Appeal
What you are asking for and why, including 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 or service.
Business Plan
A written document setting out what you need to do to make your idea a reality over 3 to 5 years. It can cover your whole business or a specific project.
Capital
Equipment or buildings, such as purchase, refurbishment or related professional fees. Check with the funder first.
Cashflow
Planning and regularly checking how much money is flowing into and out of your business.
Commissioning
The process of specifying, securing and monitoring services to meet people’s needs at a strategic level.
Contract
A written legal agreement between the organisation or individual buying a service or product and the seller.
Core Costs
Costs such as staff salaries, rent, utilities, office costs, accountancy, audit, fundraising, governance and compliance.
Corporate
Companies or businesses.
Demand
Making sure enough people will use your service or activity, especially if you are asking for funding.
Donor / Donors
People or organisations that give money, goods or services.
Entrepreneur
A person who starts and runs a business.
Equity Shares
With your agreement, the lender or investor owns shares in your organisation, for example 10% of profits to help repay a loan.
Expression of Interest
Sometimes called a stage 1 application. An outline of your project idea so the funder can decide if your application is eligible.
Fees
Money paid for using a crowdfunding or online platform. Charges may relate to how much you raise, platform use, card processing or number of transactions.
Framework Agreement
An agreement with one or more contractors setting out terms and conditions for future purchases, without committing the buyer to purchase.
Goods
Items or things a business or social enterprise might sell, such as flowers, food or gifts.
Governance
How directors or trustees manage and lead an organisation, including legal compliance, planning, money, people and service quality.
Interest
The amount you pay for borrowing money. For example, 2% interest on £100 means paying back £102.
Investor
A person or organisation that gives or lends money in return for a share of the enterprise or profits. Some investors also help the enterprise develop.
Invitation to Tender
The commissioner asks you to submit an application or tender if you pass the first stage, such as a Standard Selection Questionnaire.
Match Funding
Some funders only part-fund costs. They may accept cash or in-kind contributions, such as volunteer time or running costs.
Micro Loans
Small loans, for example loans starting from £1,000.
Need
Making sure there is a need for your service or product, and that enough people will want to use or buy it.
Non-profit / Not for Profit
An organisation with charitable aims, such as a social enterprise. Social enterprises may still make profit or surplus, but reinvest it into their mission.
Online
Services, goods, information and activities on the internet, such as training, meetings or shopping.
Patient Debt
Regular repayments set at an agreed interest rate over several years.
Percentage
A part of money you raise. For example, 50% of £100 is £50.
Platform
The internet site used for crowdfunding or online donations.
Procurement
The whole process of buying or acquiring goods, work and services, from identifying a need through to the end of a contract.
Project
A service or activity with a beginning, middle and end, rather than ongoing everyday work.
Public Sector
Government organisations including the Civil Service, Police, NHS, councils, local authorities and Fire Service.
Purchasing
The process of securing or buying services or goods.
QR Code
A pattern scanned by a phone camera to connect to information such as websites, contact details or online forms.
Registered
For example, registered with the Charity Commission, Companies House or the Financial Conduct Authority.
Reserves
Money your organisation sets aside in case it is needed, such as 3–6 months’ running costs.
Revenue
Day-to-day expenses of running a project or activity, such as salaries, bills, rent and rates.
Revenue Share
Repayments based on your enterprise’s income performance.
Services
Activities an organisation provides, either free or paid for, such as cleaning, gardening, care or community centre activities.
Sharia / Islamic Finance
Finance based on ethical principles, including doing no harm and not charging interest. Income is generated in other ways.
Social Enterprise
A business that sells goods or services for social or environmental good, putting people and planet first and using profits to further its mission.
Social Entrepreneur
An individual or founder whose business aims to make a positive difference to people’s lives or the environment.
Social Investment
Loans with support, advice and flexible repayment options, sometimes combined with grant funding.
Stakeholders
All the people, groups and organisations involved in your enterprise, including directors, suppliers, community, customers, supporters and volunteers.
Standard Selection Questionnaire
The first stage of tendering. A set of questions to decide if you are eligible to move to the next stage and bid for a contract.
Sub-contractor
An organisation that helps deliver a contract and is directly accountable to the main supplier.
Supplier
The organisation providing the service or goods and directly accountable to the paying public body.
Tender
The process where an organisation invites others to submit a proposal or bid to provide goods or services.
Unrestricted Funding
Funding that can be used as the organisation needs, such as running costs or project work that fits the funder’s priorities.
Working Capital
Money such as loans, grants or investment that helps start or develop a business, such as buying premises, materials or equipment.
Welsh Index of Multiple Deprivation
Some funders only make grants in areas of deprivation. The Welsh Index of Multiple Deprivation helps identify these areas.