Millions of readers look to Blackbaud every year for expert insights on recruiting new supporters, engaging existing donors, and achieving their mission goals. Some are nonprofit executives seeking strategic advice and thought leadership. Some are learning the ins and outs of the nonprofit world for the first time. Wherever you fall within that spectrum, you can improve your understanding of common terms in fundraising—even those confounding acronyms like CRM, ESG, and LYBUNT—with a little help from the experts at Blackbaud.

 

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A

Acknowledgment letter

Communication sent from an organization to a donor thanking them for their donation and stating how their donation will be used

Advance gift

A donation given or pledged to an organization before the start of a campaign

Advancement officer

An employee of an organization in charge of fundraising and building awareness and support; often called a development officer in higher education

Advisory board

A group of individuals that provides business advice and other support to an organization

Advocacy

The act of an organization educating the public on its mission and appealing to them for support; often used to refer to appealing to legislators in an effort to generate policy change in an organization’s favor

Affinity

How deeply a donor is connected to an organization’s cause and mission

Alumni fundraising

Tapping an organization’s base of graduates for donations

Annual giving

Gifts for general purposes, not designated for a specific fund or donations, received for daily operations, ongoing initiatives, and other needs throughout the year; usually held in an annual fund

Annual report

Yearly report on the state of an organization’s finances, mission and impact; often used to make a case for support

Appeal

An organization’s “elevator pitch,” a request for donations that explains the organization’s mission and how donations are used

 

B

bbcon

Annual conference for Blackbaud customers and users to learn more about Blackbaud software and industry best practices

B Corporation

A for-profit company that has gained certification that it is meeting high social and environmental standards

bbdevdays

Annual virtual developers’ conference that explores cutting edge, outside-the-box applications and uses of Blackbaud software, such as automation and extensibility

Benchmarking

Evaluating the state of one’s own organization by comparing your data and performance to similar organizations in your sector

Benefactor

Someone who makes a major gift to an organization; the minimum gift amount that qualifies a donor as a benefactor can vary depending on the organization

Bequest

A gift made as part of a donor’s will. Accounting for 9% of all charitable giving, bequests have an upside (supporters leave a legacy) and a downside (the gift arrives only after they die.)

Blackbaud Altru®

Software for cultural organizations (museums, zoos, etc.) to sell more admission tickets and convert more visitors into members, shoppers, and lifelong supporters

Blackbaud CRM™

Software for enterprise-scale nonprofit and higher education, designed to strengthen supporter engagement, boost fundraising, and expand capital campaign success

Blackbaud Financial Edge NXT®

Fund accounting software designed specifically for the complex financial and compliance needs of nonprofit organizations

Blackbaud Fundraiser Performance Management™

Fundraising software and strategy tools that allow teams to raise more money using custom predictive models and benchmarks specific to their industry

Blackbaud Luminate Online®

Advanced online marketing software that allows larger nonprofit organizations to execute an effective engagement and fundraising strategy, with integrated campaigns for digital, social, and mobile channels

Blackbaud Raiser’s Edge NXT®

A comprehensive digital constituent relationship management platform that streamlines fundraising, from marketing through post-campaign data analytics

Blackbaud TeamRaiser®

Fundraising platform for peer-to-peer events that makes participation easy and fun while reducing the overhead costs and event-day effort for the organization

Blackbaud University

Online and virtual training for Blackbaud software, including certifications and continuing education credits

Board fundraising

The act of board members contributing to the fundraising goals of their organization, both by making donations from their personal coffers and on behalf of their companies and by soliciting donations from other individuals and companies

Board of Directors

A group of experienced supporters that governs an organization by providing financial oversight, upholding policies, mitigating risk, and voting on important organizational matters; often referred to simply as “the board”

Building campaign

A campaign to raise money for brick-and-mortar construction or improvements

 

C

Call-to-action

A specific plea (often a clickable button on an email or social media post for an audience to take a certain action, such as give money or register for an event

Campaign

An organized effort to support a specific purpose, i.e. raising funds for an organization

Capital campaign

A large-scale drive to raise significant funding for a specific need of an organization, such as a new building; usually has a specific time frame and dollar goal

Certified Fund Raising Executive (CFRE)

A voluntary credential that professional fundraisers can earn from CFRE International to signify their expertise; Blackbaud University training qualifies for CFRE credits

Challenge gift

A donation that creates an incentive for others to give; a common example of this would be a matching gift, where the major donor’s contribution amount depends on the donations collected from others

Charitable deduction

The value of a donor’s gift to a 501(c(3) organization that can be deducted from their taxable income

Charitable lead trust (CLT)

A trust designed to support an organization for a certain number of years and then will be returned to the donor:

• A donor makes a contribution to fund the trust

• The trust pays the charity a predetermined amount on a schedule for a specific amount of time

• The remaining assets in the trust either return to the donor or go to a designated beneficiary (such as a family member) at the end of the trust’s term

Charitable remainder trust

A trust that provides a tax deduction and potential income stream for the donor and is then donated to charity:

• A donor makes a contribution to fund the trust

• That trust allows for an income-tax deduction and potential income for the donor (depending on what assets are used to fund the trust)

• The remaining assets are donated to a charity or charities (chosen by the donor) when the trust term ends

Code of conduct

A set of rules that outlines how board members should act as representatives of an organization

Community foundation

A public charity that supports nonprofits in the geographical area that it serves; foundations exist not to provide a direct service but to provide funding to other nonprofits, usually by awarding grants

Consent agenda

Clustering several routine, non-controversial items together on a board meeting agenda to be approved with one vote in an effort to streamline the meeting

Constituent

Anyone who has a relationship with an organization: donor, client, member, volunteer, supporter, beneficiary, etc.

Corporate foundation

The charitable arm of a for-profit company that handles corporate giving

Corporate giving

Donations from a company to a nonprofit organization, usually in exchange for public recognition, tickets to fundraising events, and other perks

Cost per dollar raised (CDR)

How much money an organization makes in relation to how much money it costs to make it:

• Divide the total expense of a campaign (include everything from administrative/staffing costs to marketing) by the revenue generated from the campaign

Crisis donor

Someone who donates to an organization following an emergency or disaster; for example, a nonprofit that supports people in Haiti would gain many crisis donors following an earthquake or hurricane on the island

CRM (Constituent Relationship Management)

A digital platform an organization uses to manage data for and interactions with constituents (donors, members, etc.), such as Blackbaud CRM and Raiser’s Edge NXT

Crowdfunding

Raising money by tapping a massive pool of prospects for very little cost, often through social media or email

Cultivation

Engaging with existing donors to make their donations either continue or increase

 

D

D&O (Directors and Officers) insurance

Insurance that protects board members and top company administrators from being held personally liable for actions made by the board

Designated gift

A donation made to an organization with the stipulation that it must be used for a specific purpose

Development officer

A staff person in charge of fundraising for an organization

Direct mail

A mass paper mailing sent via postal service in an effort to solicit donations and build community support and brand awareness

Disclosure document

A form that board members must fill out each year divulging any relationships they have that could create conflicts of interest in their capacity as board members

Donation

A gift made to a charitable organization, usually money, but can also be services, stocks, property, or goods, such as toys or delivery vans

Donor

An individual or organization who gives money or other valuable assets to a cause

Donor acknowledgment

A way of thanking donors for their gifts; usually comes in the form of a letter, either paper or electronic, that also serves as a tax receipt for their charitable donation

Donor acquisition

Identifying and securing new donors through marketing, events, and networking

Donor affinity

How deeply a donor is connected to an organization’s cause and mission

Donor appreciation

Expressing gratitude for those who have made donations to an organization, usually expressed publicly through social media and recognition at events

DonorCentrics®

Blackbaud software that helps organizations use collaborative benchmarking to identify the drivers affecting their fundraising performance

Donor conversion

The act of an organization succeeding in getting someone with whom it engages to donate; for example, on an organization’s website when a visitor makes a gift; or when an event participant joins your sustainer program

Donor engagement

Connecting with donors to ensure their continued support

Donor fatigue

Existing donors decreasing or stopping their support of an organization, usually due to an over-tapping of the same group of donors too often or too heavily

Donor impact

How much an organization received from donors and what the organization accomplished with the donations

Donor lifetime value

How much a donor is expected to give to an organization throughout their lifetime as a donor. It is calculated by multiplying the average annual donation of that donor by the average number of years similar donors continue to give to the organization.

Donor pipeline

A list of potential and current donors in various stages of engagement, from first contact to final gift

Donor relationship management

An organization’s communications with donors that includes acknowledgments, information, updates, etc.

Donor retention

Ensuring that existing donors continue to donate

Donor solicitation

Searching for, marketing to, and acquiring new donors

Donor stewardship

Nurturing and maintaining relationships with donors to encourage ongoing support

Donor-advised fund (DAF)

A tax-deductible donation that earns interest. Here’s how it works:

• A donor establishes and funds an investment account dedicated to a certain charity (donor can never get the money back once it is invested into this account) and receives an immediate tax deduction on the funds donated
• Donor and the charity decide how to invest this account
• The chosen charity receives long-term benefits from the earnings on this account

Due diligence

The expectation of board members to follow sound judgment when making decisions for an organization

Duty of care

The requirement of board members to be aware of an organization’s activities and take part in decision-making with ordinary care and sensibility

Duty of loyalty

The requirement of board members to be loyal to an organization and steer clear of conflicts of interest

Duty of obedience

The requirement of board members to obey the purpose of the organization and respect the organization’s regulations

 

E

Employee giving

Donations made by employees of a company to a charity – can be encouraged by employers through gift-matching programs

End-of-Year fundraising (EOY)

A campaign at the end of the year, taking advantage of the increase in people’s giving spirit around the holidays

Endowment

An investment fund whose earnings support an organization; the specific purpose for which the organization may use the earnings can be restricted based on stipulations put in place by the donor(s)

ESG (Environmental, Social, & Governance)

A set of standards upheld and publicized by a nonprofit organization to demonstrate its commitment to larger societal issues

Excise tax

A tax the IRS imposes on nonprofits for specific liabilities, such as parachute payments

Executive committee

Leadership group within the board of directors that has special powers to make certain decisions when a full board vote is not needed or able to be taken

Executive Leadership Team (ELT)

Group of highest-level employees with the most power at an organization

Executive session

A confidential meeting to which only board members, executive committee members, or other
specific individuals are invited

Ex officio

Someone who is a member of a board because of their office or position, as opposed to having been voted or appointed (an example might be an Executive Director or President of an organization if that organization’s bylaws state that that specific position should serve on the board)

 

F

Fair market value (FMV)

The price something would be on the open market – used in the nonprofit world to determine the tax deductible amount of non-monetary donations

Family foundation

A foundation (see Philanthropic foundation) that is funded by members of a single family. Family members often choose to decide which organizations and causes to support with their foundation.

Fiduciary duty

The requirement for board members to make decisions on behalf of the organization that are fiscally responsible for the organization and the community

Form 990/Form 990-PF

A form submitted to the IRS each year detailing an organization’s financial and operational information, board member names, and highest paid employees. Form 990-PFs are specifically for private foundations.

Fund accounting

Specialized accounting method that focuses on the allocation, management, and reporting of funds that carry a donor or government agency restriction that obligates the organization to use these funds as directed

Funding cycle

The timeline from receiving applications for funding, reviewing applications, and notifying applicants of their approval or denial. Some organizations have set timeframes for this, while others accept applications year-round.

Fundraiser

This can refer to either a person who raises money for an organization or an event whose goal is to raise money for an organization

Fundraising consultant

An expert fundraiser (person) who leads an organization through the process of raising money

Fundraising metrics

Key outcomes that organizations measure to track their fundraising success

 

G

Gift

Donation (can be money or another asset that has value)

Gift annuity

An agreement that provides a donor a fixed income stream for life in exchange for a sizeable donation

Gift officer

An employee who oversees the fundraising efforts and processes of an organization

Gift range

A way of categorizing donations in terms of size. Gift ranges are often charted before a campaign to show expected or needed quantities of donations in each size in order to hit fundraising goals.

Gift renewal

A repeat donation

Good Move™

Activity-tracking mobile app (included with TeamRaiser) for events-based fundraising, such as marathons, read-a-thons, and pickleball tournaments

Governance

The authority of a board to make decisions that affect an organization’s operations and the accountability for the result of the decisions

Governance committee

A group of individuals responsible for training board members and/or periodically reviewing an organization’s policies, procedures, or bylaws

Grant

Funds that nonprofit organizations can apply for from a foundation, corporation, or government agency

Grant management

Process of overseeing all activities related to grants, from identifying recipients to awarding funds, from reporting on outcomes to complying with regulatory requirements

Grantor

The organization that gives a grant

Grassroots fundraising

Raising money from individuals or groups from the local community served by an organization

 

H

House file

The names and contact information of an organization’s active and recently lapsed donors

 

I

Indemnification

Usually a clause in a nonprofit’s bylaws, this details how a nonprofit will protect its board members if they are sued for an action that they took in their board member capacity

In-kind contribution/gift

A non-financial donation to an organization that can be valued monetarily for a tax deduction

 

J

JustGiving® from Blackbaud®

Online fundraising platform for peer-to-peer, crowdfunding campaigns and events

 

L

Lapsed donor

Someone who used to give to an organization but no longer does

Leadership gift

Significant donations that anchor a capital campaign or accelerate a donor on their way up the pipeline and inspire additional donations by others

Legacy gift

A donation promised to an organization in someone’s will to be given after their death

Letter of inquiry

A letter detailing a project for which an organization needs funding that the organization sends to a potential funder

Letter of intent

A less formal, non-binding agreement of future giving for donors who refuse to sign a traditional pledge card

LYBUNT

Donors who gave “Last Year But Unfortunately Not This” (year); these are great people to re-engage when seeking donations

 

M

Major gift

A significant donation, the amount varying depending on the size and nature of the organization

Major gift officer

Fundraiser in charge of acquiring new high-level donors and sustaining current major gift donors

Making the ask

Asking potential donors to give or current donors to give more

Matching gift

A donation made with the knowledge that it will be matched by an organization or another individual, either one-to-one or with another pre-determined formula, or the equal donation made by the organization or individual who promised to match

Membership program

A program where individuals receive benefits in exchange for paying dues

Memorial gift

A donation made in memory of someone who has passed away

Midlevel donor

A donor who supports an organization just below the “major donor” category; midlevel donors make up a small percentage of donors who are responsible for a significant amount of overall giving

Mission

The purpose for which an organization exists

Monthly gift

Recurring donation made on a monthly basis

 

N

Non-governmental organization (NGO)

A nonprofit organization operating outside of the government

Nonprofit marketing

The use of strategic methods to promote an organization’s mission and secure funding

Nonprofit organization

An organization deemed by the IRS to be for public benefit whose mission is not to bring profit to its members

Nonprofit partnership

A mutually beneficial relationship between a private and nonprofit organization made to achieve a shared goal

 

O

Officer

A leadership position that has specific responsibilities within an organization

Offline giving

Making a donation directly to a nonprofit organization by direct bank transfer, cash, or check

Onboarding

The process of orienting someone (employee, board member, etc.) to an organization, educating them on the organization’s mission and operations, and training them to succeed in their role

One-time gift

A donation made to an organization without a recurring schedule in place

Online giving

Making a gift on a digital platform, through an organization’s website, mobile app, email, text-to-give, peer-to-peer campaigns, and crowdfunding

 

P

Peer-to-peer fundraising (P2P)

Fundraising that empowers individuals to create their own campaigns to collect donations from their personal networks – “social fundraising” – through social media, direct online communication, and word of mouth

Philanthropic foundation

A trust or corporation created to financially support charities; can be funded by individuals (single or groups), corporations, and families. Charities often have to apply for grants to receive funding from them.

Planned gift

Donation made while someone is still alive but not actually given to the organization until the donor dies

Pledge

A promise of future donations to an organization. The donor usually sets the timeline and hen the pledge is made.

Post-grant evaluation

Follow-up made by a funding organization of a grant recipient to ensure the funds are being used in accordance with the terms of the grant

Principal gift

Very large donation of either funds or other assets, such as property, that significantly supports an organization

Private foundation

A 501(c)(3) that exists to give grants to other charities as opposed to having its own programming, earns income through investments, and was originally funded from a single source

Program officer

Employee of an organization who oversees the operations and budgetary needs of an organization’s programs

Proposal

Application for a grant or other funding that details what the funds will be used for, who from the organization will oversee the use of the funds, and how much is being requested for the specific project or program

Prospect

Potential donor, supporter, or member

Public foundation

See Community foundation

 

R

Recurring gift

Donation made by an individual or an organization on a regular basis, often an automatic monthly gift

Renewal

A member or supporter agreeing to continue their membership or support

Restricted fund

A fund where both the invested money and the income must be invested and spent in specific ways, as specified by the donor

Restricted gift

A donation to an organization that must be used for a specific purpose, as specified by the donor

Retreat (board meeting)

A gathering of board members that is usually longer and has a different purpose and format than a regular board meeting. Board retreats often contain components of self-assessment, team building, and strategic planning for the organization.

Return on investment (ROI)

How much is earned from a campaign, event, or program in relation to how much it cost to complete

Season of Giving

The time of year when donors are more likely to donate to charities. The Season of Giving for most organizations is at the end of the year when the holidays have people in a generous mood.

Secretary

An elected or appointed position on a nonprofit board or executive committee who is usually responsible for handling administrative tasks such as distributing agendas, taking minutes, and performing other communication-related activities

Seed money

Substantial funds given to start an organization, program, or project

Segmentation

Grouping supporters based on certain characteristics, such as age, donation history, etc. This can help an organization create more personalized appeals that will resonate more with its supporters.

Site visit

Meeting an organization at its location. Donors might request a site visit of a charity to learn more about the organization and understand where their potential donations would be going.

Stewardship

The practice of an organization ethically and responsibly using the funds it receives (see also Donor Stewardship)

Sunshine Laws

State laws that require government organizations and publicly funded nonprofit organizations to make at least some of their board meetings open to the public

Sustainable/Sustainer giving

Regular giving from supporters who have committed to donating to an organization long-term

SYBUNT

Donors who gave “Some Year But Unfortunately Not This” (year); these are good people to re-engage when seeking donations

 

T

Target ask amount

The size of donation an organization realistically should ask someone to contribute. Target ask amounts can be established by analyzing data such donor history and giving trends of other donors with similar demographics.

Tax-deductible donation

A gift made to a 501(c)(3) nonprofit organization that can be partially deducted from the donor’s taxable income

Term limit

Maximum number of terms someone can serve as a board member

Third Sector

The business sector that includes nonprofit organizations

Transaction fee

A charge an organization has to pay each time it receives a payment

Transformational gift

A donation that underwrites a specific initiative that an organization either currently carries out or will be able to implement with the funds. Transformational gifts have the power to do just that – transform the organization and significantly increase the impact or change the trajectory of an organization.

Tribute gift

A donation made in honor or in memory of someone or something

Triple bottom line

A framework that measures a business’s success in the areas of people (social, profit (financial, and
planet (environmental)

Trust

A monetary, legal relationship where one individual owns property and promises to keep or use that property to benefit another person or organization

Trustee

A person or organization who owns a trust and promises to administer the agreed upon profits to the beneficiary; OR someone appointed to preside over an organization, usually holding more power than a director or board member

 

U

Unrestricted gifts

Donations made without stipulations as to how the organization may use them

V

Virtual event

An event that takes place online as opposed to in-person

Volunteer

Someone who donates their time to help an organization

 

W

Wealth screening

The process of an organization learning more about its donors’ assets to assess their giving capacity

 

#

#DayofGiving

A one-day, omnichannel campaign to raise funds, build brand awareness, and increase community engagement. The idea is to create a sense of urgency in a one-day-only campaign to increase excitement and incite action.

#GivingDay

See #DayofGiving

#GivingTuesday

A national day of giving observed by nonprofits throughout the United States; takes place the Tuesday after Thanksgiving

501(c)(3)

Charitable, tax-exempt organizations, as defined by the IRS

509(a)

A charity supported by either the public or the government, designated as a type of 501(c)(3) by the IRS