regularly checking how much money is going or flowing into & out of your business. This helps to plan better & sometimes save money. 

Commissioning - The process of specifying, securing, and monitoring services to meet people’s needs at a strategic level. This applies to all services, whether they are provided by the local authority, NHS, other public agencies or by private or voluntary services.

Contract – a written legal agreement between the organisation or individual/s buying a service or product and the seller.

Core costs - include staff salaries, rent, utilities, general office costs, accountancy and audit costs, fundraising, governance and compliance and costs supporting the core programmes of the organisation.

Corporate – companies or businesses.

Demand - making sure you know whether enough people will use your service or activity , especially if you are asking for funding .

Donor – people or organisations that gift money, goods, or services

Donors – people or organisations that give money (donation)

Entrepreneur – a person who starts & runs a business.

Equity shares – with your agreement the lender/ investor owns shares in your organisation - for example, 10% of profits (one tenth) to help repay a loan.

Expression of Interest (EOI): Sometimes called a stage 1 application. An outline of your project idea for the funder to decide if your application is eligible.

Fees – Money that must be paid for using the crowdfunding or online site. Crowdfunding sites charges can include how much you raise, for using the platform, processing credit cards, number of transactions.

Framework agreement – an agreement with one or more contractors specifying the terms and conditions (including price) under which specific purchases (‘call-offs’) can be made but which does not commit the contracting authority to any purchases.

Goods – items or things that a business such a as social enterprise might sell such as the flowers, food, and gift items.

Governance - The Board of directors or trustees of an organisation must look after (manage) and lead their organisation properly, including keeping to the law, planning ahead, managing money and people carefully & providing good services / products. Many Enterprises can fail because of poor leadership and governance. Any organisation you apply to for money such as grants, contracts or loans will ask for evidence or proof that an organisation is well run.

Interest – the amount you must pay for borrowing money e.g., an interest rate of 2% means paying back £2 if you borrowed £100 – a total of £202.

Investor – a person or organisation who give or lend money in return for a share of the enterprise or a share of the profits. Some investors may also help the enterprise develop.

Invitation To Tender (ITT) – The commissioner will ask you to submit an application/ tender if you pass the first stage – Standard Selection Questionnaire (SQ)

Match funding - Some funders will only part fund total costs. Funders may accept cash or in-kind match funding e.g., the time value of volunteers, the running costs the space the project/ activity will be held in. Each funder varies so please check.

Micro loans – small loans e.g., Banc Wales loans start for £1,000.

Need – making sure there is a need for you service or product, but. also making sure that enough people will want to use or buy it (demand).

Non-profit / not for profit – an organisation with charitable aims; a social enterprise. This wording can be confusing as social enterprises do aim to make a profit or surplus that they can put back into the business so it will continue or grow.

Online – Services, goods, information, and activities on the internet e.g., online training, online meeting, shopping.

Patient Debt - Regular repayments set at an agreed interest rate over several years.

Percentage - a part of money you raise e.g., 50% of £100 is £50 (half the amount)

Platform – the internet site for the crowd funder e.g., BOPP

Procurement - The whole process of buying or acquiring goods, work, and services, from inside and outside an organisation. The procurement process covers the whole cycle from identifying through to the end of a contract or the end of the useful life of an asset.

Project – a service or activity that has a beginning, middle and end, rather than everyday ongoing long-term activity.

Public Sector – Government organisations including the Civil service, the Police, National Health Service, Councils, Local Authorities, The Fire Service.

Purchasing - the process of securing or buying services or goods.

QR code (Quick Response Code) - a pattern that you point your phone camera at to connect to information such as websites, your contact details - any information you choose that is available via the internet. You can make or generate a QR code for free, but please check first!

Registered – e.g., with Charity Commission as a Charity; a Community Interest Company with Companies House, a Community Benefit Society with the Financial Conduct Authority (FCA).

Reserves – money belonging to your organisation that you have set aside in case you need it for example 3-6 months running costs in case you have a problem with funding.

Revenue – day to day expenses of running your project or activity e.g., salaries, bills, rent, rates.

Revenue Share - Repayments are based on your enterprise’s income performance.

Services - the activities that an organisation such as a social enterprise provides. These can be free such as community centre activities, or paid for such as cleaning, gardening, looking after someone.

Sharia finance or Islamic finance – a type of finance that works to the principles of doing no harm including investing in businesses related to alcohol, pork products, gambling, and weapons. Islamic principles believe it is wrong to “make money from money” so do not charge interest but have other ways of making income.

Social enterprise – A businesses which sells goods or services for a social or environmental good. Social enterprises put benefit to people & planet first & use most of their profits to further their mission.

Social entrepreneur – an individual or founder of a business whose business aims to make a positive difference to peoples’ lives & the environment.

Social Investment – loans with support / advice & flexible repayment options & based on the enterprise’s ability/ needs also can be a mix of grant & loan.

Stakeholders – These are all the people, groups and organisations who are involved in your enterprise – directors, suppliers, the community, customers, clients, supporters, volunteers.

Standard selection questionnaire (SQ) – The first stage of the tendering process. A set of questions to help the funder decide if you are eligible to move to the next stage and bid for a contract.

Sub-contractor – an organisation that contributes to delivering the contract and is directly accountable to the main supplier.

Supplier – the organisation providing the service or goods (if you secured a contract, you would be the supplier) and directly accountable to the paying public body.

Tender - tendering is the process by which an organisation who needs goods/services invites other people or organisations to submit a proposal or bid to provide these goods/services. Tendering is when you bid for a contract. The buyer, in need of goods/services, invites suppliers to submit a proposal/tender to provide the goods/services.

Unrestricted funding – the grant can be used as the organisation needs it e.g., running costs, for specific projects if your work fits the funder’s priorities.

Working capital – Any form of money e.g., loans, grants, investment which will help to start, or develop a business, e.g., buying premises, materials, equipment.

Welsh Index of Multiple Deprivation WMID - Some funders will only make grants in areas of deprivation for example e.g., Trusthouse, Henry Smith Charity. WIMD Welsh Index of Multiple Deprivation | GOV.WALES

Please contact us if you need more information or advice