Domain 2: Key Terms & Concepts

Question 1

Average Gift

Answer 1

Average gift it calculated by dividing the total money raised by the number of gifts given.

Question 2

Capital Campaign

Answer 2

A structured fundraising effort (outside of the annual campaign) to secure significant gifts and pledges during a defined timeframe for unique purposes such as buildings, endowments, or equipment.

Question 3

Capital Gift

Answer 3

A charitable contribution designed or intended for the purchase and/or construction of a new building or property, or the improvement and/or renovation of an existing building, property, or physical space.

Question 4

Case for Support

Answer 4

The collection of information that illustrates why an organization is worthy of support.

Question 5

Cause Marketing

Answer 5

When a company donates to an organization in an amount that correlates to the number of individual purchases of the company’s products or services during a defined period of time.

Question 6

Corporate Sponsorship

Answer 6

A gift of cash or in-kind goods or services by a corporate entity in return for access and recognition at an event or cause.

Question 7

Cost of Fundraising

Answer 7

The sum of expenses related to fundraising efforts. These include salaries, payroll taxes and benefits, supplies, marketing and advertising, occupancy costs, and other costs related to development.

Question 8

Cost Per Dollar Raised

Answer 8

Cost per dollar raised calculates the total cost to yield a single dollar of revenue. It is the inverse of ROI.

Question 9

Direct Marketing

Answer 9

Physical marketing materials such as letters, flyers, catalogs, etc.

Question 10

Elements of an Effective Case

Answer 10

A mission statement, goals, objectives, description of programs and services, finances, governance structure, staffing and organization chart, facilities and service delivery description, planning and evaluation, and organizational history.

Question 11

Endowment Gift

Answer 11

Gift of cash, investment funds, or property to an organization for the purpose of investing the principal while using the dividends or other resulting investment income for charitable purposes.

Question 12

Feasibility Study

Answer 12

The formal process of determining both organizational readiness and potential constituency support for a capital campaign or project. Typically performed by a third-party consultant or company that specializes in this area.

Question 13

Gift Agreement

Answer 13

A formal arrangement between a donor and the recipient which spells out the nature of the gift, how it is to be used, and how the gift will be acknowledged.

Question 14

Gifts In-Kind

Answer 14

Gifts of tangible goods or services as opposed to gifts of funds to purchase goods or services.

Question 15

Gift of Property

Answer 15

A gift of property includes any gift of real estate (homes, farmland, commercial property, undeveloped land).

Question 16

Grant Proposal Writing

Answer 16

Process of responding to a request for proposal (RFP) from a foundation, corporation, or government agency. Grant proposals follow a specified format established by the funding organization and typically include organizational information, a case statement, program information, budget, projected outcomes, and an evaluation process. May also refer to proposals submitted in the absence of an RFP but when the funding agency’s stated goals align with the applicant organization’s and the agency accepts unsolicited proposals.

Question 17

Lead Gift

Answer 17

A significant donation (10% of the goal of a capital campaign or annual fund) that establishes the campaign and sets a benchmark for others capable of giving at a similar level.

Question 18

Memorial and Tribute Gifts

Answer 18

Philanthropic gifts made to an organization in honour of another person (typically deceased for memorial gifts; typically living for tribute gifts).

Question 19

Nucleus Gift

Answer 19

A major gift given in the initial stages of a campaign, typically at the start of a campaign.

Question 20

Payroll Giving

Answer 20

A system where pre-tax deductions are made from an employee’s paycheck and given directly to a nonprofit organization.

Question 21

Peer-to-Peer Fundraising

Answer 21

When an individual personally fundraises directly from their friends, network, or peer group for a specific organization or cause. The organization may control the payment platform and/or support for the messaging; however, the individual controls when, where, and to whom the messages are delivered.

Question 22

Pledge and Installments

Answer 22

A pledge to give a specific amount of money monthly, quarterly, or annually for a set number of months and/or years. While typically used in

Question 23

Response Rate

Answer 23

Refers to the percentage of recipients who received a piece of physical mail, an email, or a telephone call who responded with a gift or by taking another action requested be the organization, such as signing up for an event or asking for more information about legacy giving.

Question 24

ROI

Answer 24

Return on Investment or the amount of revenue generated for a given strategy divided by the expenses required to generate that revenue. This is the inverse of Cost Per Dollar Raised.

Question 25

Securities

Answer 25

Includes stocks, commodities, mutual funds, and bonds.

Question 26

Solicitation Plan

Answer 26

A specific and thoughtful plan for meeting with and soliciting a gift from an individual donor. The plan can include who will accompany the gift officer, who will speak when, what support or collateral materials will be included, what objections may be expected and how to address them, and what follow-up activities will take place. Solicitation materials should be specific and tailored to the potential donor.

Question 27

Special Events

Answer 27

In a fundraising context, a special event is any function designed to attract, involve, and inform people about a cause or organization.

Question 28

Trust

Answer 28

A legal vehicle in which one party (trustor) gives a second party (trustee) permission to manage assets for the benefit of an organization. These come in a variety of forms including living (while the trustor is still alive), testamentary (enacted upon death), revocable (can be modified), and irrevocable (cannot be modified or terminated).

Question 29

Ultimate Gift

Answer 29

The largest single gift given by a donor.