Glossary
A–Z Glossary
Understanding nonprofit terminology is essential for strategic growth. Whether you’re a nonprofit leader, staff member, or consultant, this glossary will guide you through critical terms, from fundraising and grant writing to operations and donor engagement.
A
Annual Fund – Yearly fundraising campaign supporting operational costs.
Appeals – Targeted fundraising communications to donors.
Asset Development – Activities that build long-term resources, including fundraising, investments, and property.
B
Board Governance – Oversight responsibilities and leadership provided by a nonprofit board of directors.
Benchmarking – Comparing organizational performance against industry standards.
Benchmarking – Comparing organizational performance against industry standards.
C
Capital Campaign – A time-limited fundraising effort to finance a major project or capital expense.
Cause Marketing – Collaborative marketing between nonprofits and businesses to raise awareness and funds.
Compliance Reporting – Filing required documents to maintain nonprofit status, such as IRS Form 990.
Corporate Giving – Donations or sponsorships from companies to support nonprofits.
Capacity Building – Strengthening nonprofit systems, skills, and resources.
D
Data-Driven Fundraising – Using analytics to inform donor engagement and strategy.
Donor Acquisition – Methods for gaining new supporters.
Donor Retention – Strategies for maintaining ongoing donor relationships.
Donor Stewardship – Practices for nurturing relationships with donors to secure long-term support.
Diversified Revenue – Funding from multiple sources to reduce reliance on any single stream.
Endowment – A fund where the principal remains intact, generating income for ongoing support.
E
Engagement Metrics – Data measuring donor or supporter involvement, such as event attendance or email interactions.
Evaluation Metrics – Measures of program effectiveness and impact.
F
Foundation Grant – Funding provided by a private or public foundation.
Fundraising Plan – Strategic blueprint outlining how a nonprofit will secure revenue. Also known as a funding strategy.
Fiscal Sponsorship – A formal arrangement where a nonprofit allows a project to operate under its tax-exempt status
G
Grant Cycle – The schedule of a grant program, including application, review, and reporting periods.
Grant Retainer – Ongoing consulting for continuous grant strategy, writing, and reporting.
General Operating Support – Funds covering overall operational expenses rather than a specific project.
Goals vs Objectives – Goals are broad outcomes; objectives are specific, measurable steps to achieve them.
H
High-Impact Donor – A donor whose contributions significantly affect a nonprofit’s mission delivery.
Hybrid Fundraising – Combining multiple fundraising strategies, such as events, grants, and online campaigns.
K
Key Performance Indicators (KPIs) – Quantifiable metrics used to assess progress toward strategic goals.
L
Logic Model – A visual representation of how a nonprofit’s resources, activities, and outcomes are connected.
Legacy Giving / Planned Giving – Donations arranged to occur in the future, often as part of an estate plan.
M
Major Gift – A significant donation that can fund programs or strategic initiatives.
Mission Alignment – Ensuring programs and funding opportunities match the nonprofit’s core mission.
Monthly Giving Program – Recurring donation program to ensure predictable funding.
O
One-Off Grant – A single, non-recurring funding award
Operating Reserve – Funds set aside to cover short-term cash flow needs or emergencies.
P
Program Evaluation – Assessment of a program’s effectiveness, efficiency, and impact.
Proposal Narrative – Written section of a grant proposal explaining the problem, solution, and organizational capacity.
Public Support Test – IRS test to maintain 501(c)(3) public charity status.
R
Recurring Donations – Donations that occur on a regular schedule (monthly, quarterly).
Retention Rate – Percentage of donors retained year-over-year.
Restricted vs Unrestricted Funds – Restricted: funds for a specific purpose; unrestricted: funds for general operations.
Revenue Diversification – Same as “Diversified Revenue”; ensures financial stability.
S
Sustainable Grant Funding – Long-term funding that ensures financial stability, often multi-year or diversified.
Stewardship Plan – Strategy for maintaining donor engagement and recognition.
Strategic Plan – A roadmap for achieving organizational goals over a set period.
Social Return on Investment (SROI) – A measure of social impact relative to investment.
T
Target Audience – The specific group of supporters, donors, or clients a nonprofit seeks to reach.
Theory of Change – Framework explaining how and why a desired change is expected to happen.
Top-of-Funnel Content – Content designed to attract new supporters or donors.
Transparency Reporting – Public reporting on financials, programs, and outcomes to build trust.
V
Value Proposition – Clear explanation of the benefits a nonprofit provides to supporters or clients.
Vision Statement – A nonprofit’s aspirational long-term goal.
Volunteer Management – Recruiting, training, and retaining volunteers effectively.
W
Workflow – Using a strategy to streamline processes such as donor communications, reporting, or fundraising.
Write-to-Goal Method – Grant writing approach focused on measurable outcomes and objectives.
