GLOSSARY OF DEVELOPMENT TERMS

acknowledge v.t. to express gratitude for (a gift or service) in written or oral form, communicated privately or publicly.

acknowledgement form n. standardized form used to acknowledge a contribution.

acknowledgement letter n. type of correspondence used to thank and acknowledge a contribution.

acquisition n. the process or act of acquiring new donors.

active phase n. the period of public solicitation during a campaign that usually follows the successful completion of a campaign's nucleus fund and the establishment of a pattern of giving. This phase consists of solicitation activity in contrast to campaign planning. Also intensive phase.

advance gift n. a donation, often from a trustee or director of an organization, that demonstrates a commitment to a campaign and provides momentum at the outset before external solicitations are undertaken. Also initial gift; nucleus gift; strategic gift.

advisory board n. a group of usually influential and knowledgeable people that offers counsel and prestige to the organization or cause with which it is associated, but that usually does not have any fiscal or policy authority.

advisory committee see advisory board.

analyze v. to make an analysis of, such as fund-raising data.

annual giving n. 1. an amount given annually; 2. a fundraising program that generates gift support on an annual basis. Also (Austr.) budget fund raising.

Annual report n. a yearly report of the financial and program status of an organization or institution.

anonymous gift n. a gift that is not publicly attributed to the donor.

appreciated security n. a security with a market value greater than its original tax basis.

back up v.t. to copy (information) form the hard drive of a computer to either a floppy disk or a tape drive.

backup n. 1. the procedure for making security copies of computer data; for example, from a hard drive to either a floppy disk or a tape drive; 2. the disk, tape, or information copied.

benefactor n. a generous donor, usually at the highest gift level.

benefit n. 1. something of value; 2. a social event from which net proceeds are designated as a donation one or more causes.

bequest n. 1. the act of bequeathing; 2. something bequeathed. Also legacy.

bequest donor n. a donor who makes arrangement to give or leave a donation through will or trust.

board n. 1. governing board; 2. an advisory board; 3. in printing, material that is camera ready (also mechanical).

board member n. one who serves on a governing or advisory board.

Board of Trustees n. another name for a governing board.

bricks and mortar campaign n. (informal) a capital campaign to meet the financial needs for constructing a physical plant, including facilities and furnishings.

briefing n. a formal or informal report prior to or subsequent to an event or situation that prepares a participant or that reports or relates the outcome.

brochure n. a printed pamphlet or booklet used to promote an organization and/or its programs.

campaign analysis n. a report on the results and effectiveness of a campaign. The report may include a quantitative and qualitative review of income and expense, number and size of gifts, and other considerations. See evaluation.

campaign brochure n. a summary statement most often accompanied by a pictorial depiction of an organization's case-the relevance of its mission, the urgency and legitimacy of its needs, and the compelling reasons for campaign goals.

campaign chair n. the overall volunteer leader of a campaign organization who is in charge of all volunteer forces.

campaign director n. a fundraising executive, from either a consulting firm or an organization's staff, who is assigned to direct a campaign.

campaign management n. the administration and implementation by appointed staff of the overall operations of a campaign.

campaign staff n. paid personnel who perform clerical, research, record keeping, and other coordination and support functions essential to campaign operations under the supervision of the campaign director.

capital campaign n. an intensive fundraising effort to meet a specific financial goal within a specified period of time.

case statement n. a presentation that sets forth a case.

cash gift n. a contribution made by writing a check

cause-related marketing n. marketing in which a for-profit organization, by using the name of a not-for-profit organization, promotes its product and in return provides financial support to the organization according to a predetermined formula based on sales and purchases.

challenge gift n. a gift donated by a person made on condition that other gifts or grants will be obtained using some prescribed formula, usually within a specified period of time, with the objective of encouraging others to give.

challenge grant n. a challenge gift donated by an organization, corporation, or foundation.

charitable adj. 1. giving to those in need; 2. giving for benevolent purposes.

charitable deduction n. the portion of a gift to a qualified charity that is deductible from a person's or corporation's federal income tax, a person's gift tax, or a person's estate tax.

charity n. 1. that which is given in willingness to aid those in need; 2. a not-for-profit organization or institution that is active in humanitarian work and supported entirely or in part by gifts.

cold list n. a list of prospects that has not been previously tested.

cold prospect n. a potential donor that has never contributed to a particular organization.

community foundation n. a not-for-profit organization that receives funds and distributes them, or any income from them, for charitable purposes in a specific geographic area.

constituency n. people who have a reason to relate to or care about an organization. These people typically fall into customary groupings, such as faculty, alumni, medical staff, users, parents, donors, etc.

consultant n. a person with expertise in a specific field of knowledge who is engaged by a client to provide advice and services. A consultant usually does not directly solicit funds on behalf of the client.

consulting firm n. a company of fund-raising consultants.

contribution n. a gift or donation.

corporate foundation n. a private foundation, funded by a profit-making corporation, whose primary purpose is the distribution of grants according to established guidelines.

corporate-giving program n. 1. a grant-awarding program established and controlled by a profit-making corporation; 2. an organization's activities to solicit donations from a corporation.

corporate philanthropy n. support from corporations and corporate foundations through gifts of cash, equipment, supplies, and other contributions.

cost per dollar raised n. a measure of the productivity of a fund-raising program calculated by dividing the expenses incurred in raising the funds by the total dollars raised.

cost-benefit guidelines n. a formula or set of parameters used to evaluate the cost effectiveness of a fund-raising program.

cultivate v.t. to engage and maintain the interest and involvement of a donor, prospective donor, or volunteer with an organization's people, programs, and plans.

cultivation event n. a special event (such as a dinner, meeting, or similar affair) to enhance interest in and enthusiasm for the work or an organization.

dashboard n. a software program that provides real time data in easy-to-read graphics. Named for the instrument panel in a car, it provides a general overview of achievements vs. goals.

database n. indexed information held in computer storage, from which a computer user can summon selected materials. In a database, data are organized so that various programs can access and update information.

deferred gift n. a gift (such as a bequest, life insurance policy, charitable remainder trust, gift annuity, or pooled-income fund) that is committed to a charitable organization but is not available for use until some future time, usually the death of the donor.

demographics n. the study of the characteristics of human populations, such as size, growth, density, distribution, and vital statistics.

designated gift n. a gift, the use of which is designated by the donor. This gift is either a temporarily restricted gift or a permanently restricted gift.

development n. the total process by which an organization increases public understanding of its mission and acquires financial support for its programs.

development audit n. an objective evaluation, sometimes conducted by professional fundraising counsel, of an organization's internal development procedures and results.

direct mail n. 1. mass mail sent by a not-for-profit organization directly to prospects; 2. the soliciting by this method of donations, product sales, or subscription sales.

donor n. a person, organization, corporation, or foundation that makes a gift. Also contributor.

donor acquisition n. the process of identifying and acquiring new donors.

donor list n. a listing of donors who give to an organization.

donor pyramid n. a diagrammatic description of the hierarchy of donors by size of gifts. The diagram reflects that: as the size of donations increases, the number of donations decreases; as the number of years a donor is asked to renew increases, the number of donors decreases; as campaign sophistication progresses from annual giving to planned giving, the number of donors decreases; as donor involvement increases, the size of the donor's contribution increases and the response to campaign sophistication increases. Also pyramid of giving.

donor recognition n. the policy and practice of providing recognition to a donor, by a personal letter, a public expression of appreciation, a published list of donors, or in another appropriate way.

endowment n. a permanently restricted net asset, the principal of which is protected and the income from which may be spent and is controlled by either the donor's restrictions or the organization's governing board.

evaluation n. examination, judgment, appraisal, or estimate.

face-to-face solicitation n. the soliciting in person of a prospective donor. Also personal solicitation.

fact sheet n. a brief statement of an organization's purposes, programs, services, needs, plans, and other pertinent information prepared in summary form for use by volunteers involved in a campaign.

family foundation n. a type of private foundation.

feasibility study n. an objective survey, usually conducted by fund-raising counsel, of an organization's fund-raising potential. The study assesses the strength of the organization's case and the availability of its leaders, workers, and prospective donors. The written report includes the study findings, conclusions, and recommendations.

federated campaign n. a unified fund-raising program administered by a not-for-profit organization that distributes funds to similar agencies. The United Negro College Fund and United Way are examples of federated campaigns.

foundation n. an organization created from designated funds from which the income is distributed as grants to not-for-profit organizations or in some cases, to people.

fund raiser n. 1. a person, paid or volunteer, who plans, manages, or participates in raising assets and resources for an organization or cause; 2. an event conducted for the purpose of generating funds.

fundraising n. the raising of assets and resources from various sources for the support of an organization or a specific project.

fundraising counsel n. a person or firm contracted to provide service to not-for-profit organizations seeking advice, evaluation, or planning, for the purpose of fund raising. Also consulting firm; development counsel; professional counsel.

fundraising goals n. number of gifts, donors, and total dollars to be raised.

general gift n. 1. a gift derived from a general appeal; 2. a gift within the lower range of giving in a campaign.

general-purpose foundation n. an independent, private foundation that awards grants in many different fields of interest.

gift n., v.t. n. donation. v.t. to endow or present with a gift.

gift-acceptance policy n. the rules and regulations developed by a donee organization to determine which types of gifts should or should not be accepted.

gift-in-kind n. a gift of a service or a product rather than a cash or stock gift.

gift opportunities n. a list of campaign needs, usually within a range of donation levels, that are used in an appeal to the various special interests of prospective donors.

gift receipt n. an official acknowledgment, required by the Internal Revenue Service, issued to a donor by a recipient organization in response to a donation of (currently) $250 or more, requiring information naming the charity, the asset donated, and any benefits received by the donor in exchange for the gift.

gift table n. a projection of the number of gifts by size (in descending order: leadership gift, major gift, general gift) so as to achieve a particular fund-raising goal. Also gift range table.

grant n., v.t., n 1. a financial donation given to support a person, organization, project, or program. Most grants are awarded to not-for-profit organizations. 2. informal (incorrectly for) a grant proposal. v.t. to give or confer (such as the ownership or a right) by a formal act.

honorary chair n. a person of prominence or influence who agrees to lend his or her name to a campaign organization.

identification n. the first phase in the fund-raising process.

initial gift n. advance gift.

kick off v.t. to begin an official, public launching of (a campaign), usually at a special event to which major prospects have been invited and where major funds, committed or already in hand, are announced.

lapsed donor n. a donor who has contributed at any time prior to the current year, also referred to as PYBUNT or LYBUNT, Past/Last Year But Unfortunately Not This [Year, yet]

leadership gift n. a gift, donated at the beginning of a campaign, that is expected to set a standard for future giving.

life-income gift n. a gift arrangement by which a donor makes an irrevocable transfer of property to a charity while retaining an income interest to benefit the donor and any other beneficiary for life or a specified period or years, after which the remainder is distributed to the charity.

personal solicitation n. face-to-face solicitation.

philanthropy n. 1. love of humankind, usually expressed by an effort to enhance the well-being of humanity through personal acts of practical kindness or by financial support of a cause or causes, such as a charity (for example, the Red Cross), mutual aid or assistance (service clubs, youth groups), quality of life (arts, education, environment), and religion. 2. any effort to relieve human misery or suffering, improve the quality of life, encourage aid or assistance, or foster the preservation of values through gifts, service, or other voluntary activity, any and all of which are external to government involvement or marketplace exchange.

planned giving n. a systematic effort to identify and cultivate a person for the purpose of generating a major gift that is structured and that integrates sound personal, financial, and estate-planning concepts with the prospect's plans for lifetime or testamentary giving. A planned gift has tax implications and is often transmitted through a legal instrument, such as a will or a trust. Also gift planning or deferred giving.

planned giving committee n. a group of volunteers who assist an organization in planning, promoting, and implementing a planned giving program. Members usually include attorneys, accountants, insurance agents, certified financial planners, etc.

planning v.t., formulating a scheme or program for the accomplishment or attainment of a goal.

pledge n., v.t, n. la. a promise that is written, signed, and dated, to fulfill a commitment at some future time; specifically, a financial promise payable according to terms set by the donor. Such pledges may be legally enforceable, subject to state law. lb. the total amount of such a pledge. 2. a verbal pledge. v.t. to commit (a specified amount of money) as a pledge. Also promise to give.

pledge card n. a printed form used by a donor as a response to an appeal.

pooled-income fund n. a trust to which a donor transfers property and contributes irrevocably the remainder interest to a qualified charity, retaining a life-income interest for one or more beneficiaries. The transferred property is commingled (pooled) with gifts made by other donors, and each income beneficiary, the fund's trustee severs from the fund an amount equal to the value upon which the beneficiary's income interest was based and distributes that amount to the charity.

private foundation n. as designated by federal law, a foundation whose support is from a single source (usually a person, family, or company) and that makes grants to other not-for-profit organizations rather than operating its own programs. Its annual revenues are derived from earnings on investment assets rather than from donations. Private foundations are subject to more restrictive rules than public charities. Also family foundation.

private phase n. the phase of a campaign that precedes the public announcement of the campaign. The private phase is also called the "quiet phase," the "dark phase," and the "pre-public" phase.

private sector n. the area of a nation's economy and civic enterprise that is under private, rather than any governmental, control.

professional ethics n. standards of conduct to which members of a profession are expected to adhere.

program officer n. a staff member of a foundation who reviews grant proposals and makes recommendations for action.

progress report n. a report prepared periodically during a campaign for distribution to leaders and workers of the campaign organization as well as for the record.

proposal n. a written request or application for a gift, grant, or service.

prospect n., V.t. n. any potential donor whose linkages, giving ability, and interests have been confirmed. V.t. to identify (a prospect).

prospect list n. a listing of those individuals who are evaluated to be candidates for making contributions to an organization.

prospect profile n. a research report detailing the pertinent facts about a prospective donor, including basic demographic information, financial resources, past giving, linkages, interests, potential future giving, and such.

prospect research n. 1. the continuing search for pertinent information on prospects and donors; 2. identification of new individual, foundation, and corporate prospects.

prospecting n. the act of performing prospect research.

public charity n. as designated by federal law, a foundation that, during its most recent four fiscal periods, has received one-third of its support from donations from individuals, trusts, corporations, government agencies, or other not-for-profit organizations, provided no single donor gives two percent or more of the total support for the period. Normally the charity investment income. A public charity escapes the stringent rules that apply to a private foundation.

public sector n. the area of a nation's economy that is under governmental, rather than any private, control.

pyramid of gifts n. a reference to the distribution of gifts by size to a capital campaign within the context of the principle that larger gifts, although limited in number in relation to the total gifts received will account for a larger and disproportionate share of the total objective-the classic gift pattern for a campaign that, graphically represented, resembles a pyramid.

recurring gifts n. where donors commit to a donation amount that is paid regularly - most often monthly. Different from a pledge, a recurring gift has no predetermined end-date. When signing up for recurring gifts, donors give permission to charge their credit cards every month for a set amount or automatically withdraw set amounts from their bank accounts through electronic funds transfer technology.

rejection letter n. the term used to describe the letter sent by a funder when a gift request is turned down. This denial letter is sent by many funders to applicants explaining why the gifts the applicants requested were not made.

research n. the second phase in the fund-raising process.

restricted gift n. a former accounting term for a temporarily restricted gift or a permanently restricted gift.

return on investment (ROI) n. l. a measure of the efficiency of an organization or program, calculated as the ratio of net income received to the expended funds; 2. the monetary amount derived by this calculation.

screening and rating sessions n. volunteers and staff members gathering together to identify individuals they know from prepared lists of names and evaluate or rate each individual's ability to give at certain levels.

seed money n. an early gift by a donor used for launching a program, such as a campaign feasibility and planning study, thereby establishing credibility and momentum for the program.

segment v.t., n. v.t. to subdivide (such as donors or prospects) into smaller groups with similar characteristics. n. a segmented portion or group.

sequential giving n. a cardinal principle of capital campaign fundraising that gifts should be sought "from the top down," that is, the largest gifts in a gift range table should be sought at the outset of a campaign, followed sequentially by the search for lesser gifts.

solicit v., v.t. 1. to ask (a person or group) for a contribution of money, resources, a service, or opinion; 2. to request or appeal as for such a contribution. solicitation, n.

solicitor's kit n. a packet of materials to be used by volunteers when doing personal solicitations. The kit contains general information about the organization, the case for support, brochures about the organization, materials for making a gift such as pledge cards, and envelopes.

special event n. a function designed to attract and involve people in an organization or cause.

special gift n. a gift among the higher ranges of the gift range table.

special-purpose foundation n. a public foundation that focuses its grantmaking activities on one or a few special areas of interest.

sponsor v.t., n. v.t. 1. to endorse (an organization or cause). 2. to agree to assume the financial responsibility of (all or part of the cost of a special event or a special event or a special program or activity). n. a person or corporation that sponsors.

steering committee n. a committee of top volunteer leaders who oversee and manage a campaign or other fundraising effort. This committee is often composed of the chairmen of other working committees.

stewardship n. 1. a process whereby an organization seeks to be worthy of continued philanthropic support, including the acknowledgment of gifts, donor recognition, the honoring of donor intent, prudent investment of gifts, and the effective and efficient use of funds to further the mission of the organization; 2. the position or work of a steward.

strategic plan n. a program incorporating a strategy for achieving organizational goals and objectives within a specific time frame and with substantive support in the form of methods, priorities, and resources.

stretch gift n. 1. a donation that fulfills a donor's optimum capacity to give; 2. a gift that is larger than a donor originally intended to make.

suspect n. a possible source of support whose philanthropic interests appear to match those of a particular organization but whose linkages, giving ability, and interests have not yet been confirmed.

target n., v.t. n. 1. a specific objective in a fund-raising program or campaign; 2. a campaign goal; 3. a prospective donor. v.t. to identify, single out, or make as a target.
teaser copy n. the wording or phrase found printed on the carrier envelope of a direct mail fund-raising solicitation letter.

technology consultant n. a consultant who specializes in database management and computer technology.

telemarketing n. the raising of funds or the marketing of goods or services by volunteers or paid solicitors, using the telephone.

telethon n. a television program in which entertainment features are integrated with a fund-raising message that is broadcast over a television station. During the pro- gram viewers are asked to call and make pledges.

token gift n. a gift considerably below the capacity of the donor.

trust n. l. an arrangement establishing a fiduciary relationship in which a trustor conveys property to a trustee to hold and manage for the benefit of one or more beneficiaries. Trusts can be revocable or irrevocable; 2. something (such as property or financial securities) managed by a trustee for someone else's benefit. In the phrase in trust, in the care or possession of a trustee.

unrestricted funds n. those gifts that donors have not directed for a specific purpose.

unrestricted gift n. a gift made without any condition or designation.

upgrade v.t. n. 1. to increase or attempt to increase (the level of donor giving); 2. to reconfigure (a computer) to increase its computing power. n. 1. donor upgrade; 2. a new release of a brand of computer software, containing usually major changes.

volunteer v.t., n. v.t. to work without compensation in behalf of an organization, cause, benefit, etc. n. a person who volunteers. Also worker.

will n., v.t. n. a legally executed statement of a person's wishes about what is to be done with the person's property after his or her death. Also last will and testament. v.t. to give or dispose of by a will.

yardstick gifts n. large gifts obtained early in a campaign that can be held up as models to other potential major contributors-gifts against which other gifts can be measured.

year-end gift n. a gift made in the last two months of a calendar year.

Source: Portions of this glossary reprinted from The NSFRE Fund-Raising Dictionary, by John Wiley & sons, Inc., New York. Copyrights 1996 John Wiley & Sons. Reprinted by permission.

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