# Call for proposals & terms of reference

For the full [**fundraising lexicon**](https://fundraising-guide.gfmd.info/annex/lexicon) (A-Z) go to

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## Call for proposals

#### This is probably the most common method for allocating funding for media projects. Donors launch a formal call that is based on key strategic goals and priorities. 

The instructions to applicants include [**eligibility criteria**](https://fundraising-guide.gfmd.info/annex/application-forms#eligibility-criteria) defining the nationality, legal status and profile of organisations that may apply. 

Guidelines may also stipulate ceilings and floors for [**budgets**](https://fundraising-guide.gfmd.info/annex/lexicon/budgets) as well as timeframes both for the application process and the eventual project. 

[**Calls for proposals**](#call-for-proposals) may comprise multiple stages ([**concept notes**](https://fundraising-guide.gfmd.info/annex/applications-offers#concept-note), [**full applications**](https://fundraising-guide.gfmd.info/annex/applications-offers#full-application) etc.) or may be based on a single round.

## Open calls

**Calls for proposals are often termed as “open calls”, meaning that they are effectively open for all eligible organisations to apply.**

They are distinct from calls which have already been through a short-listing process and are, therefore, only open to a pre-selected group of applicants. In addition, some donors use the term “open calls” to describe grant programmes which are continuously open – i.e. that do not have submission deadlines and accept applications as long as funds are available.

## Lots

#### Calls for proposals may be divided into separate lots, each with a budgetary allocation and a thematic focus. 

The idea is to ensure that global budgets can be properly spread across core priorities. 

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There are often limits for the number of lots which any one organisation can apply for under a single programme.
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## Tenders

**A tender is a competitive procurement process whereby a donor gives shortlisted applicants (often working in** [**consortia**](https://fundraising-guide.gfmd.info/annex/lexicon/..#consortium-stakeholders)**) the chance to make a technical and financial offer for a predefined set of services. These services are described in detail in the** [**Terms of Reference**](https://fundraising-guide.gfmd.info/annex/lexicon/..#terms-of-reference-call-for-proposals-and-tors) **for the tender.**

Effectively, applicants need to demonstrate that they have the resources, experience and methodologies needed to achieve the project’s goals as well as a deep understanding of the operating environment and context in which the project will unfold.

The financial offer should also be competitive but this is not simply a question of undercutting the rival consortia. Usually, the scoring matrix is weighted in favour of the technical offer, so a very strong proposal can win a tender, even if the financial offer is not the lowest of those submitted.

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For EU tenders, the common wisdom is that bidders should put in a price that is between 8% and 12% lower than the maximum budget allowed. However, there are plenty of examples of successful bids that have sailed much closer to the wind.
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## Terms of Reference

#### Also known as a Statement of Requirements, Terms of Reference (ToRs) set out the donor’s vision of the programme, highlighting the strategic [objectives](https://fundraising-guide.gfmd.info/annex/application-forms#specific-objectives) and the desired or anticipated [results](https://fundraising-guide.gfmd.info/annex/application-forms#results). 

ToRs vary enormously in the level of detail presented, ranging from just a few lines to dozens of pages. 

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Applicants are strongly advised to ensure that their project ideas fall clearly within the parameters of the Terms of Reference: applications which respond to only a part of the ToRs are rarely successful. 
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In the case of two-stage competitive tenders, this document may be published only after the applicants have been short-listed.