Accounting Policy
A predetermined policy dictating the appropriate account
management of all contributions received.
Accounting Procedures
Those procedures established to make sure that all contributions
are properly accounted for, managed, and disbursed in accordance
with the approved accounting policy.
Accounts Receivable
Office procedure to control collections on pledges, including
file reflecting balances due on pledges, terms of payment, records
of payments made, and dates made.
Acknowledgement
Written expression of gratitude for gift or service.
Acquisition Mailing (or prospect mailing)
A mailing to prospects to acquire new members or donors.
Advisory Board
A group of influential and prominent individuals whose
association with a development programme is calculated to lend
credibility and implied endorsement of the programme's goals
and objectives.
Analysis
That section of a study that deals with the factors essential
to success in a fundraising programme; principally the case for
support, leadership potential, and fields of support.
Annual Giving
Annually repeating gift programmes; seeking funds on annual or
recurring basis from same constituency; income is generally
used for operating budget support.
Appeal Consultant
Person whose role it is to devise and implement a strategy to
help achieve the goals of a specific charity fundraising
appeal.
Audit
An internal evaluation of development procedures as practiced
by a not-for-profit institution or agency; normally conducted
by professional fundraising consultants.
Benefactor
One who makes a major gift to an institution or agency; also,
an arbitrary classification of contributors whose gifts are
above a certain level, which is calculated to single them out
as a group and to stimulate similar giving by others.
Benefit Event
A form of fundraising which involves the organisation and
staging of a special event for charitable purposes; all
proceeds above expenses are designated as a contribution to the
charitable institution concerned.
Big Gifts
A general term used to signify gifts in upper ranges, the
precise limits varying from institution to institution. Their
importance is emphasised in all fundraising campaigns.
Budget
A detailed breakdown of estimated income and expenses for a
development programme, prepared in advance. Budgets show
various cost categories, including personnel, printed
materials, purchase and rental of equipment, office expense,
headquarters, mailing charges, costs of events, etc.
Campaign
An organised effort to raise funds for a not-for-profit
organisation.
Campaign Costs
Expenditures that are deemed essential to the planning and
operation of a campaign and that are directly related to
campaign budget projections.
Capital Appeal
A carefully organised, highly structured fundraising programme
using volunteers supported by staff and consultants to raise
funds for specific needs, to be met in a specific time frame,
with a specific dollar goal. Allows donors to pledge gifts to
be paid over a period of years.
Case
Carefully prepared reasons why a charitable institution merits
support (in the context of the 'case bigger than the
institution'), including its resources, its potential for
greater service, its needs, and its future plans.
Case Statement
A written document presenting the case for support to potential
donors.
Cash Flow
Predictable cash income to sustain operations; in capital
campaigns or whenever pledges are secured, anticipation of
annual cash receipts resulting from payments on pledges.
Charitable Fundraising
Raising money to help not-for-profit organisations dedicated to
helping specific causes or ranges of causes, to achieve their
aims.
Charitable Trust
A body constituted as a charity whose express purpose is to
give money away to other voluntary sector bodies across a wide
range of needs.
Charity Consultant / Charity Fundraiser / Charity Fundraising Adviser
Professional fundraiser who advises charities, and other
not-for-profit organisations and agencies, how to raise money
to achieve their goals.
Contingent Gift
A gift that is made subject to certain conditions or
restrictions.
Corporate Foundation
The philanthropic arm created by a corporation to deal with
requests for contributions from whatever agencies - locally,
regionally or nationally.
Corporate Philanthropy
Support through gifts, equipment, supplies or other
contributions by business firms to charitable institutions,
sometimes through organised programmes that may include
corporate foundations.
Covenant
An agreement between a charity and a donor for a certain amount
to be given over a certain period of time.
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.
Development
Refers to all dynamics of a continuing fundraising programme
(annual giving, special gifts, planned gifts, public
relations).
Direct Mail
Solicitation of gifs or volunteer services and distribution of
information pieces by targeted mass mailing.
Donor Profile
A description of basic information about an individual donor
through research.
Endowment
Principal or corpus maintained in a permanent fund to provide
income for general or restricted use of an agency, institution
or programme.
Ethics
The moral considerations of the activities of a philanthropic
organisation. Also, standards of conduct and methods of doing
business by organisations of fundraising consultants that
provide assurances of professionalism in client relationships.
Feasibility Study
An in-depth examination and assessment of the fundraising
potential of an institution or agency, conducted by fundraising
consultants, and presented in the form of a written report
setting forth various conclusions, recommendations and proposed
plans.
Fundraising
The raising of funds for a specific cause.
Fundraiser
Person who organises and orchestrates the raising of funds for
a specific cause.
Fundraising Consultant
An individual operating independently, or a company organised
specifically for the purpose of advising charitable
institutions in all aspects of fundraising.
Gift Aid
UK taxpayers who give donations via Gift Aid are able to
generate an extra 28% (depending on the current rate of tax) of
funds for the charity they are donating to due to tax relief.
This also applies to regular donations made by direct debit on
a monthly, quarterly or annual basis. With tax claimed these
donations can grow substantially.
Gifts
Lead Gift
A gift given early in campaign that, by its nature and size,
tends to lead others to increase their level of giving; a
pacesetting gift.
Leadership
The force within an institution, agency, programme or
fundraising appeal that stimulates others to act or give.
Legacy
An amount of money left in a will or a bequest of personal
property.
Leverage
The power to influence another to contribute or to serve as a
volunteer.
Major Gifts
A gift of significant amount (size of gift may vary according
to organisation's needs and goals); may be repeated
periodically. Also a programme designation.
Market
Potential source of funds, members, or clients (individuals and
organisations).
Market Research
The process of gathering, recording, and analysing information
relating to the marketing of goods and services.
Match Funding
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; also a gift by a corporation matching
a gift by one of its employees.
Mission
A philosophical or value statement that seeks to respond to the
'why' of the organisation's existence, its basic reason for
being. Mission statement is not defined in expressions of
goals or objectives.
Not-for-profit Organisation
Organisations of members and/or volunteers that are classified
by the Inland Revenue as providing a public benefit without
purpose of profit for members of the corporation.
Patron
One who lends his or her name for purposes of promotion of a
benefit or similar affair; also, a category of contributors at
a certain level of giving to which an institution gives special
recognition. A well chosen patron is a valuable asset and puts
a charity on the map. They have no legal status or obligations
but lend their names to the cause as a hallmark or credibility
and stature.
Payroll Giving
A tax-effective payroll-giving scheme involves the employer
registering with one of the approved payroll agencies so that
employees can give to charity and save income tax by making a
regular deduction from their pay.
Philanthropist
Broadly speaking, anyone who makes a gift; but usually used to
describe a wealthy individual known for his/her exceptional
generosities in support of charitable causes.
Philanthropy
Volunteer action for the public good, including voluntary
service, voluntary association, and voluntary giving.
Pledge
A signed and dated commitment to make a gift over a specified
period, generally two or more years, payable according to terms
set by the donor, with scheduled monthly, quarterly,
semi-annual, or annual payments.
Professional Fundraiser
Professional consultant who advises, helps to plan, co-ordinate
and implement fundraising strategy for major capital appeals.
Proposal
A written request or application for a gift or grant that
includes why the project or programme is needed, who will carry
it out, and how much it will cost.
Prospect
Any logical source of support, whether individual, corporation,
organisation, government at all levels, or foundation; emphasis
on the logic of support.
Reserves
A reserve of money accumulated and kept by charities as
protection against the unexpected.
Quid Pro Quo
Something in exchange for something; in fundraising, the
process where a donor makes a gift in exchange for specified
privileges or services, with possible benefits of tax
deduction.
Quota
Percentage of a total fundraising goal assigned to a division
or other unit of the campaign organisation.
Share-giving
A mutually beneficial and tax-effective way to gift shares to
charity; it can reduce taxable income by the market value of
the shares given.
Statutory Grants
Generally refers to commitments of funds by government agencies
rather than those distributed by charities.
Steering Committee
In fundraising, an executive committee of top leadership that
bears overall responsibility for a fundraising campaign.
Third Sector
A term used to describe all not-for-profit organisations and
institutions. Also known as the voluntary sector.
Trust Funds
Money, securities, property held in trust by an agent of wealth
(bank, estate manager, solicitor) or managed by an institution
under trust agreement to produce income for the beneficiary.
Volunteering
The willingness of private individuals to serve voluntarily a
great variety of programmes and causes, both in fundraising
appeals and other capacities.
Year End Giving
The practice among many charitable organisations of seeking
gifts, usually via mail campaigns, in the last two or three
months of a calendar or financial year on the premise that
prospects will take last minute advantage of opportunities to
secure tax deductions.