501(c)(3) is an organization whose earnings may not inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
501(c)(4) is an organization whose earnings may not insure to the benefit of any private shareholder or individual and that must be operated exclusively to promote social welfare.
501(c)(6) provides for the exemption of business leagues, chambers of commerce, real estate boards, boards of trade and professional football leagues, which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
501(c)(7) is an organization that is typically social and recreational clubs organized for pleasure, recreation, and other non-profitable purposes.
Advisory Boards are volunteer groups formed to give advice and support to a nonprofit's governing board or executive staff. Unlike a governing board, an advisory board does not have any formal legal responsibilities or decision-making authority.
Advisory Council is a body that provides non-binding strategic advice to the management of a corporation, organization, or foundation.
Advocacy Groups also known as interest groups, special interest groups, lobbying groups or pressure groups use various forms of advocacy to influence public opinion and policy. They play an important role in the development of political and social systems.
Agreement Policy is an understanding between entities to follow a specific course of conduct.
Anti-Harassment and Discrimination Policy commits to a respectful and inclusive environment and outlines procedures for addressing grievances.
Audit Committee is a subcommittee of the board that oversees the audit process, ensuring the accuracy and integrity of financial reports
BIPOC stands for Black, Indigenous, and People of Color.
Benchmarking and Analysis involve using salary surveys, job market analysis tools, and government databases to compare and stay updated on industry compensation standards.
Board Giving Commitment Form Outlines the expected financial contributions or fundraising commitments for each board member, ensuring clear expectations and accountability for supporting the nonprofit
Board Member Agreement details the responsibilities, expectations, and commitment required from each board member.
Board Member Orientation Checklist confirms that the board member has received and understood the necessary orientation materials and training
Board Roles and Responsibilities clarifies the specific duties and expectations for each board member.
Budgeting Policy outlines the process for creating, approving, and monitoring the annual budget, ensuring alignment with the organization’s strategic goals.
Cash Reserves is the amount of liquid assets available to cover short-term liabilities, reflecting the organization's financial stability and preparedness.
Charitable Trust is a trust that is not tax-exempt, all of the unexpired interests of which are devoted to one or more charitable purposes. A charitable trust is treated as a private foundation unless it meets the requirements for one of the exclusions that classify it as a public charity.
Code of Conduct/Ethics outlines the expected standards of behavior and ethical practices for board members.
Committee is a group within a nonprofit organization that focuses on specific areas of the organization’s operations, governance, or strategic initiatives.
Committee and Advisory Councils is a group of people appointed for a specific function, typically consisting of members of a larger group.
Confidentiality Agreement protects sensitive information and ensures board members maintain confidentiality.
Conflict of Interest Policy ensures transparency and integrity by requiring board members, staff, and volunteers to disclose and manage potential conflicts of interest, preventing financial decisions that could benefit personal interests over the organization's interests.
Constituent are individuals, groups, or communities that the organization serves or represents.
Cooperative Governance means that the three spheres of government should work together to provide citizens with a comprehensive package of services.
Corporate Giving Programs is a form of corporate philanthropy that facilitates charitable giving to nonprofit causes. Such programs are often driven by employee giving. In other words, the more employees contribute to philanthropic organizations, the more their company will donate.
Customer Relationship Management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information.
Debt-to-Asset Ratio is the proportion of total debt to total assets, indicating the organization's financial leverage and stability.
Directors and Officers (D&O) Insurance provides liability coverage for its board members and executives, protecting them against claims arising from their decisions and actions taken within the scope of their organizational roles.
Email Marketing Platform is like Mailchimp or Constant Contact are used to engage with supporters, track email campaign performance, and gather data on engagement rates and campaign success.
Endowment is a fund created by a nonprofit organization using donations that are invested to generate income.
Executive Committee includes the President, Vice President, Treasurer and Secretary and are responsible for overseeing board policies and ensuring good governance practices.
Executive Staff includes the Chief Executive Officer, Executive Director, Development Director, Program Director, Marketing Director, and Human Resource Director
Executive Staff/Senior Management includes the Chief Executive Officer, Executive Director, Development Director, Program Director, Marketing Director, and Human Resource Director
Expense Reimbursement Policy defines the criteria and procedures for reimbursing staff, board members, and volunteers for expenses incurred on behalf of the organization, ensuring consistency and accountability.
External Auditors are independent professionals who review the organization’s financial records to provide an objective assessment of its financial health and compliance.
Financial Controls Policy establishes procedures to safeguard assets, ensure accurate financial reporting, and prevent fraud, including segregation of duties and regular audits.
Financial Management is overseeing budgeting, accounting, financial reporting, and ensuring fiscal responsibility.
Financial Responsibility Acknowledgment confirms understanding and commitment to the organization's financial policies and oversight responsibilities.
Foundation primarily focuses on making grants to other organizations, institutions, or individuals for charitable, educational, religious, or other public benefit purposes.
Fundraising Board focuses on raising funds for the nonprofit, with members chosen for their financial contributions and networking abilities, responsible for organizing events, soliciting donations, connecting with donors, and developing fundraising strategies.
Fundraising Efficiency is the ratio of costs spent on fundraising activities to the revenue generated from those activities, reflecting the cost-effectiveness of fundraising efforts.
Gift Acceptance guides a nonprofit in the types of gifts it can accept and educates the staff and board about critical issues triggered by certain gifts.
Gift Agreements are completed and signed by each BOD member to prevent misunderstanding of financial expectations and goals of the organization.
Governance Boards provide strategic leadership to a nonprofit organization. It entails the functions of setting direction, making policy and strategy decisions, overseeing and monitoring organizational performance, and ensuring overall accountability.
Governance Committee typically oversees who serves on the board of directors, as well as playing a central role in the selection and compensation of executive-level roles in the organization.
Governance/Board Relations is working effectively with the board of directors to ensure good governance and accountability
Human Resource (HR) Advisor provides guidance on HR functions such as recruitment, employee relations, and compliance, ensuring HR policies align with the organization's mission and values while supporting staff development and strategic planning.
IRA Distributions refers to the withdrawal of funds from an individual's IRA, which can be directed to support a charitable organization.
Investment Policy outlines the parameters for investing government funds. It identifies the investment objectives, tolerance for risk, constraints on the investment portfolio, and how the investment program will be managed and monitored.
Job Descriptions can be written as a joint effort between supervisor and employee, but the supervisor must approve. A job description contains the following components: job title, job purpose, job duties and responsibilities, required qualifications, preferred qualifications, and working conditions.
Legacy Gifts are also known as planned gifts or bequests, are contributions that individuals commit to make to a nonprofit organization as part of their estate planning.
Meeting Attendance Policy outlines expectations for attendance and participation in board meetings and events.
Mission Statement is a short statement identifying why the organization exists, its overall goal, and the goal of its operations.
Municipality Fundraising involves financial support from local government entities through grants, donations, or sponsorships to support community-benefiting programs and initiatives.
Nonprofit Association is an unincorporated organization, other than one created by a trust, consisting of three or more members joined by mutual consent for a common, nonprofit purpose.
Online Aggregator is a client software or web application that compiles web content, such as organization information, reviews, and salaries in one location for easy viewing. Common examples include Glassdoor or Salary.com.
Operating Surplus/Deficit is the difference between total revenues and total expenses within a given period, indicating whether the organization is financially gaining or losing.
Patron Governance Boards are composed of people who have a great deal of personal wealth, or a lot of influence in the nonprofit's field. The primary duty of the board is fundraising.
Policy Boards are responsible for thoughtfully deliberate issues and policy proposals. They are responsible for being alert to the need for new or changed policy.
Professional Develoment and Networks involve engaging with professional associations and investing in courses, workshops, and certifications to share best practices, gain insights, and support employee growth and competitive compensation.
Program Development is designing, implementing, and evaluating programs that align with the nonprofit’s mission.
Program Expenses Ratio is the percentage of total expenses dedicated to program services compared to administrative and fundraising costs, showing the focus on mission-related activities.
Restricted Gifts a gift which limits - sometimes sharply - the organization's discretion in managing the gift.
Revenue Growth increase in total income from all sources over a specific period, indicating overall financial expansion.
Risk Management is identifying and mitigating risks to protect the organization's assets and reputation.
Service Organizations includes groups like Lions, Rotary, Kiwanis, United Way and The Salvation Army.
Shared Drive is a centralized digital storage space within the organization's network where documents, files, and resources can be stored, accessed, and shared by authorized staff and volunteers.
Spending Policy dictates how much of the value of their investment assets they intend to tap each year to fund operations, help pay for capital projects, and the like.
Staff Develoment process through which an organization enhances the skills, knowledge, and competencies of its employees through various training programs, workshops, mentoring, and professional growth opportunities.
Staff Retention Keep its employees and reduce turnover by fostering a positive work environment, offering competitive compensation, benefits, opportunities for professional development, and ensuring job satisfaction. Staff retention strategies aim to maintain a stable workforce, thereby minimizing recruitment and training costs and retaining valuable institutional knowledge.
Stakeholder includes beneficiaries, donors, volunteers, staff, board members, partner organizations, community members, and government agencies.
Stakeholder Engagement is building relationships with community members and partners.
Stock Gifts are contributions of securities, such as stocks, bonds, or mutual funds, from an individual or entity to a nonprofit organization.
Strategic Plan is the formal process an organization creates to accomplish their goals and objectives for the year. It's often a guiding document that is used to turn goals into actions.
Strategic Planning is developing long-term goals and strategies to fulfill the nonprofit's mission.
Surveys and Forms is like SurveyMonkey or Google Forms are used to collect feedback from program participants, volunteers, and donors, providing valuable data on program effectiveness and stakeholder satisfaction.
Technology and Software include compensation management platforms, cost of living calculator (COLA) tools, and pay equity audit services to manage, adjust, and ensure fair employee compensation.
Term Limit a fixed or limited period for which a director serves on the Board of Directors
Values Statement lists core principles that guide and direct the culture, creating a moral compass for decision-making and establishing a standard against which actions are assessed.
Variance Reports compares actual financial performance against budgeted expectations to highlight discrepancies, enabling informed decision-making and strategy adjustments and ensuring financial accountability.
Vision Statement is an inspirational statement expressing the idealistic, emotional aspirations of an organization.
Whistleblower Policy encourages the reporting of unethical or illegal activities and outlines protection for whistleblowers.
Working Board are for smaller or newer nonprofits, board members often handle day-to-day operations, including fundraising, program development, volunteer coordination, and administrative tasks, due to limited staff
