13 Nonprofit Related Terms
While writing our last article “13 Essential Fundraising Terms”. We realized that we had a few terms we wanted to add, but they didn't really properly fit into that article. So we decided to just create another list for you. This a short list of 13 key terms you need to know that relate to both fundraising and nonprofits. We hope you enjoy this article.
So once again here they are, in no particular order.
1. Designated Gift
A commemorative gift given by a donor that is designated for a specific use or to support a particular cause is known as designated gift.
An individual, organization, or institution who donates something voluntarily.
3. Donor Acquisition
Donor Acquisition is the process of identifying, establishing communication and thus obtaining new donors.
4. Donor Recognition
It is the practice of acknowledging your supporters and donors for making a donation. The very first at the time of receiving the gift and subsequently at the success of your cause. The acknowledgment can be done via card or letter, through personalized notes, personal thank you notes, published lists of contributors, and through other ways.
5. Donor Advised Fund (DAF)
A donor-advised fund can be compared to a personal charitable savings account. A donor creates an account that is managed by a nonprofit aka a sponsoring organization, which makes a contribution of cash, stock, or other assets on behalf of the donor.
6. Donor Retention
Donor retention is the measure in terms of number or percentage of donors who make another donation in a specific time period. A high donor retention rate implies that your organization has long-term supporters
In an endowment, a foundation or nonprofit establishes an investment fund. The nonprofit can then make consistent withdrawals from the invested capital. The principal investment amount remains intact and grows over time, while the investment income is used to support programs and operations.
8. In-Kind Gifts
Any tangible goods donated to a charitable organization is called in-kind gift. It is also known as gifts-in-kind or non-cash contributions.
9. Major Gifts
Any gift your nonprofit receives that can have a significant or large impact on you reaching your fundraising goal would be classed or termed as a major gift.
10. Matching Grant
A challenge fund or matching grant, requires the receiver to raise an amount equal to amount being offered. Once they do that, you will receive the grant.
NGO is the abbreviation for NonGovernmental Organization. While they usually are funded by governments. They are not operated by or supervised by the government. NGOs are a subset of NPOs.
12. Planned (or Legacy) Gift
A planned gift (or legacy gift) is a charitable gift that is organized in the present and its date of delivery is at a future date. This is usually through a will or trust. The act of making these arrangements is called legacy giving or planned giving.
The custom of giving away a proportion of your income (usually 1/10th) to charitable causes is tithing. This amount can differ and is not mandatory for everyone.
That pretty much sums up our list of 13 Nonprofit terms you need to know. We hope you enjoyed reading this article. Since you got this far, why not visit some of the links below and read about a few of our causes we are trying to fund using crowd sourced ad revenue. The best part, it doesn't cost you anything and supports a good cause!