Jargon of the day: Burn Rate

Jargon: Burn Rate

Meaning: How much a development project spends each month, or each year. You need to keep an eye on your burn rate to make sure that you’re not going to be overspent by the end of your project or not spend all your money and have to give it back to the donor (and do less work than you could have.)

Jargon of the day: Monetization


Jargon of the Day: Monetization

Meaning: Monetization means something slightly different in a humanitarian and development context than it does in social media. In this case, it means selling food aid commodities in order to take the money and fund non-food projects. Many, perhaps most, food aid projects are actually monetization projects. It’s often the most useful thing to do with donated rice or flour.

I hate this word because it keeps you from thinking about what a convoluted process selling commodities actually is. It’s a tidy, professional-sounding word that covers up the fact that we are taking American-grown commodities, selling them in foreign countries, and then using the money for projects. Perhaps we should just donate money in the first place?

Jargon of the day: NFIs


Jargon: NFIs

Translation: NFIs stands for Non-Food Items. This is a package of household items such as blankets, utensils, and cooking pots given to refugees or internally displaced persons to help them survive in their new location. You can find the term in jargony, jargony action here. You can find a definition and discussion here.

Jargon of the Day: Leverage


Jargon: Leverage

Translation: Officially, it means to use one kind of funding as a way to inspire other donors. So you could leverage a $500 donation by getting a foundation to match it, and have $1000. In practice, though, it just means to use multiple funding streams to fund one project, whether or not the later funds were donated because of the first ones. NGOs claim all the time that they are leveraging your donation when what they really mean is “combining with other kinds of money.”