Grants & Services for Organizations
Grants Guidelines › Glossary
Audited Financial Statements
Generally known as "the audit," this document contains an organization's fiscal-year financial transactions. Certified public accountants review the transaction for compliance with Generally Accepted Accounting Principles (GAAP). Audited financial statements ensure credibility of the financial records and are tools for making sound financial decisions.
Capital Expenditures
For GCAC grants, capital expenditures are assets with a useful life over three years and a fair market value exceeding $1,000. Maintenance and repairs that increase the life of an asset will not be recognized for the purpose of determining the grant.
Columbus Arts Stabilization Project
A granting program which officially began in 1994, the Columbus Arts Stabilization Project was developed with contributions from corporations as well as federal, state and local governments. Several years of technical assistance were provided to nine major institutions by the staff of National Arts Stabilization, a nonprofit grant giving organization in Baltimore, Maryland. Each organization created a plan to strengthen the financial profile of the organization and create a working capital reserve. The principles of stabilization form the basis for many requirements in the Operating Support program.
Current Assets
Resources of an organization that are cash or readily turned into cash within one year.
Current Liabilities
Debts and obligations of an organization that are due within one year.
Fiscal Agent
A nonprofit organization that holds the tax-exempt status known by the tax code 501(c) (3) and that agrees to submit applications on behalf of an individual or organization that does not yet have tax exemption. Individual artists and organizations that do not have tax-exempt status at the time of application must employ a tax-exempt organization to serve as a fiscal agent. The fiscal agent is legally responsible for the completion of the project and for the proper management of the grant award. The fiscal agent must therefore sign the application and, if a grant is received, sign the contractual letter. The management of fiscal agent grants is not the sole responsibility of the fiscal agent. Artists or project directors must also sign the application and contractual letter, and are responsible for the management of the project.
Fund for Working Capital Reserves
As a part of the Columbus Arts Stabilization Project, the Fund for Working Capital Reserves was a granting program intended to help smaller arts organizations establish good management practices, understand and use financial reports in making decisions about programming and establish working capital reserves equal to approximately 10% of an organization's operating expenses. In 1995, four mid-sized organizations in the Operating Support Program were awarded pilot funding for arts stabilization through the GCAC/City of Columbus Grants Program. A special one-time grant from the city of Columbus allowed GCAC to extend stabilization incentives to smaller established not-for-profit arts organizations. Twenty arts organizations received awards through the Fund for Working Capital Reserves.
Matching Funds
Grant dollars are typically one portion of the income for any art activity. The additional funds necessary to complete the activity are called matching funds. For GCAC, matching funds should equal or exceed the amount of the grant request.
Net Current Assets
Net Current Assets = Current Assets, minus permanently Restricted Current Assets, minus Current Liabilities
Professional Artist
For GCAC, an individual who generally devotes a large portion of time to the development of one or more art forms, and who has achieved recognition within the community for artistic accomplishments. The professional artist is frequently paid for performances or the creation of art.
Statement of Activities & Statement of Financial Position
Components of audited financial statements. The Statement of Activities provides information on how financial transactions have affected the organization over the previous fiscal year. The Statement of Financial Position provides information concerning an organization's assets, liabilities, net assets, liquidity and financing and investing activities.
Working Capital Reserves
GCAC has adopted this definition of a working capital reserve from National Arts Stabilization:
Cash or cash equivalents that have been designated by the board, or restricted by a donor, to serve as a cash flow management tool. These funds generally are physically segregated from operating funds and replenished on a revolving basis, and therefore are not used to cover shortfalls in operating resources. Working capital reserve funds allow the organization to serve as its own lender, without incurring interest expense, during the low periods of the cash flow cycle. A working capital reserve should be funded in an amount that reflects the historical cash flow of the organization during a typical year. Ideally, the working capital reserve should provide a source of cash to span an organization's low revenue portion of each annual cycle.
Once an organization meets the goal for a working capital reserve, it should consider additional reserves. Examples are: artistic reserves (which encourage risk taking and innovation); facility reserves (which provide for and maintain the physical assets of the organization); and ultimately, endowment (which earn additional revenues for added security and growth).
GCAC Grants Program Contact Information
GCAC/City of Columbus Grants Program
100 E. Broad Street, Suite 2250
Columbus, OH 43215
office hours: 9:00 a.m. to 5:00 p.m. Monday through Friday
Alicia Oddi, Director of Grants & Services
Ruby Classen, Finance & Grants Administrator
voice: 614/224-2606
fax: 614/224-7461
email: grants@gcac.org
Visit the Community Funding section of www.gcac.org for forms and instructions.
