MOST COMMON FUNDRAISING TERMS IN NONPROFIT ORGANIZATIONS

The Top 10 Most Foreign Development Terms Defined:

1. A soft/verbal pledge is a verbal promise to make a gift. Most organizations don't record these pledges until a firm commitment is received, such as a signed pledge card.

2. Soft credit is a gift recognition given to a spouse, individual, or company not specifically on the account from which the donation was made. This is not a legal designation and does not affect how gifts are receipted. It is simply a way to make sure that Mrs. Jones gets equal recognition for the check her husband wrote, or a way to make sure the CEO or president of an organization gets equal recognition for the donation that his organization made.

3. Campaign feasibility is a study that evaluates the need of a project or the potential to reach the project’s goal. For example, a hospital might do a campaign feasibility study to determine if it will be able to raise enough money to build a new wing, or even if a new wing is needed at all — before the campaign is begun.

4. LYBUNT is an acronym that stands for “last year, but unfortunately not this year.” This is a term used frequently in the fundraising world to represent donors who gave your organization money last year but, who have not given you money yet this year. Fundraisers typically target this group of last-year's donors differently than people who haven't made a gift at all. A donor in this group is also sometimes referred to as a “low hanging fruit” or a “warm” donor since that individual could be expected to give a gift again.

5. SYBUNT is an acronym that stands for “some year, but unfortunately not this year.” Similar to LYBUNT, SYBUNT is also used frequently to represent donors who have given you money at some point in the past but, who have not given you money yet this year. Again, these donors are usually approached differently when solicited and are referred to as “warm” donors — donors that your organization hopes might be likely to give a gift again.

6. Moves Management® is a term that refers to the actions you take to bring in donors, forge relationships, and keep contributions coming, such as visiting prospects, creating gift proposals, soliciting individuals or organizations for donations, and cultivating and stewarding donors. Moves Management®, simply put, is the system of policies, procedures, and practices that directs these actions. An effective Moves Management® program will improve your bottom line and facilitate a number of internal processes.

7. A matching gift is a gift from a corporation that is conditional based upon the donation of a specific individual. Many companies have matching gift programs in which they offer to match an employee's donation to a qualified nonprofit organization.

8. Fund refers to a specific financial purpose of a gift, which could be very specific or very broad. Your organization may receive a donation earmarked for a specific scholarship fund, and that donation should be equated with the appropriate restricted fund on the accounting side.

9. Appeal refers to the specifically targeted "ask," or solicitation, that your fundraisers make. Your organization might have a capital campaign to raise money for a new science lab. The appeals for this campaign might include a phonathon, a gala, an email appeal, and a direct mail solicitation that all ask for money specifically for the new science lab.

10. A gift-in-kind is a non-cash donation (typically goods or services) that is used by an organization to carry out its mission. Gifts-in-kind may include items such as computers, software, clothing, food, equipment, furniture, books, and construction materials. Most organizations do not give full market value for gifts-in-kind. Instead, the organization might thank the donor for the specific gift and let him or her work directly with the IRS to establish the market value of the donated items.

Courtesy of Blackbaud Nonprofit Fiscal Fitness Newsletter
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