13 Essential Fundraising Terms
13 Essential Fundraising Terms
Here's a quick list of what we feel are 13 key terms you need to know and understand when it comes to fundraising. While this isn't every term you need to know. It will certainly help you get started :)
So here they are, in no particular order.
1. 501(c)(3)
Section 501(c)(3) of the US Internal Revenue Code applies to public charities, foundations operating for charitable purposes. The code allows for federal tax exemption of these nonprofit organizations.
2. 501(c)(4)
While 501(c)(3) applies to organizations operating for charitable purposes Section 501(c)(4) applies to organizations operating for social welfare purposes and such organizations may be entitled for federal tax exemption.
3. 990
Every nonprofit, whether exempted from tax, has to file an annual information form with the Internal Revenue Code (IRC). This form is called 990 form.
4. Advancement
An integrated method of managing alumni relations, communications, development, and marketing within educational institutions to encourage philanthropy.
5. Annual Giving
An ongoing fundraising effort to raise funds from the same constituency on an annual or recurring basis. They are the annually repeating gift programs.
6. Annual Report
A yearly report or documentation of the accomplishments, donor acknowledgments and financial records (the revenue and expenses) of the previous year
7. Benefit Event
A special event organized for charitable purposes where all proceeds above expenses are marked as a contribution to the concerned charitable institution.
8. Appeal
A fundraising or donation appeal is a part of the fundraising campaign. To ask supporters to donate for a cause is known as fundraising appeal. The ask can be made via email, social media, online donation campaign pages or directly through a letter- or a combination of these methods.
9. Call-to-Action
Call-to-Action is a phrase presented to your supporters which tells them what action you wish them to take. A good example would be a header on your website that would say “Please Donate”.
10. Capital Campaign
A campaign run for a specific length of time to help raise money to improve or acquire a physical asset. Common examples are to purchase land, buildings or renovate already owned assets.
11. Certified Fundraising Executive (CFRE)
CFRE is the abbreviation for Certified Fund Raising Executive. CFRE is an internationally recognized certification meant for fundraising professionals with five years of experience. The certification demonstrates expertise in the core knowledge and skills required for fundraising.
12. Charitable Contribution
A gift made by an individual or an organization to a nonprofit organization which is usually tax-deductible is known as a Charitable Contribution. It is most commonly in cash but can also be in forms of real estate, motor vehicles, clothes or any other assets.
13. Crowdfunding
Raising funds for a cause by soliciting several small donations from a large number of people, usually, carried out online.
We hope you enjoyed the article. If you haven't had a chance yet, why not check out some of our great causes below we are trying to fund using crowdfunded ad revenue. Its free and doesn't cost you anything to help!