Domain 1: Key Terms & Concepts

Question 1

Ability

Answer 1

A donor’s ability to give is an assessment of their financial capacity, stage of life, and the liquidity of their assets. Ability is often mistakenly tied to perceived income, which may not always be an accurate indicator of ability to give.

Question 2

Cultivation

Answer 2

Cultivation is a series of activities to maintain and deepen relationships and engagement with donor, prospective donors, and volunteers.

Question 3

Data Mining

Answer 3

Data mining is the process of collecting, researching , analyzing, and segmenting information about donors, prospective donors, and volunteers.

Question 4

Data Privacy

Answer 4

Data privacy it the responsibility of the nonprofit organization to maintain secure digital records and to fully disclose any sharing of information with third-party organizations upon the acceptance of an individuals information.

Question 5

Demographics

Answer 5

Demographics refer to the statistical data of a population, including age, income, education, political affiliation, marital and family status, etc.

Question 6

Donor Profile

Answer 6

A donor profile is a concise record of an individual’s linkage, ability, and interest in an organization. It contains verified contact info, giving history, and wealth indicators.

Question 7

Donor Qualification

Answer 7

Qualifying is the ongoing process of assessing linkage, ability, and interest of your donors in order to match them with the right program, appeal, and amount.

Question 8

Donor Rating

Answer 8

Rating is the process by which current donors are evaluated by staff and volunteers (board members) for their capacity to make a gift of significance (major gift, planned gift, lead gift, etc.)

Question 9

Engagement

Answer 9

Two definitions for “engage” in the dictionary are “to attract and hold fast,” and “to occupy the attention or efforts of a person or persons.” For the nonprofit, engagement means an ongoing effort to learn about your donors, communicate with them, and offer shared experiences (volunteering, events, etc.).

Question 10

Frequency

Answer 10

Frequency refers to how often a donor gives, and to which repeated appeals.

Question 11

Giving History

Answer 11

A donor’s giving history is the sum total of a donor’s giving record. This includes frequency, renewal rate, appeal responses, average gift, highest gift, most recent gift, etc.

Question 12

Interest

Answer 12

A donor or prospective donor’s level of interest correlates to their likelihood of making a gift. Interest, from the nonprofit viewpoint, is the combination of concern, excitement, motivation, and engagement an individual has for your organization’s mission.

Question 13

Lifetime Donor Value

Answer 13

The lifetime projected value of a donor is an estimate of total current and future contributions to your organization. It is typically determined by multiplying lifespan times average donation amount times frequency of donation. Value = Lifespan x Amount x Frequency.

Question 14

Linkage

Answer 14

Linkage refers to the connections a donor or prospective donor has to your organization and/or its mission. These could be in the form of experience (former alum, program participant), connections with people (friend, relative, colleagues), shared values (advocacy, stage of life), and personal history.

Question 15

Market Research

Answer 15

Market research refers to the process of gathering, organizing, and interpreting data regarding donor and prospective donor preferences, attitudes, interests, and giving ability.

Question 16

Prospect

Answer 16

A prospect or prospective donor is one who has been evaluated based on donor research and found to have a connection to the organization, the ability to give an appropriate level, and an interest in the organization’s mission.

Question 17

Renewal Rates

Answer 17

An organization’s renewal rate is the percentage of donors who make a subsequent gift to the organization. Often tracked to a specific appeal or tracked to giving in general. Renewal rates are often a reflection of how well the organization thanks its donors and keeps them informed of how gifts are used. Also known as attrition rates.

Question 18

Segmentation

Answer 18

Segmentation is the process of grouping donors and prospective donors into like categories in order to more efficiently allocate resources and target appeals. Donors can be segmented by giving levels, giving history, program interest, likely response format (example: email vs mail appeal), and other groups.

Question 19

Solicitation History

Answer 19

The solicitation history of a donor is a record of all donation requests made by the organization whether they are successful or not. It includes both mass appeals and in-person asks of any size. An accurate solicitation history allows the organization to make informed decisions about resource allocation and subsequent requests.