GLOSSARY
OF TERMS
Contents
A ................................................................................................................................ 3
B ................................................................................................................................ 5
C................................................................................................................................ 5
D................................................................................................................................ 9
E .............................................................................................................................. 11
F .............................................................................................................................. 12
G ............................................................................................................................. 13
H.............................................................................................................................. 14
I ............................................................................................................................... 14
J .............................................................................................................................. 15
K .............................................................................................................................. 15
L .............................................................................................................................. 15
M ............................................................................................................................. 15
N.............................................................................................................................. 16
O ............................................................................................................................. 16
P .............................................................................................................................. 16
Q ............................................................................................................................. 19
R.............................................................................................................................. 19
S .............................................................................................................................. 20
T .............................................................................................................................. 22
U.............................................................................................................................. 24
V .............................................................................................................................. 24
W ............................................................................................................................. 24
X .............................................................................................................................. 24
Y .............................................................................................................................. 24
Z .............................................................................................................................. 24
Resources ............................................................................................................... 25
A
Ability: (LAI Criteria). A prospect’s capacity to make a gift of the size considered
appropriate.
ABN: See Australian Business Number.
Accountability: The responsibility of an organisation to keep a donor informed about
the how their gift is used as well as the cost involved to raise that gift.
ACCC: See Australian Competition and Consumer Commission.
ACFRE: See Advanced Certified Fund Raising Executive.
Acknowledge: To express gratitude for a gift or service in written or oral form,
communicated either publicly or privately.
ACN: See Australian Company Number.
ACNC: See Australian Charities and Not-For-Profits Commission.
Acquire: 1. To secure a gift from a donor. 2. To purchase or receive (equipment). 3.
To come into possession of (another organisation, program, or project).
ADAPE: See Association of Development and Alumni Professionals in Education.
ADMA: See Australian Direct Marketing Association.
Advanced Certified Fund Raising Executive: The ultimate professional credential
conferred by AFP. It signals to fellow professionals, employers and the general public
that its bearer possesses senior level fundraising knowledge, skills, leadership,
management and professional standards.
Advocacy: To present a cause with the intention of influencing the course of events.
AFP: See Association of Fundraising Professionals.
AHP: See Association for Healthcare Philanthropy.
Alpha Test: The initial testing procedure for a direct mail package or computer
program.
Alumni: Graduates or former students of an educational institution or organisation’s
program.
AMFIA: See Associate Member, Fundraising Institute Australia.
Annual Fund: See Annual Giving Fund.
Annual Giving Fund: The foundation of all other fundraising efforts. It seeks to
establish a broad base of donors whose financial and volunteer support ensure
ongoing fulfilment of the organisation’s mission. Typically, funds are not tied to
specific projects so can be applied at the organisation’s discretion.
Annual Report: A yearly report of the financial and program status of an organisation
or institution.
Appeals Officer: A person appointed by the FIA Board to conduct an appeal under
the FIA Complaints Process.
ASIC: See Australian Securities & Investments Commission.
Associate Member, Fundraising Institute Australia: Individual member of FIA who
has less than two years fundraising experience.
Association of Development and Alumni Professionals in Education (ADAPE):
The peak organisation representing and specifically catering for advancement
professionals in the education sector.
Association for Healthcare Philanthropy (AHP): A USA-based professional
organisation that provides programs in service, education, and research for those
working in development positions in hospitals and other health-care organisations
and institutions.
Association of Fundraising Professionals (AFP): A USA-based professional
society that fosters the development and growth of fundraising professionals, works
to advance philanthropy and volunteerism, and promotes high ethical standards in the
fundraising profession. Equivalent to FIA.
ATO: See Australian Taxation Office.
Attrition: See Donor Attrition.
Attrition Rate: The rate at which donors do not renew their gifts or the rate at which
pledges are not fulfilled.
Australian Business Number: A single identifier for all business dealings with the
tax office and for dealings with other government departments and agencies.
Australian Charities and Not-For-Profits Commission: A new organisation being
set up by the Commonwealth Government to regulate charities.
Australian Company Number: The number allocated by the Australian Securities
and Investments Commission (ASIC) when a body becomes registered as a
company.
Australian Competition and Consumer Commission: Australian government
organisation responsible for ensuring compliance with the Trade Practices Act 1974.
Australian Direct Marketing Association: A professional, membership based
association representing the direct marketing industry. It aims to create an
environment for the advancement of responsible, effective and creative multi-channel
marketing.
Australian Securities & Investments Commission: An independent
Commonwealth Government body that regulates Australia’s corporate, markets and
financial services.
Australian Taxation Office: The Government's principal revenue collection agency,
which is part of the Treasurer's portfolio. Their role is to manage and shape tax,
excise and superannuation systems that fund services for Australians.
B
Benefactor: A generous donor, usually at the highest gift level.
Beneficiary: 1. Any person or entity which receives a service or benefit from an
organisation in pursuance of the organisation’s objects. 2. A person or organisation
that received or is named to receive a gift or gifts.
Benevolence: 1.The propensity to promote the well-being and happiness of others.
2. An act of kindness or generosity. 3. A generous gift.
Bequest: The gift of any asset or right given to an organisation by a donor by the
donor’s will and includes a legacy, residuary bequest, pecuniary bequest,
contingency bequest or specific bequest.
Bequeath: To give or leave a gift by means of a will when one dies.
Beta Test: The secondary testing procedure for a direct mail package or computer
program.
Board: See Board of Directors.
Board of Directors: People elected or appointed to establish policy, exercise fiscal
responsibility and oversee management.
Board of Trustees: An organisation may choose to establish a separate entity to
hold and manage donations. Then, a Board of Trustees may be established
specifically for that entity with governance obligations solely for it and not the overall
organisation. The Board of Directors would continue to have governance
responsibilities for the overall organisation. See also Board of Directors.
C
Campaign: An organised effort to raise a specified amount of money for a particular
purpose in a particular period of time.
Campaign Code: The vehicle or technique that elicits a donation, such as a personal
solicitation memorial, acquisition mailing, newsletter, annual appeal, or membership
dues.
Capital Campaign: An intensive fundraising effort designed to raise a specified sum
of money within a defined time period to meet the varied asset-building needs of an
organisation.
CAPEX: See Capital Expenditure.
Capital Expenditure: The amount needed to acquire an asset that has an expected
useful life of more than one year.
Case: The reasons why an organisation both needs and deserves philanthropic
support, usually expressed by outlining the organisation’s programs, current needs,
and plans.
CASE: See Council for Advancement and Support of Education.
Case, External: The expressions for fundraising created after the internal case has
been written. It tells the story to the organisation’s constituencies in the form of
brochures, foundation (and corporation) proposals, direct mail letters, website
development, campaign prospectuses, news releases, newsletters, speeches and
face-to-face solicitations.
Case, Internal: Also known as the case resources file. The internal case prepares
the organisation to develop expressions for fundraising. A database of information
and knowledge, it arranges and presents the information for purposes of
communications, public relations and fundraising.
Case Statement: A declaration or presentation that sets forth a case for an
organisation or cause etc. The purpose of a case statement is to stimulate a potential
donor to take a series of steps, ultimately resulting in the decision to make a gift.
Cause: 1. An ideal or principle served with dedication and zeal. 2. The societal need,
void, or value addressed by an organisation.
Cause-related Marketing: Marketing in which a for-profit organisation, by using the
name of a not-for-profit organisation, promotes its product and in return provides
financial support to the organisation according to a predetermined formula based on
sales and purchases.
CEO: Chief Executive Officer.
Certified Fund Raising Executive (CFRE): The only internationally-recognised
baseline professional credential for philanthropic fundraising executives.
Certified Fund Raising Executive International: A US-based international
organisation that certifies, through a voluntary certification process, fundraising
professionals who demonstrate the knowledge, skills, and commitment to the highest
standards of ethical and professional practice in serving the philanthropic sector. It is
a collaboration of fundraising associations and organisations across the world.
CFRE: See Certified Fund Raising Executive.
CFRE International: See Certified Fund Raising Executive International.
Charitable Gift: The ATO defines a gift as having the following characteristics:
 There is a transfer of money or property;
 The transfer is made voluntarily;
 The transfer arises by way of benefaction; and
 No material benefit or advantage is received by the donor.
Charitable Foundation: A legal vehicle that allows the transfer of gifts from an
individual, family or corporation to a charity.
Charitable Gaming Activity: Any game of chance carried out as a Fundraising
Activity in pursuance of the organisation’s objects. A Charitable Gaming Activity may
include (without limitation) raffles, lotteries, art unions, bingo, lucky dips, lucky door
prizes, guessing competitions, Silver Circles, Calcutta sweeps, sweeps, football
doubles, lucky envelopes, tipping competitions).
Charitable Organisation: See Charity.
Charitable Purpose: The ATO defines charitable purposes as:
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The relief of poverty or sickness or the needs of the aged;
The advancement of education;
The advancement of religion;
Other purposes beneficial to the community (e.g. culture, the environment,
protecting animals, promoting industry, commerce and agriculture, and public
works and utilities); and
The provision of child care services on a not-for-profit basis.
Charitable Trust: See Charitable Foundation.
Charity: In legal terms, an entity established for altruistic purposes that the law
regards as charitable. The ATO defines a charity as having the following
characteristics:

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It is an entity (an institution, incorporated association, unincorporated group,
company, trust fund etc);
It exists for the public benefit or the relief of poverty;
Its purposes are charitable within the legal sense of that term;
It is not-for-profit; and
Its sole purpose is charitable.
Child or Children: A child under the age of 18.
Code of Ethics: A guide for professional conduct.
Community Fundraising: An individual, organisation or community group that seek
to raise money for a cause or another larger charitable organisation. Community
fundraisers are volunteers (i.e. not professional fundraisers).
Complaint: A notice in writing sent by any person to FIA, by way of a completed FIA
Complaints Form, concerning an alleged breach by an FIA member of any part of the
FIA Principles and Standards of Fundraising Practice.
Complainant: A person who makes a complaint to FIA.
Consent: Refers to either express consent, where an individual specifically agrees to
an act or proposal of another, or inferred consent, where there is a clear and
reasonable expectation that the person would consent to an act or proposal of
another.
Constituency: All the people who have been involved with an institution seeking
support. Consists of advocates, solicitors, volunteers, service recipients, members,
contributors and others.
Constituent: A person belonging to a particular constituency.
Contingency Bequest: A Bequest made only when the executor of an estate cannot
distribute the estate as planned in the will.
Contract: A legal agreement between two or more parties for the doing or not doing
of some definite thing. A contract should always be in writing.
Corporation: An entity incorporated under the Corporations Act 2001 (Cth) and
established for the purpose of profit.
Corporate Giving Program: 1. A grant-awarding program established and controlled
by a profit-making corporation. 2. An organisation’s activities to solicit donations from
a corporation.
Corpus: The original gift and ongoing principal that forms the asset base from which
a charitable foundation operates. Income from the corpus is given away in the form of
grants.
Cost of Fundraising: The costs of inducing potential donors to contribute money,
services, property and/or time.
Council for Advancement and Support of Education: A USA-based member
association that provides educational programs and publications for institutions of
higher education and elementary and secondary schools.
Credential: A qualification, achievement, quality or aspect of a person’s background
indicating their suitability for something.
Cultivation Event: A function designed to engage and maintain the interest and
involvement of a donor, prospective donor, or volunteer with an organisation or
cause.
D
Data: 1. Information; facts. 2. The basic elements of information that can be
processed or produced by a computer.
Database: Indexed information held in computer storage, from which a computer
user can retrieve selected material.
Data Mining: To find individuals in an organisation’s database that share similar
patterns such as giving frequency, volunteer activities, memberships etc.
Data Segmentation: See Segmentation.
Database Screening: To systematically examine an organisation’s database to then
select or eliminate a prospect(s) in order to determine suitability to make a gift at a
particular level.
Deductible Gift Recipient: An entity that is entitled to receive income tax deductible
gifts. All DGRs have to be endorsed, unless they are named specifically in the income
tax law. There are two types of DGR endorsement. One is for entities that are DGRs
in their own right. The other is for an entity that is a DGR only in relation to a fund,
authority or institution that it operates. For the second type, only gifts to the fund,
authority or institution are tax deductible.
Dedupe: To remove duplicates (e.g. names from a mailing list).
Deferred Gift: A gift that is committed to a charitable organisation but is not available
to use until some future time.
Demographic: Of or pertaining to demography.
Demography: The science that deals with the characteristics of a population,
including size, density, growth, distribution, and vital statistics such as age, sex,
marital status, family size, education, income, and occupation.
Development: An organisational process which contributes to the growth of an
organisation’s mission - includes planning, communications and fundraising.
Development Plan: A written summary of development goals and objectives and the
strategies by which an organisation will achieve them within a given period of time.
DGR: See Deductible Gift Recipient.
Direct Cost: See Expense, Direct.
Direct Mail: The marketing of goods or services or the seeking of donations through
mail where customers or donors are invited to respond.
Direct Marketing: The marketing of goods or services or the seeking of donations
through means of communication at a distance where:


Consumers are invited to respond using a means of communication at a
distance; and
It is intended that the goods or services be supplied under a contract
negotiated through means of communication at a distance.
Direct Response Television: Television advertising that asks the viewer to respond
directly to the company or organisation, usually via a free-call number or website.
Director: A person who is appointed or elected to the position of a director of an
organisation or a corporation.
Diversity: The state or fact of being diverse; difference; unlikeness. Variety;
multiformity. A point of difference.
Donation: A voluntary contribution by a donor of money, property, goods or services
to an organisation for the purpose of furthering that organisation’s objects. It does not
include a sponsorship or community business partnership.
Donor: An individual or other entity that makes a contribution of value to an
organisation to further the organisation’s objects. A donor includes prospective
donors and an individual or entity that has previously made a donation. A donor does
not include an individual or entity that engages with an organisation for the purpose of
trade.
Donor Acquisition: The process of identifying and obtaining donors.
Donor Attrition: The loss of donors.
Donor Cultivation: To engage and maintain the interest and involvement of a donor
or prospective donor with an organization’s people, programs, and plans.
Donor Fatigue: Reluctance on the part of donors to commit to voluntary donations of
time, money or property etc. due to being asked too many times.
Donor Pyramid: A conventional model of fundraising which demonstrates the typical
process of donor involvement from annual gifts through to the planned gift.
Donor Recognition: The policy and practice of providing acknowledgement to a
donor by a personal letter, a public expression of appreciation, a published list of
donors, or another appropriate way.
Donor Recognition Event: A function designed to thank and honour donors as well
as provide information and details about how their donations have been used.
Donor Renewal: A repeat donation from the same person or entity.
Donor Solicitation: To ask a person or group for a contribution of money, resources,
a service, or opinion.
Donor Upgrade: The activity by which a donor increases his or her level of giving.
DRTV: See Direct Response Television.
E
Electronic Fundraising Activity: Any Fundraising Activity carried out by electronic
communications including internet communications, electronic mail (“email”) and
mobile telephone communications including text messaging (“SMS”).
Electronic Fundraising Supplier: An entity which owns or operates an electronic
fundraising service for corporations, organisations or members of the public.
EFT: See Electronic Funds Transfer.
Electronic Funds Transfer: A process or act by which a person may authorise
automatic and periodic deductions from his or her bank account to be credited to
another account.
EMFIA: See Executive Member, Fundraising Institute Australia.
Endowment: A permanently restricted net asset, the principal of which is protected
and the income from which may be spent and is controlled by either the donor’s
restrictions or the organisation’s governing board.
Entrepreneur: A person who sets up a business or businesses, taking on financial
risks in the hope of making a profit.
Ethics: The moral considerations of the activities of an individual or organisation.
Also standards of conduct and methods of doing business by individuals and
organisations that provide assurances of professionalism in client relationships.
Ethics Committee: A committee established by the FIA Board pursuant to the
Constitution for the purposes of making determinations on Complaints.
Ethnic: Relating to or peculiar to a population, especially to a speech group, loosely
also to a race. Relating to the origin, classification, characteristics, etc., of such
groups. Of or relating to members of the community who are migrants or the
descendants of migrants and whose native language is not English. Recognisable as
coming from an identifiable culture.
Ethnic Continuum: A fundraising model showing how people of diverse populations,
especially immigrants, move from more personal sharing and mutual aid to more
institutional forms of giving as they become more affluent and more involved in
philanthropy.
Executive Member, Fundraising Institute Australia: A level of membership of FIA
that is awarded to regular members with more than five years fundraising experience,
subject to the approval of the Board. Regular members must apply for Executive
status; it is not awarded automatically.
Expense, Direct: An expense that can be completely attributed to the production of
specific goods or services. Examples include printing, postage, travel expenses etc.
Expense, Indirect: An expense that cannot be directly attributed to the production of
specific goods or services. Examples include staff salaries, office furnishings, finance
and legal support etc.
Expense, Overhead: The expenses relating to the management and running of the
organisation. Examples include electricity, heat, insurance etc.
F
F&P: See Fundraising & Philanthropy Magazine.
Face to Face Fundraising Activity: An activity carried out by a person, corporation
or organisation, whether for remuneration or as a volunteer, for the purpose of raising
donations for the object of an organisation by means of recruiting donors by seeking
pledges for regular donations to an organisation in places or venues open to
members of the public.
FAHP: See Fellow, Association for Healthcare Philanthropy.
FBT: See Fringe Benefits Tax.
Fellow, Association for Healthcare Philanthropy: A credential, developed and
granted to a professional fundraiser by the Association for Healthcare Philanthropy,
that is based upon specific standards of service, experience, and knowledge. This is
the highest designation for a fundraiser in the health-care field in the United States.
Fellow, Fundraising Institute Australia: A level of membership of FIA that is
awarded following intense review and reflection by one’s peers. To be eligible for
election as a Fellow, an FIA member must meet the requirements of a fellow as
detailed in clause 19 of the FIA constitution.
FFIA: See Fellow, Fundraising Institute Australia.
FIA: See Fundraising Institute Australia.
FIA Member: A person or organisation who is registered as an FIA member.
FIA Principles & Standards of Fundraising Practice: The professional fundraiser’s
guide to ethical, accountable and transparent fundraising. The Principles are the
overarching ethical codes that apply to all fundraisers and the Standards focus on
specific disciplines of fundraising practice.
Fiduciary: Involving trust, especially with regard to the relationship between a trustee
and a beneficiary.
FINZ: See Fundraising Institute of New Zealand.
Frequency: Used in Direct Marketing – a measure reflecting how often a donor
makes a donation.
Fringe Benefit: Benefits received by employees from their employer in place of
salary or wages such as the use of a car for private purposes.
Fringe Benefits Tax: Tax payable on a non-salary benefit provided to an employee.
Foundation: See Charitable Foundation.
Fund: A gift or trust fund: a) to which donations of money or property are made for
the principal purpose of a Trust; and b) to which any money received by the Trust
because of those donations is to be credited. For the avoidance of doubt, this
definition includes but is not limited to prescribed private fund and public fund.
Fundraiser: A person, corporation or organisation, who carries out activities, whether
for remuneration or as a volunteer, for the purpose of raising donations for the objects
of an organisation.
Fundraising Activity: An activity carried out by a person, corporation or
organisation, whether for remuneration or as a volunteer, for the purpose of raising
funds for the object of an organisation.
Fundraising & Philanthropy Magazine: An Australian industry magazine created for
managers and executives in the non-profit sector working in fundraising, marketing,
philanthropic and leadership roles.
Fundraising Consultant: A person with expertise in a specific area of fundraising
who is engaged by a client to provide advice and/or services.
Fundraising Cycle, The: The practice of fundraising which progresses in logical
sequence from planning to preparation, execution, evaluation and back to planning.
Fundraising Event: Any fundraising activity in which a function is held to raise
donations for the objects of an organisation.
Fundraising Institute Australia: The national peak body representing professional
fundraising in Australia.
Fundraising Institute of New Zealand: The professional body for charities and
those employed in or involved with fundraising, sponsorship and events in the not-forprofit sector in New Zealand.
G
Gift: See Charitable Gift.
Gift Proposal: A plan or suggestion, especially a formal or written one, put forward
for consideration by a donor or prospect.
Gift Range Table: A table projecting the number of gifts by size in descending order
so as to achieve a particular fundraising goal. Usually used in capital campaign
planning.
Gift Receipt: See Tax Receipt.
Goal: 1. An all-embracing focus of accomplishment supported by specific objectives
that an organisation aims to achieve. 2. The amount of money a fundraising
organisation hopes to raise for a campaign.
Goods and Services Tax: A broad-based tax of 10% on most supplies of goods and
services consumed in Australia.
Governance: A process by which decisions on policy, budget and personnel are
made by the executive leadership of an organisation.
Governing Board: See Board of Directors.
Grant: An award of money made to an organisation by a Fund after assessing the
organisation’s application for a Grant.
Gross Income: Total revenue received by a person or organisation prior to the
deduction of expenses.
GST: See Goods and Services Tax.
H
High Net Worth: Individual with significant/extensive assets outside the family home,
superannuation and net debt well in excess of AUD$1M and an annual personal
taxable income of $1M plus. (Effective Philanthropy 2011).
HNW: See High Net Worth.
I
IFC: See International Fundraising Congress, The.
Indirect Cost: See Expense, Indirect.
Institute of Fundraising: The professional membership body for fundraising in the
United Kingdom.
Interest: (LAI Criteria). Degree of interest in the work of the organisation and its
mission.
International Fundraising Congress, The: International fundraising conference
based in the Netherlands and run by The Resource Alliance.
Internet Service Provider: A body which provides an internet communication service
which gives users access to internet services including the World Wide Web.
IOF: See Institute of Fundraising.
ISP: See Internet Service Provider.
J
K
L
LAI Criteria: A way of qualifying prospects on the basis of Linkage, Ability and
Interest.
Lapsed Donor: A donor who has contributed at any time prior to the current year.
Leadership Gift: A gift, donated at the beginning of a campaign, that is expected to
set a standard for future giving.
Lifetime Value: The financial value ascribed to a donor file in terms of anticipated
average giving and expected average years of active giving.
Linkage: (LAI Criteria). Physical, emotional, financial, personal etc connections
between a prospective donor and the cause. Used to assess a donor’s likelihood to
make a gift.
Legacy Gift: See Bequest.
M
Major Donor: An individual who gives a major gift.
Major Gift: A significant donation to a not-for-profit organisation, or the amount
considered significant enough by the organisation to qualify as a major gift.
Mail House: A commercial business that addresses, inserts, sorts, bags, and delivers
a mailing to a post office.
Matched Giving Fundraising Activity: A Fundraising Activity whereby corporations
match the amount of donations made by its staff donors to organisations. Matched
Giving Donations are paid by the corporation and are not deducted by a corporation’s
payroll office from salaries of employees.
MFIA: See Regular Member, Fundraising Institute Australia.
Mission: An organisation’s purpose, fulfilling a societal need.
Mission Statement: A philosophical or value statement that seeks to explain why an
organisation exists, or its basic reason for being. It is not defined in expressions of
goals or objectives.
MMS: See Multimedia Messaging Service.
Moves Management: ‘Moves’ are simply the steps taken in the donor cultivation
process that develop the relationship between the organisation and the prospective
donor. Moves management is the process of planning and recording every interaction
with a donor or prospective donor in your database and acting on interactions
appropriately.
Multimedia Messaging Service: A system that enables mobile phones to send and
receive images, audio and video.
N
Needs Assessment: The study of an organisation’s program or situation to
determine what activity (or activities) should be initiated or expanded to satisfy a
need.
Needs Statement: A document created out of a needs assessment.
Net Income: The income that remains after all expenses have been deducted from
the gross income.
O
Objects: The objective, purpose or cause, however so defined in an organisation’s
constituent documents.
Objective: A measurable step towards achievement of a goal.
Online Advertising: A form of promotion that uses the internet and World Wide Web
to deliver marketing messages to attract customers.
Online Fundraising: The use of the internet to solicit donations.
Organisation: An entity incorporated under Commonwealth, State or Territory
legislation and established for a purpose other than profit.
Overhead Costs: See Expense, Overhead.
Overseas Aid Agency: An organisation in another country which receives donations
from an organisation as a result of an Overseas Aid Fundraising Activity.
Overseas Aid Fundraising: Any Fundraising Activity carried out by or on behalf of
an organisation in Australia with the object of raising donations for the purpose of
transferring donations to a fundraiser or organisation located in another country.
P
PAF: See Private Ancillary Fund.
Patron: A person who lends his or her name for the purpose of promoting an
organisation or cause.
Pay As You Go Tax: A single, integrated system for reporting and withholding
amounts and tax on business and investment income.
PAYG Tax: See Pay As You Go Tax.
Payroll Giving: See Workplace Giving.
Payroll Deduction: A method of donation where the donor specifies an amount to be
paid through periodic deductions from his/her salary.
Pecuniary Bequest: A bequest of a specific sum of money.
Peer Screening: To engage the Board or other high-level volunteers to review lists of
potential prospective donors and confidentially share what they know about certain
individuals’ giving habits, interests and ability to give.
Peer-to-Peer Fundraising: Uses viral marketing where current supporters can
spread your organisation’s message through their own social networks.
Philanthropist: Usually used to describe a wealthy individual known for their
exceptional generosity in support of charitable causes. Can describe anyone who
makes a gift.
Philanthropy: The planned and structured giving of money, time, information, goods
and services, voice and influence to improve the wellbeing of humanity and the
community.
Philanthropic Foundation: See Charitable Foundation.
Planned Giving: ‘Considered’ or intentional gifts rather than ones given reactively
and on the spur of the moment, without involving serious thought.
Pledge: 1. A promise that is written, signed, and dated, to fulfill a commitment at
some future time; specifically, a financial promise payable according to terms set by
the donor. Usually a commitment to donate a specific sum annually over a number of
years . 2. A verbal promise.
Pledge Card or Form: A printed form used by a donor to make a pledge as a
response to an appeal.
POST Method: A social media model used to create a social media plan or strategy.
P = People, O = Objectives, S = Strategies, T = Technologies.
Private Ancillary Fund: A type of tax-deductible foundation that cannot fundraise
from the general public and must be controlled by a body corporate. It must distribute
the equivalent of 5% of its capital value every year and must have a formal
investment plan and be compliant with PAF guidelines. It can be endorsed as a
charity, in which case it must fund only charitable DGRs. It can be endorsed as an
Income Tax Exempt Fund (ITEF), in which case it may be able to distribute to a wider
range of DGRs. Increasingly popular in Australia as a means for wealthy individuals
to structure their philanthropic support.
Private Charitable Trust: Established via a trust deed with a charitable purpose and
can be established and controlled by an individual, family or company. Donations to it
are not tax deductible although it may obtain tax exemption through being endorsed
as a tax concession charity. It is not subject to the restrictions contained in the PAF
guidelines with regard to the appointment of a Responsible Person and an auditor.
Profession: Requires expert knowledge with a theoretical base, an active
professional association with a code of ethics and a demonstrated devotion to service
and control of credentialing.
Professional Development: The process of obtaining the skills, qualifications and
experience to enable you to progress in your chosen career.
Professional Misconduct: Conduct by an FIA member that is a violation of the
Principles and Standards of Fundraising Practice that has serious adverse
consequences to a Complainant or was committed intentionally by the fundraiser or
both.
Promotional Material: Any material in connection with a donation, Fundraising
Activity or an organisation whether in printed, electronic or verbal form made
available by a fundraiser or organisation to any person.
Prospect: Any potential donor whose linkages, giving ability and interests have been
confirmed.
Prospect Profile: A report outlining the relevant facts about a prospective donor such
as basic demographic information, financial resources, past giving, linkages,
interests, potential future giving etc.
Prospect Rating: A procedure for evaluating the giving potential and capacity of a
prospect.
Prospect Research: To search for relevant information about prospects and donors;
or the identification of new prospects.
Prospect Screening: A preliminary evaluation of broad categories of potential
donors prior to rating.
Prospect Tracking: The documenting of a prospective donor’s progress from
cultivation through solicitation.
Prospect Qualification: The process to determine which donors have the linkage,
interest and ability to make a gift of a predetermined level.
Public Ancillary Fund: A grantmaking foundation established by will or by trust
deed. It is a DGR and can only exist for the purposes of providing grants to DGRs. It
must be managed by members of a committee or board and the public must be
invited to contribute to the fund, and must actually contribute to it.
Q
Qualification: A pass of an examination or an official completion of a course,
especially one conferring status as a recognized practitioner of a profession or
activity.
Qualitative Research: A form of market research that involves gathering, recording,
and evaluating information about the attitudes and behaviour of an organisation’s
constituents relative to the organisation or to the issues it represents, or both.
Quantitative Research: A form of market research that involves gathering,
recording, and analysing data in numerical or objective form about an organisation’s
target audience or audiences.
R
Reason Code: The vehicle or technique that elicits a donation, such as a personal
solicitation memorial, acquisition mailing, newsletter, annual appeal, or membership
dues.
Recency: Used in Direct Marketing – a measure reflecting the most recent date of a
donation.
Regular Member, Fundraising Institute Australia: Individual member of FIA who
has more than two years fundraising experience.
Relationship Fundraising: An approach to the marketing cause that centres not on
raising money but developing its full potential the unique and special relationship
between a charity and its supporter.
Request for Proposal: Project management term. An invitation for suppliers or
consultants to submit a proposal for a specified body of work or service.
Residuary Bequest: A bequest of the residue of a donor’s estate, after all other
specific legacies have been met.
Resource Alliance: A United Kingdom registered charity with a mission to be the
global network for fundraising, resource mobilisation and philanthropy.
Response Device: A form or envelope used for conveying a reply to a mailed
appeal.
Response Rate: The percentage of responses received in a direct-mail appeal or of
questionnaires completed and returned in a survey.
Responsible Person: Defined by the ATO as:
•
•
•
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Persons who are considered to have a degree of responsibility to the
community as a whole.
Generally, persons who are acceptable as having a degree of responsibility to
the community as a whole are known to a broad section of the community
because they perform a public function or they belong to a professional body
(such as the Institute of Chartered Accountants, State Law Societies and
Medical Registration Boards) which has a professional code of ethics and
rules of conduct.
Other persons who are acceptable are appointees of a Chief Justice of the
Supreme Court.
Persons who have received formal recognition from the Government for their
services to the community (for example, an Order of Australia award) will also
be considered to have the requisite degree of responsibility.
Return on Investment: A performance criteria used to evaluate the efficiency of an
investment. It is calculated by dividing the benefit of the investment by the cost of the
investment, expressed as a percentage.
(
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RFP: See Request for Proposal.
RFV Scoring: Used in Direct Marketing - Recency, Frequency and Value scoring.
ROI: See Return on Investment.
Rule of Thirds: A formula for constructing a gift range table for a capital campaign,
based on the premise that ten donors account for the first third of funds raised, the
next hundred donors for the next third, and all remaining donors for the final third.
S
Sacrificial Gift: A gift that represents a genuine sacrifice on the part of the donor.
School Fundraising Activity: An activity carried out by a person, corporation or
organisation, whether for remuneration or as a volunteer, for the purpose of raising
funds for the objects of a school, an organisation or a Fund.
Search Engine: A software program that enables a user to find items on a database
or network, especially the internet.
Search Engine Marketing: To improve the visibility of a website or web page in a
search engine through paid advertising, website design, copywriting, social media
presence, keywords or a combination of all.
Search Engine Optimisation: To improve the visibility of a website or web page
through natural search results through using search engine friendly content, choosing
keywords wisely, getting others to link to your site, effective use of social media etc.
SEM: See Search Engine Marketing.
SEO: See Search Engine Optimisation.
Segmentation: To break down the market into smaller groups that share common
properties. Examples of markets you might segment include donor and prospect lists.
Short Message Service: A system that enables mobile phones to send and receive
text messages.
SMART Goal: The qualities of an effective objective. S = Specific, M = Measurable, A
= Achievable, R = Results-oriented, T = Time-determined.
SMS: See Short Message Service.
Social Media: Websites and applications that are used for social networking, e.g.
Facebook, Twitter.
Social Media Fundraising Activity: Any Fundraising Activity carried out by social
media websites.
Social Network: 1. A network of social interactions and personal relationships. 2. A
dedicated website or application which enables users to communicate with each
other.
Social Networking: The use of dedicated websites and applications to communicate
with or find other users.
Solicit: To ask (a person or group) for a contribution of money, resources, a service,
or opinion.
Solicitation Event: See Fundraising Event.
Special Event: A function designed to attract and involve people in an organisation
or cause.
Specific Bequest: A bequest of a specific and severable asset or right.
Sponsor: A third party who sponsors a Fundraising Activity for an agreed outcome.
Sponsorship: 1. Financial support received from a sponsor. Sponsorship involves
the mutual exchange of benefits such as the payment of a sponsorship fee to an
organisation in return for marketing opportunities such as branding, corporate
hospitality, etc. Typically, the sponsorship would be governed by an agreement
setting out mutual rights and responsibilities. A sponsorship is thus distinctly different
to a donation and the two should not be confused. 2. The position of being a
sponsor.
Stakeholder: A person who has a special interest in the activities and decisions of an
organisation.
Stewardship: A process whereby an organisation seeks to be worthy of continued
philanthropic support, including the acknowledgment of gifts, donor recognition, the
honouring of donor intent, wise investment of gifts, and the effective and efficient use
of funds to further the mission of the organisation.
Stewardship Event: See Donor Recognition Event.
Strategic Plan: Decisions and actions that shape and guide an organisation while
emphasizing the future implications of present decisions. This plan usually employs
the SWOT analysis.
Stretch Gift: A donation that fulfils a donor’s optimum capacity to give or a gift that is
larger than a donor originally intended to make.
Stretch Goal: A goal beyond that which was deemed easily achievable.
Subject Member: An FIA member who is alleged to have breached the Principles
and Standards of Fundraising Practice and is the subject of a Complaint.
Supplier: A third party supplying goods or services for payment to a fundraiser and/or
organisation.
SWOT Analysis: A vital part of a planning process that examines an organisation’s
internal strengths and weaknesses as well as the external opportunities and threats
that will impact it in the market(s) in which it operations. S = Strengths, W =
Weaknesses, O = Opportunities, T = Threats.
T
Table of Gifts Needed: A table projecting the number of gifts by size in descending
order so as to achieve a particular fundraising goal. Usually used in capital campaign
planning.
Tax: All taxes payable in connection with a Fundraising Activity, including without
limitation income tax, pay as you go (PAYG) and good and services tax (GST).
Taxable Income: Gross income minus business deductions.
Tax Concession Charity Endorsement: Tax concession charity endorsement
enables organisations to be exempt from paying income tax and lodging an income
tax return. Other benefits include some GST concessions, FBT rebate and
entitlement to a cash refund of franking credits on dividends from investments.
Organisations must meet the legal definition of ‘charitable’ to receive tax concession
charity endorsement.
Tax Deduction: Money you spend to enable you to earn income - allowable
deductions only - such as stationery, equipment, rent, electricity, telephone and tools.
The value of the deduction is subtracted from assessable income to calculate your
taxable income.
Tax Invoice: A document generally issued by the supplier. It shows the price of a
supply, indicating whether it includes GST, and may show the amount of GST. It must
show other information, including the ABN of the supplier.
Tax Receipt: A document generally issued by the supplier indicating payment has
been made in respect of goods or services. It shows the price of a supply, indicating
whether it includes GST, and may show the amount of GST. It must show other
information, including the ABN of the supplier.
Telemarketer: A person who performs telemarketing.
Telemarketing: A method of direct marketing in which a fundraiser uses the
telephone to solicit prospective or existing donors to make a donation to or participate
in a Fundraising Activity for an organisation.
Telethon: A television program in which entertainment features are integrated with a
fundraising message that is broadcast over a television station. During the program
viewers are asked to call and make pledges.
TCC Endorsement: See Tax Concession Charity Endorsement.
Trademark: A word or group of words, logo, image, colour, scent or shape (whether
registered or unregistered) used by an organisation to identify the organisation.
Transformational Philanthropy: A charitable donation that causes a significant
change to either the donor and/or recipient, usually both.
Trust: A trust established under a Trust Deed.
Trust Deed: The written document which establishes a Trust.
Trustee: Persons or institutions responsible for the administration of a Trust. The
person named in the Trust Deed as the Trustee and any other person appointed as a
Trustee from time to time.
Trustee Company: Corporations that are legally authorised to serve as executors of
wills, as trustees of charitable and non-charitable foundations and other executor and
trustee services.
U
Upgrade: See Donor Upgrade.
Ultra High Net Worth: Individual with investable personal assets of AUD$30M or
more. (Effective Philanthropy 2011).
UHNW: See Ultra High Net Worth.
Unsatisfactory Conduct: Conduct by a FIA member that is neglectful of the
Principles and Standards of Fundraising Practice or that has minor adverse
consequences to a Complainant or both.
V
Value: 1. The worth of property, goods or services. 2. (Values) Standards, principles,
qualities, traits or positions regarded as worthwhile or desirable. 3. (Direct Marketing)
a measure reflecting the average amount given by a donor.
Viral Marketing: A marketing technique whereby information about a company’s
goods or services is passed electronically from one internet user to another.
Volunteer: A person who performs a service for an organisation without requiring
compensation for performing the service.
W
Workplace Giving: A voluntary program in which donors can pledge to make regular
donations to an organisation that has deductible gift recipient (DGR) status. As the
donation is made before tax is calculated on their pay, the employee receives an
immediate tax deduction and is not required to obtain a receipt. The pre-tax donation
is sent by the corporation to the DGR organisation selected by the donor. To
demonstrate support for the community and to encourage donors to participate in
Workplace Giving, corporations may choose to provide a level of employee donation
matching.
World Wide Web: An information system on the internet which allows documents to
be connected to other documents by hypertext links, enabling the user to search for
information by moving from one document to another.
X
Y
Z
Resources
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ADAPE (Association of Development and Alumni Professionals in Education).
“Welcome”. Accessed July 16, 2012. http://www.adape.org.au/.
ADMA (Australian Direct Marketing Association). “Definitions”. Accessed May 28,
2012. http://www.adma.com.au/regulatory/code-of-practice/definitions/.
AFP (Association of Fundraising Professionals). “The AFP Fundraising Dictionary
Online”. Accessed July 4, 2012.
http://www.afpnet.org/files/ContentDocuments/AFP_Dictionary_A-Z_final_6-9-03.pdf.
Australian Competition & Consumer Commission. “Welcome to the ACCC”.
Accessed July 18, 2012. http://www.accc.gov.au/content/index.phtml/itemId/142.
Australian Government Australian Charities and Not-For-Profits Commission
Implementation Task Force. “Frequently Asked Questions”. Accessed July 16, 2012.
http://acnctaskforce.treasury.gov.au/content/Content.aspx?doc=faqs/about_faqs.htm.
Australian Government Australian Taxation Office. “Definitions”. Last modified
November, 23 2010.
http://www.ato.gov.au/corporate/content.aspx?doc=/content/8153.htm&mnu=6751&m
fp=001.
Burnett, Ken. 2002. “A Donor-Based Approach to the Business of Raising Money” in
Relationship Fundraising. Jossey-Bass.
Effective Philanthropy. 2011. "Strategies for Increasing High Net Worth and Ultra
High Net Worth Giving – Final Report”. Philanthropy Australia.
http://www.philanthropy.org.au/research/
Fundraising Institute Australia. “About FIA”. Accessed July 5, 2012.
http://www.fia.org.au/pages/about-fia.html.
Fundraising Institute Australia. “Principles and Standards of Fundraising Practice”.
Accessed July 5, 2012. http://www.fia.org.au/pages/principles-standards-offundraising-practice.html.
Fundraising Institute Australia. “Types of Individual Membership”. Accessed July 18,
2012. http://www.fia.org.au/pages/levels-of-individual-membership.html.
Fundraising Institute of New Zealand. “About Us”. Accessed July 18, 2012.
http://www.finz.org.nz/Site/About_Us/default.aspx.
Institute of Fundraising. “About Us”. Accessed July 18, 2012. http://www.institute-offundraising.org.uk/about-us/.
Madden, Kym and Scaife, Wendy. 2008. “Keeping Giving Going. Charitable
Bequests and Australians”. Accessed March 22, 2012.
http://eprints.qut.edu.au/27259/1/Keeping_Giving_Going.pdf.
Meachen, Vanessa. 2010. “A Guide to Giving for Australians”. Philanthropy Australia.
http://www.philanthropy.org.au/involved/guidetogiving.html#g2g.
Oxford University Press. 2012. "Oxford Dictionaries." Accessed July 18, 2012.
http://oxforddictionaries.com/.
Philanthropy Australia. “Philanthropy Australia's Vision and Mission”. Accessed
December 2, 2011. http://www.philanthropy.org.au/aboutus/mission.html.
The Macquarie Library Pty Ltd. 2001. Macquarie Dictionary. Revised 3rd ed. The
Macquarie Library Pty Ltd.
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The Resource Alliance. 2011. “About Us”. Accessed July 18, 2012.
http://www.resource-alliance.org/pages/en/about-us.html.
Tempel, Eugene R., Timothy L. Seiler, Eva E. Aldrich. 2011. Achieving Excellence in
Fundraising. 3rd ed. John Wiley & Sons, Inc.