Dictionary

financial endowment: A transfer of money or property donated to an institution, with the stipulation that it be invested, and the principal remain intact.

fixed-rate loan: A loan that has a specific, unchanging interest rate throughout the life of the loan.

foreclosure: When a lender repossesses and sells a property due to the nonpayment of a loan.

foundations: A legal categorization of non profit organizations that usually have charitable purposes. They may either donate funds and support to other organizations, or provide the sole source of funding for their own charitable activities.

founder’s syndrome: A label used normally to refer to a pattern of negative of undesirable behavior on the part of the founder or founders of an organization. This can be a problem with getting away from the vision of a non profit organization or charity.

fundraising: The process of soliciting and gathering money or other types of gifts, by requesting donations from individuals, businesses, charitable foundations or governmental agencies.

grace period: A short period of time after a loan payment when a borrower isn't responsible for making payments. During a loan's grace period, a borrower doesn't have to worry about penalties or late charges added to the principle. Most grace periods are either 3 or 6 months after the loan payment.

grants: Funds given to tax-exempt non profit organizations or local governments by foundations, corporations, governments, small businesses and individuals.

grassroots: A type of organization that uses volunteers in the community to give their time to support another party.

hedged position: In the stock market, a position that reduces risk by making an educated guess that a stock, fund, etc will over or underperform over a period of time. Hedged positions leave a person with both an open buying and selling position.

hold harmless: A clause in a contract that does not hold another responsible for loss or damage.

humanitarian aid: Any given material or logistical assistance provided for humanitarian purposes, usually in response to crises.

indirect costs: Unidentifiable costs associated with a project. Indirect costs of a project include copyright fees, data processing fees, the cost of utilites, etc.

insolvency: A lack of financial resources, i.e bankrupt.

intangible asset: An asset that has no physical properties, such as a copyright or a trademark.

interest rate: The monthly rate paid on borrowed money that is a percentage of the amount borrowed. The percentage of the interest rate is determined by the amount borrowed, the borrower's credit history, the term of the loan and other factors laid out by the lender.

interest: An amount charged for borowwing money. Interest is expressed as a percentage of the principle amount borrowed.

interim financing: The financing that supports a project until permanent financing is arranged.

inventory: The value of a stock of goods.

invoice: A bill for goods or services.

just-in-time inventory: Having the right product in the right amount at the right time. Businesses that keep just-in-time inventories only reorder once the inventory has dropped to a certain level. This saves space in the warehouse and prevents a company from over buying and wasting money on unused inventory.