Practice Exam Flash Cards
Vision Statement
The future-looking declaration of the organization’s intended destination
Donor Recognition
The creation and implementation of a system of recording and thanking givers that is accurate and timely
Memorial and Tribute gifts
Philanthropic donations made to an organization in honor of another person (typically deceased)
Volunteer Diversity
A value system in the recruiting process that demonstrates variety in viewpoints, ethnicity, gender, socioeconomic levels, age, etc
Volunteer Orientation
The process of acclimating new people to the organization, its culture, and their roles and expectations
Legal Standards
Prevailing local and regional laws and rules that determine how gifts are solicited and used
Annual Report
The most common tool used to exhibit transparency and detail stewardship
Roles & Responsibilities of Board Members
An expectation to adhere to legal obligations, mission, stewardship of resources, and development
Direct Marketing
Physical materials such as letters, flyers, catalogs, etc. that are delivered via mail or physically given to prospects & donors
Governance
The process by which a nonprofit board provides strategic leadership through vision casting, policy setting, strategic planning, oversight and accountability
Response Rates
The percentage of recipients that proceeded to make a gift or take an action as a result of a physical mailing or telephone solicitation
Organizational Readiness
An assessment of a nonprofit’s level of resolve, capacity, and infrastructure necessary to accept and implement a significant change or project
Volunteer Retention Rate
The percentage of board members that remain engaged both during and after their terms end
Gift Instruments
The legal vehicles or agreement that define how and when a donation will be transferred and used
Ethical Fundraising
The sum total of applying transparency, accountability, and the Donor Bill of Rights to all aspects of fundraising
Demographics
The statistical data of a population, including age, income, education, political affiliation, marital and family status, etc.
Accountability
The process of opening oneself and the organization to scrutiny, voluntary external review, and feedback from stakeholders.
Performance Measurement
The routine assessment of outcomes and results for a program or individual employee in order to evaluate their impact and effectiveness.
Prospect
An individual 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.
Donor Qualifying
The ongoing process of assessing linkage, ability, and interest of your donors in order to match them with the right program, appeal, and amount.
Renewal Rates
The percentage of donors who make a subsequent gift to the organization.
Data Privacy
Maintaining secure digital records and fully disclosing any sharing of information with third party organizations upon the acceptance of an individual’s information.
Gift Agreements
A formal arrangement between a donor and the recipient which spells out the nature of the donation, how it is to be used, and how the donation will be acknowledged.
Professional Development
Ongoing fundraising training
Average Gift
A donor data point that is calculated by dividing the total dollars raised by the number of gifts given.
Solicitation History
A record of all donation requests made by the organization whether they are successful or not. It includes both mass appeals (email, direct mail, etc.) and in-person asks of any size.
Pledge & Installments
A commitment to a give a specific amount of money monthly, quarterly, or annually for a set number of months and/or years. While typically used in capital campaigns, it is also used in major gift fundraising and in the annual fund.
High Net Worth Volunteers
Individuals whose income and/or assets put them in a position to make substantial donations to an organization and are currently serving in some capacity.
Transparency
The process of allowing the public access to information that sheds light on an organization’s stewardship of gifts, program outcomes, and daily operations.
Cost of Fundraising
The sum total of expenses related to development efforts. These include salaries, payroll taxes and benefits, supplies, marketing and advertising, occupancy costs, and other expenses related to development.
Cost per Dollar Raised
A calculation of the expenses related to fundraising in proportion to the revenue produced.
Engagement
An ongoing effort to learn about your donors, communicate with them, and offer shared experiences (volunteering, events, etc.).
Data Integrity
The accuracy and consistency of stored statistical information.
Stewardship Plans
An organizational framework for how gifts will be used in accordance with donor wishes and how that use will be reported back to the donor.
Communications Plan
A comprehensive framework for how messages will be delivered, who will deliver them, and how they will be crafted.
Mission Statement
The articulation of the purpose of an organization, including who it serves, the implied community need, and how the organization meets that need.
Elements of a Fundraising Plan
Mission, goals, tactics, budget, and timeline.
Peer-to-Peer Fundraising
When an individual personally raises money directly from their friends, network or co-workers 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.
Case for Support
The collection of information that illustrates why an organization is worthy of support
Solicitation Plan
A specific and thoughtful strategy for meeting with and requesting a gift from an individual donor.
Gifts of Property
Any donation of real estate. Examples include homes, farmland, commercial property, and undeveloped land.
Acknowledgement
The process of thanking and recognizing an individual for their donation.
Capital Gift
A charitable contribution designated 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.
Professional Mentoring
The practice of advising or training a younger or less experienced colleague.
Data Mining
The process of collecting, researching, analyzing and segmenting information about donors, prospective donors, and volunteers.
Elements of an Effective Case
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.
Segmentation
The process of grouping donors and prospective donors into like categories in order to more efficiently allocate resources and target appeals.
Special Events
Any function designed to attract, involve, and inform people about a cause or organization.
Stewardship
The process of accepting and managing resources that have been entrusted to the organization through philanthropy.
Market Research
The process of accepting and managing resources that have been entrusted to the organization through philanthropy. The process of gathering, organizing, and interpreting data regarding donor and prospective donor preferences, attitudes, interests, and giving ability.
Frequency
How often a donor gives, and to which repeated appeals.
Giving History
The sum total of a donor’s giving records. This includes frequency, renewal rate, appeal responses, average gift, highest gift, most recent gift, etc.
Strategic Planning
A comprehensive process that identifies future goals and objectives that will position an organization to further its mission.
Feasibility Study
The formal process of determining both organizational readiness and potential constituency support of a capital campaign or project. These are typically performed by a third-party consultant or company that specializes in this area.
Gift Acceptance Policy
A best practice that establishes what types of donations your organization is willing to accept and provides an explanation for donors on what is acceptable.
Cultivation
A series of activities to maintain and deepen relationships and engagement with donors, prospective donors, and volunteers.
Corporate Sponsorships
The investment of either cash or in-kind goods or services by a business entity in return for access and recognition at an event or cause
Gifts in Kind
Donations of tangible goods and services as opposed to the funds to purchase those same goods or services.
Professional Standards
Accepted best practices and ethical codes of conduct of a sector.
Securities
A gift category that includes stocks, commodities, mutual funds, and bonds.
Donor Profile
A concise record of an individual’s linkage, ability, and interest in an organization. It contains verified contact info, giving history, and wealth indicators
Advisory Board
A group that provides some level of oversight and guidance to an nonprofit organization but lacks the legal fiduciary obligations of a governing body.
Ability
An assessment of the financial capacity, stage of life, and the liquidy of a donor’s assets
Annual Report
A review of the revenue, expenditures, program results and general state of the organization over the previous 12 months
Cause Marketing
When a company provides dollars to a nonprofit organization in direct proportion to the number of individual purchases of the company’s product or services during a defined peroid of time
Donor Intent
The expectation of how a gift will be used and what outcomes may be expected from the use of the gift
Interest
The combination of concern, excitement, motivation, and engagement an individual has for your organization’s mission
Linkage
The connections a donor or prospect has to your organization and/or its mission. Ex: experience (former alum, program participant), connections with people (friend, relative, colleaguge), shared values (advocacy, stage of life) and personal history.
Naming Rights
An agreement which outlines the mutual understanding between an organization and a donor or business which outlines the branding to be placed on a building, program, or event and other special considerations in exchange for a major gift
Payroll giving
A system where pretax deductions are made from an employees paycheck and donated directly to a nonprofit
Premium
An item or items of value given with a solicitaion or promised as the result of a gift
Public Trust
An organization created for the benefit of the community or to meet societal needs
ROI
Amount of revenue generated for a given strategy divided by the expenses required to generate the revenue
Trusts
A legal vehicle in which one party gives a second party permission to manage assets for the benefit of an organization
