Glossary

501(c)(3): The section of the tax code that defines nonprofit, charitable (in a broad sense), tax-exempt organizations. A 501(c)(3) organization may be a public charity, a private operating foundation or a private non-operating foundation.

advocacy: The process of attempting to influence public policies and resource allocations that directly affect people's lives. Advocacy efforts can be focused on political, economic or social institutions. See Lobbying.

bylaws: Rules governing the operation of a nonprofit corporation. Bylaws often stipulate methods for the selection of directors, the creation of committees and the conduct of meetings.

capacity building: Methods of strengthening the structure of an organization or expanding its ability to provide services. Examples of capacity building include strategic planning, board development, financial development and senior management training.

direct program operating costs: Costs that are exclusively associated with a program or project. These costs may include supplies, rent and equipment used solely for the project, in addition to staff and consultant travel. Alliance Healthcare Foundation requires that direct program operating costs be limited to 25 percent of a grant applicant's total budget request.

evaluation: A process of assessing the effectiveness and overall quality of a program, to determine whether it has produced the desired results. There are four major types of evaluation:

formative evaluation: Conducted primarily at the beginning of the program, this process includes all research that will guide the implementation of the program. Examples include reviews of existing literature, pre-testing materials and an assessment of needs.

process evaluation: An examination of the procedures and tasks involved in implementing a program. Process evaluation can answer questions about:

• the types and quantities of services delivered;
• beneficiaries of the services;
• resources used; and
• problems encountered.

Process evaluation cannot determine whether the program has an effect on health behaviors or health status.

outcome evaluation: A means of providing information about the value of the program and the achievement of short-term objectives. An outcome evaluation surveys the immediate effects of a program on the target population, to discover:

• changes in people's knowledge and attitudes;
• the degree to which people say they intend to change their behaviors; and
• actual behavioral changes.

An outcome evaluation can also survey the effect of a program on policymaking and the actions of institutions.

impact evaluation (also known as a "summative" evaluation): The most comprehensive type of evaluation, focusing on long-term changes resulting from the program. An impact evaluation can be difficult and costly to carry out, since it is typically conducted over long periods of time, and external factors may affect the ability to attribute results directly to the program. Impact evaluations may look at:

• changes in health status;
• changes in mortality rates;
• long-term maintenance of a behavior;
• recidivism (the tendency to relapse into a previous mode of behavior); or
• broader policy changes.

expenditure responsibility: By law, a private foundation that makes a grant to an organization not classified by the IRS as tax-exempt under Section 501(c)(3) and as a public charity according to Section 509(a) is required to ensure that the funds are spent for charitable purposes and not for private gain or political activities. Such grants require a pre-grant inquiry and a detailed, written agreement. Special reports on the status of the grant must be filed with the IRS, and the grantees must be listed on the foundation's IRS Form 990-PF.

health indicators: Characteristics of an individual, population or environment that may be measured and can be used to describe one or more aspects of the health of an individual or population. Health indicators may include measurements of:

• illness or disease;
• positive aspects of health, such as quality of life and life skills; and
• health-related behaviors and actions by individuals.

Health indicators may also measure social and economic conditions and physical environments as they relate to health.

health outcomes: Changes in the health status of an individual, group or population that are attributable to a planned intervention or series of interventions. Interventions may include:

• government policies, and programs based on those policies;
• laws and regulations; and
• health services and programs, including health promotion programs. Health promotion outcomes are changes—in personal characteristics and skills, social norms and actions, or organizational practices and public policies—that can be attributed to health promotion activities.

indirect costs: The portion of an organization's overhead that is used to support a specific program. Indirect costs may include administrative and clerical salaries, utilities, maintenance, and audit and legal expenses.

in-kind contribution: A donation of goods or services rather than cash.

Letter of Intent: A letter sent to a potential funder that outlines an organization's activities and briefly describes its request for funding. See How to Apply.

lobbying: Efforts to influence legislation by influencing the opinions of legislators, legislative staff and government administrators directly involved in drafting legislative proposals. The Internal Revenue Code sets limits on lobbying by organizations that are tax-exempt under Section 501(c)(3). Public charities may engage in lobbying, so long as it does not become a substantial part of their activities. A private foundation generally may not lobby government officials except in limited circumstances (for example, on issues affecting the foundation's tax-exempt status or the deductibility of a gift it has received). However, conducting nonpartisan analysis and research, and disseminating the results to the public, is generally permitted. See Advocacy.

matching grant: A grant that is made in response to a grant provided by another donor organization. Typically, the initial donor specifies the matching ratio (for example, two to one, or $2 for every dollar contributed).

measurable objective: A statement that communicates in specific and concrete terms the observable results to be achieved. . It should be defined in terms of percentages and include a time frame.

operating funding: Funding for an established program.

prevalence: The number of cases of disease or infected persons at a particular time, and in relation to the population size (e.g., the number of cases of hemophilia in the U.S. as of January 1, 2006).

proposal: A written application requesting a grant, often accompanied by supporting documents. To apply for a grant from the Alliance Healthcare Foundation, organizations must first send a Letter of Intent rather than a formal proposal. After the Letter of Intent is reviewed by AHF Program staff, you will be informed whether to follow up with a proposal.

site visit: A formal visit made by foundation staff to an agency, organization or program facility, as part of the monitoring process. Alliance Healthcare Foundation may request a site visit after an organization has submitted a Letter of Intent.

technical assistance: Operational or management guidance provided to nonprofit organizations. Technical assistance may include budgeting and financial planning, program planning and marketing. Assistance may be offered directly by foundation staff, or provided in the form of a grant to pay for the services of an outside consultant.

unrestricted funds: Agency monies that are not designated by the donor or grantor for a particular purpose, or funds for which restrictions have expired or have been removed.