How to Speak Fundraiser
Recently, my sister who also happens to be an active board member and has served on multiple boards, reminded me that it can be difficult for new board members to learn the nonprofit lingo.
She’s so right. Like in any professional space, we develop our own vocabulary. Those working in the space quickly become native speakers. Learning a new technical jargon can be tricky.
Several years ago I developed this glossary of commonly used fundraising terms. Now, you, too can interpret words like cultivation, stewardship, campaign, major donor, recognition and so on.
Share this post with your board members and coworkers and in no time, everyone in your organization will be speaking fundraiser like pros!
A GLOSSARY OF FUNDRAISING TERMS
Annual Giving
A broad term for programs that reach out to the greatest numbers of alumni/ae and friends and provide the broadest opportunities and encouragement for the organization’s constituencies to make a gift each year.
Bequest
A transfer of property such as cash, securities (stocks), and tangible property through a will.
Campaign
A comprehensive, organized initiative with a goal of raising money for an organization.
Capital Campaign
A campaign to raise funds to finance major projects and/or programs such as the acquisition of property or equipment, construction and/or renovation of facilities.
Cultivation
A process of promoting or encouraging interest and/or involvement on the part of a potential donor or volunteer leader; an educative process to inform about an institution, reasons why it merits support.
Direct Mail
Solicitation of gifts or volunteer services and distribution of information pieces by targeted mass mailing.
Donor
A person or entity (foundation, corporation, etc) who has made a gift to the organization in either the current fiscal year or in the immediate past fiscal year.
Donor Profile
A description of basic information about an individual donor through research.
Donor Recognition
The practice of providing recognition to donors for their gifts. Examples include the acknowledgment by card or letter at the time a gift is received, personal or public expressions of appreciation directly to donors, and published lists of contributors.
Employee Matching Gift
Gifts made with company or corporate foundation funds that match gifts made by a company's eligible employees to organization to the company's guidelines.
Endowment
Money from bequests or outright gifts to the organization that is invested in perpetuity to produce amounts to be distributed for pre-determined purposes according to the endowment distribution policy. Funds deposited in an endowment are not expendable; they are invested for the purpose of retaining and increasing the principal of the endowment. Distribution of earnings from the endowment coincides either with the donor's wishes or, if there is no restriction on spending the earnings, at the discretion of leadership of the organization.
501(c)(3)
The section of the Internal Revenue Code that defines nonprofit, charitable (as broadly defined), tax-exempt organizations; 501(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations.
Form 990/Form 990-PF
The IRS forms filed annually by public charities and private foundations respectively. The letters PF stand for private foundation. The IRS uses this form to assess compliance with the Internal Revenue Code. Both forms list organization assets, receipts, expenditures and compensation ofofficers and grants. Form 990-PF includes a list of grants made during the year by private foundations. These forms are available for public inspection.
Fundraising Event
A form of fundraising which involves the organization and staging of a special event for charitable purposes; all proceeds above expenses are designated as a contribution to the charitable institution concerned.
Gift
A voluntary, irrevocable, unconditional transfer of an asset.
Gift Agreement
A contract between the organization and a donor that specifies the terms of a donor's gift.
Gift-In-Kind
Non-monetary items of tangible personal property such as art, collectibles, books, equipment, and other physical assets or materials which have value to the organization.
Gift Planning
The integration of personal, financial, and estate planning concepts with the individual donor's plans for lifetime or testamentary giving.
Grant
Generally, an allocation from a foundation, corporation, or government agency.
Honorarium Gift
A gift to the organization given in honor of a living individual, as designated by the donor.
Lapsed Donor
A person who had made a gift to the organization during a previous fiscal year but not in the current or immediate past fiscal year.
Letter of Intent
A letter of intent states a prospective donor's intention to make a gift. The letter may also contain the prospective donor's wishes as to the specific type, size, and purpose of the gift. Usually, such a letter is not legally binding but does assist the donor and institution in planning. A letter of intent can also be called a pledge.
Major Gift
A significant donation to the organization. The amount required to qualify as a major gift is determined by the organization.
Matching Fund (Also sometimes known as Challenge Fund)
A gift that is made on condition that it be matched within a certain period, either on a one-to-one basis or in accordance with some other formula.
Memorial Gift
A gift to the Foundation commemorating someone who has died, as designated by the donor. Upon request, the organization will notify the appropriate family members of memorial gifts.
Monthly Giving
Donors allow a nonprofit organization to charge their credit card a pre-set amount each month.
Nonprofit Organization
A term describing the Internal Revenue Service's designation of an organization whose income is not used for the benefit or private gain of stockholders, directors, or any other persons with an interest in the company. A nonprofit organization's income must be used solely to support its operations and stated purpose.