Domain 3: Key Terms & Concepts Flashcards
Relationship Building
Automated Clearing House (ACH)
An electronic funds-transfer system that facilitates payments. It can be a way for organizations to accept donations from supporters who wish to give via direct debit. The automated clearing house processes “batches” of transitions and deposits funds into the organization’s account.
Cause-Related Marketing
An agreement that links a social cause with a product or service, with sales being divided in an agreed upon portion between the company and the organization.
Corporate Philanthropy
Cash and in-kind gifts from a company to nonprofit organizations.
Communications Plan
A comprehensive framework for how messages will be delivered, who will deliver them, and how they will be crafted. A policy-driven approach to providing information to internal and external sources to increase awareness, donor engagement and recognition, strengthen the case for support, and manage crisis communications.
Development
All aspects that encompass a fundraising program, including marketing and public relations.
Donor Recognition
An organized policy and process of recognizing gifts. These include immediate acknowledgement, subsequent personal expressions of thanks, and other methods.
Donor Relations
Maintaining donor interest through organized communications, personal involvement, and acknowledgement.
Electronic Funds Transfer (EFT)
A direct debit (usually monthly) from the donor’s bank account to a nonprofit organization.
Gift Acknowledgement
The process of thanking and recognizing the donor for their gift. It is typically done with a written acknowledgement or email for a gift made online. Larger size gifts may warrant a more personal acknowledgement. Timely gift acknowledgement within a 48-hour recommended period of time is a key component in donor retention and repeat giving.
Giving Club
A segmented group of donors who give at regular intervals (monthly, yearly) and receive special communications, access, and recognition based on membership.
LYBUNTS
An acronym describing donors who made a gift “Last Year, But Not This” year.
Matching Gifts
A highly effective tool to encourage others to give. **Research has demonstrated that the likelihood of a gift increases 22 percent when a match is offered, and the revenue per solicitation increases 19 percent. **These may be matches offered by a donor or donors to the organization, a community foundation, or the organization itself.
Member Benefits
Organizations that have a membership program typically create specific and exclusive benefits for participants. Examples include special access or priority seating at events (subject to government limitations and guidelines), access to discounted services from partnering organizations, a membership card or car decal (alumni associations), name recognition in an annual report or member publication, donor wall, etc.
Naming Rights
An agreement which outlines the mutual understanding between a donor and the organization about how the donor or donor’s designee will be recognized and for how long with a named building, section of a building, program, event, position title, or other element. The agreement states the name to be used and other considerations.
Premiums
An item or items of value given with a solicitation or promised as a result of a gift. Examples include personalized mailing labels or tote bags. After a decline in popularity in association with direct mail, these are making a comeback with crowdfunding campaigns and often incentivize giving.
