✓ Free Resource
The Complete Nonprofit Glossary
Clear, honest, jargon-free definitions for every term your nonprofit will encounter - from the basics of accepting donations to the advanced language of governance, finance, and compliance.
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Anonymous Donation
A donation made by a donor who chooses not to have their name publicly associated with their gift. The nonprofit still receives the full donation and retains the donor's details for tax and record-keeping purposes: the anonymity applies to public-facing displays only. Charitable Pro allows donors to opt into anonymous giving at checkout and gives you full control over whether anonymous donations appear in public feeds like the Donations Feed.
Appeal
A targeted ask for donations, usually tied to a specific need, deadline, or campaign. Appeals can be sent by email, direct mail, or social media. The most effective appeals are specific - they tell donors exactly what their money will do, by when, and why it matters now. Year-end appeals and emergency appeals tend to have the highest response rates.
Campaign
A fundraising effort built around one goal - like raising $10,000 to fund a new shelter wing or launching a giving day for a specific program. Unlike general appeals, campaigns have a start date, end date, and a reason to give now.
Capital Campaign
A concentrated, time-limited fundraising drive to raise a large sum for a specific major purpose - typically a building, facility, endowment, or significant equipment purchase. Capital campaigns usually have a public and a quiet phase, with major gifts secured privately before the campaign is announced publicly.
Crowdfunding
A fundraising model where a large number of people each contribute a small amount toward a shared goal, typically through an online campaign page. Crowdfunding works best when the goal is specific, the deadline is clear, and the campaign is shareable. Charitable Pro's Pro plan includes built-in crowdfunding tools so you can run campaigns directly on your WordPress website without relying on third-party platforms.
Donation Goal
A specific fundraising target set for a campaign, displayed visually on the campaign page to show donors how close the organization is to reaching it. Donation goals create urgency and social proof - donors are more likely to give when they can see a campaign is close to its target. Charitable includes customizable donation goal bars on every campaign, available from Lite through all Pro plans.
Donation Teams
A fundraising model where supporters join or form teams to collectively raise money toward a shared goal. Team members each have their own fundraising page, but their totals roll up into a combined team total. Donation teams are particularly effective for events like walkathons, runs, and giving days. Available in Charitable Pro's Pro plan.
Donor
Any individual, organization, or entity that makes a gift to your nonprofit. Donors can give one-time or on a recurring basis, in cash or in kind, publicly or anonymously. Building strong donor relationships - through timely receipts, meaningful updates, and genuine stewardship - is the foundation of long-term fundraising success.
Donor Leaderboard
A public display that ranks donors by giving amount, encouraging friendly competition and social recognition. Leaderboards are particularly effective during giving days, peer-to-peer campaigns, and challenge fundraisers. They tap into donors' desire for recognition and belonging. Available in Charitable Pro's Basic plan and above.
Gift Aid
A UK government scheme that allows registered charities to reclaim an additional 25% on top of eligible donations made by UK taxpayers, at no extra cost to the donor. For every £10 donated by a qualifying donor, the charity can reclaim an additional £2.50 directly from HMRC. Donors must complete a Gift Aid declaration to make their donation eligible. Charitable Pro supports Gift Aid on its Plus plan and above.
Giving Day
A concentrated 24-hour fundraising event - either organized by your nonprofit or as part of a broader community or national initiative like Giving Tuesday. Giving days create urgency, leverage social sharing, and often include matching gift incentives. The combination of a hard deadline and visible momentum makes giving days one of the highest-converting fundraising formats available.
Giving Tuesday
A global generosity movement held annually on the Tuesday after Thanksgiving in the United States. It has grown into one of the largest fundraising days of the year for nonprofits worldwide. Organizations that prepare early - with a clear goal, a matching gift partner, and a strong email and social strategy - consistently see their best single-day results on Giving Tuesday.
In-Kind Donation
A non-cash gift of goods or services rather than money. Examples include donated office supplies, professional services, food, equipment, or event space. In-kind donations have real financial value and should be documented and acknowledged just like cash gifts. They do not typically flow through a donation platform but should be recorded in your donor management system.
Major Gift
A significant donation that represents a meaningful portion of your annual fundraising revenue. The threshold for what qualifies as a major gift varies by organization - for a small nonprofit it might be $1,000, for a large one it might be $100,000. Major gifts are almost always the result of a personal relationship between the donor and the organization, built over time through consistent stewardship and genuine engagement.
Matching Gift
A donation arrangement where a third party - typically a corporation or major donor - agrees to match donations from other donors up to a set amount. Matching gifts are one of the most effective fundraising tools available. They create urgency, double the impact of every dollar raised, and give donors a concrete reason to give now. Many employers offer matching gift programs that donors may not know about.
One-Time Donation
A single gift made without any commitment to give again. One-time donors represent a significant opportunity - research consistently shows that converting even a small percentage of one-time donors to recurring givers dramatically increases donor lifetime value. A thoughtful follow-up sequence after a first gift is one of the highest-ROI activities in nonprofit fundraising.
Peer-to-Peer Fundraising
A model where your supporters create personal fundraising pages on behalf of your organization and raise money from their own networks - friends, family, and colleagues. Each supporter becomes an ambassador for your cause, multiplying your reach without multiplying your costs. Peer-to-peer campaigns consistently outperform standard campaign pages because people give to people they know. Available in Charitable Pro's Pro plan.
Planned Giving
A donation made as part of a donor's long-term financial or estate planning - most commonly a bequest in a will, but also including charitable trusts, annuities, and life insurance designations. Planned gifts are often the largest gifts a nonprofit ever receives. Building a planned giving program requires long-term relationship management and clear communication about legacy giving options.
Pledge
A formal commitment from a donor to make a gift at a future date or in installments over time. Pledges are common in capital campaigns and major gift fundraising. They allow donors to make larger commitments than they could fulfill in a single payment. It is important to track pledges carefully and follow up appropriately - unfulfilled pledges are a common challenge for nonprofits.
Recurring Donation
A donation set up to process automatically on a regular schedule - weekly, monthly, or annually. Recurring donors have significantly higher lifetime value than one-time donors and provide nonprofits with predictable, reliable revenue. Monthly giving programs are among the most powerful tools available for long-term nonprofit sustainability. Available in Charitable Pro's Plus plan and above.
Restricted Gift
A donation given with specific conditions attached by the donor, designating it for a particular program, project, or purpose. Restricted gifts must be used only for the stated purpose and tracked separately in your accounting. While restricted gifts can fund important work, an over-reliance on them can limit organizational flexibility and make it difficult to cover core operating costs.
Social Proof
The simple idea that people trust what others are already doing. Showing a donor that 500 people gave last month is more persuasive than almost any headline. In more detail, it's a psychological phenomenon where people look to the behavior of others to guide their own decisions. In fundraising, social proof means showing potential donors that others are already giving - through donation feeds, donor counts, campaign progress bars, and real-time notifications. When a first-time visitor sees that 47 people gave last week, or that a campaign is 80% funded, their uncertainty decreases and their likelihood of giving increases significantly. Charitable Pro's Donations Feed and DonorTrust integration are both built around the power of social proof.
Tribute Gift
A donation made in honor or in memory of another person. Honor gifts celebrate a living person - often given for birthdays, anniversaries, or milestones. Memorial gifts are made in memory of someone who has passed. Tribute gifts are a powerful fundraising tool because they connect giving to a personal relationship, often bringing new donors into your community who might not have given otherwise.
Unrestricted Gift
A donation with no conditions attached - the nonprofit can use it however it sees fit, including for operating costs, staffing, or any program area. Unrestricted gifts are the most valuable type of donation from an organizational flexibility standpoint. Many donors prefer to designate their gifts to specific programs, so actively communicating the value of unrestricted giving is an important part of any fundraising strategy.
ACH Transfer (Automated Clearing House)
A method of transferring money directly between bank accounts without using a credit card network. For nonprofits, ACH is one of the cheapest ways to accept large donations - fees are typically capped at around $5.00 per transaction regardless of gift size, making it significantly cheaper than card payments for major donors and monthly givers. The tradeoff is that ACH transfers take longer to process than card payments, typically two to three business days.
Authorization Fee
A small fee charged by some payment processors each time a card is checked for validity, even before a transaction is completed. Most modern processors like Stripe do not charge this separately - it is bundled into the transaction fee. If you see an authorization fee listed separately in a processor's pricing, treat it as a red flag and factor it into your total cost calculation.
Chargeback
When a donor disputes a transaction with their bank and the funds are forcibly returned to them. Most processors charge a chargeback fee of between $15 and $25 per incident, regardless of the outcome. Clear receipts, transparent billing descriptors, and good donor communication significantly reduce chargeback risk. If a donor doesn't recognize a charge on their statement, they are far more likely to dispute it than to call you first.
Effective Rate
The true total cost of processing donations expressed as a percentage of the total amount raised, after accounting for every fee - processor fees, platform fees, per-transaction fees, and software subscription costs. Effective rate is the most honest way to compare platforms because it captures the full picture in a single number. A platform with a low headline percentage but a high monthly subscription can have a much higher effective rate than it first appears, particularly at lower donation volumes.
Fee Relief
A feature that gives donors the option to add a small amount - typically around 3% - on top of their donation to cover payment processing costs. When a donor opts in, their full intended gift reaches the nonprofit with no fee deducted. Research shows that 50-60% of donors will choose to cover fees when given the option. Fee Relief is available in Charitable Pro's Plus plan and above.
Interchange Fee
The fee paid to the card-issuing bank every time a card transaction is processed. This is a component of the overall payment processor fee and is set by the card networks - Visa, Mastercard, American Express, and Discover. It is not something nonprofits pay separately - it is built into the processor's rate. Interchange fees vary by card type, with premium rewards cards typically costing more to process than standard debit cards.
Merchant Account
A type of bank account that allows an organization to accept card payments. Modern processors like Stripe and PayPal bundle the merchant account into their service, removing the need to set one up separately. Older payment infrastructure sometimes required a standalone merchant account with its own monthly fees, setup fees, and annual fees. If a payment provider asks you to set up a separate merchant account, make sure you understand all associated costs before committing.
Monthly Subscription Fee
A flat fee charged by some fundraising platforms regardless of donation volume. Always calculate total annual cost rather than comparing headline rates when evaluating platforms.
Nonprofit Rate
A discounted payment processing rate offered by Stripe and PayPal to verified 501(c)(3) organizations. Stripe's nonprofit rate is typically 2.2% plus $0.30 per transaction, compared to the standard rate of 2.9% plus $0.30. PayPal offers a similar discount to organizations verified through TechSoup. You must apply for this rate proactively - it is not applied automatically. For a nonprofit raising $200,000 per year, the difference between the standard and nonprofit rate saves approximately $1,400 annually. Apply as soon as your 501(c)(3) status is confirmed.
Payment Gateway
The technology that securely transmits card data between the donor, the payment processor, and the bank. In modern platforms like Stripe, the gateway and processor are bundled together into a single service. In older payment infrastructure, they were sometimes separate services with separate fees. Charitable supports over ten payment gateways including Stripe, PayPal, Square, Authorize.net, and Razorpay, giving nonprofits flexibility to use the processor that works best for their organization.
Payment Processor
The company that handles the technical infrastructure of moving money from a donor's bank account to yours. Stripe, PayPal, Square, Authorize.net, and Razorpay are payment processors. They verify cards, detect fraud, handle security, and transfer funds. Their fees - typically 2.2% to 2.9% plus $0.30 per transaction for nonprofits - are the unavoidable cost of accepting online payments. They go to the financial networks, not to your fundraising software.
PayPal
One of the world's most widely recognized online payment platforms, trusted by donors globally and supported by nonprofits of all sizes. PayPal supports one-time and recurring donations, requires no dedicated merchant account to get started, and offers a discounted nonprofit processing rate to verified 501(c)(3) organizations. Charitable supports PayPal on all plans, including Lite - making it one of the fastest ways to begin accepting online donations from day one.
PCI Compliance
Payment Card Industry Data Security Standard compliance. A set of security requirements that any organization handling card data must meet to protect donors from fraud. Modern processors like Stripe handle PCI compliance natively as part of their service at no additional cost. Some older merchant account providers charge a separate annual PCI compliance fee of $50 to $200. Always confirm whether PCI compliance is included in a processor's pricing before signing up.
Platform Fee
An additional percentage charged by fundraising software on top of payment processor fees, simply for the use of their donation tools. Platform fees go directly to the software company, not to the financial networks. Unlike processor fees, platform fees are entirely avoidable. Charitable Pro charges zero platform fees - you pay your processor and nothing more, regardless of how much you raise.
Processing Fee
The total cost of processing a payment, typically used interchangeably with payment processor fee. Covers the cost of verifying, authorizing, and transferring funds from donor to nonprofit. Standard rates for nonprofits are around 2.2% to 2.9% plus $0.30 per transaction. This fee is charged by the payment processor - Stripe, PayPal, or similar - and is separate from any platform fee charged by your fundraising software.
Razorpay
A leading payment gateway in India and South Asia, widely used by NGOs, nonprofits, and social enterprises serving donors in the region. Razorpay supports a broad range of local payment methods - including UPI, net banking, wallets, and card payments - making it significantly more accessible to Indian donors than international processors alone. Available as a payment gateway in Charitable Pro, giving organizations with Indian donor bases a seamless, locally appropriate giving experience.
Stripe
A developer-friendly payment processor widely regarded as the gold standard for online card processing. Stripe offers verified 501(c)(3) organizations a discounted rate of 2.2% + $0.30 per transaction and supports one-time payments, recurring giving, Apple Pay, Google Pay, and an expanding range of local payment methods. All Charitable Pro plans include standard Stripe processing. Charitable Pro's deeper Stripe Connect integration - for multi-account payment routing across campaigns or chapters - is available on the Pro plan and above.
Transaction Fee
The per-transaction charge applied by a payment processor each time a donation is processed. Typically expressed as a percentage plus a fixed amount - for example, 2.9% plus $0.30. The fixed portion of the fee has a proportionally larger impact on smaller donations. A $0.30 fixed fee on a $5 donation represents 6% of the gift before the percentage is even applied. This is one reason why encouraging larger average gifts and monthly giving improves your overall effective rate.
Withdrawal Fee
A fee charged by some platforms when you transfer your collected donations out of their system and into your bank account. Common in crowdfunding platforms that hold funds in a pooled account before releasing them. Charitable avoids this entirely because donations go directly from the donor into your connected Stripe or PayPal account - there is no holding tank, no waiting period, and no withdrawal fee. Your money is yours the moment it is processed.
Annual Receipt
A summary document sent to donors at the end of the tax year confirming their total giving over the previous 12 months. Annual receipts are essential for donors who want to claim tax deductions on their cumulative gifts and serve as a meaningful touchpoint that reminds donors of the impact they have made over the year. Charitable Pro generates annual receipts automatically, saving your team significant administrative time at year end. Available on Plus plan and above.
Donor Acknowledgment
A formal recognition of a gift, typically sent immediately after a donation is made. Acknowledgments serve two purposes - they fulfill a legal requirement for gifts over a certain threshold, and they begin the relationship between donor and organization on a positive note. A warm, specific acknowledgment that reflects the donor's gift and its impact is one of the highest-leverage touchpoints in donor retention. Charitable Pro handles acknowledgments automatically through its customizable email system.
Donor Dashboard
A personalized, self-service portal where donors can log in to view their giving history, download receipts, update their payment information, manage recurring donations, and track their impact. A donor dashboard reduces administrative burden on your team by empowering donors to manage their own information, while also deepening the donor's sense of connection to your organization. Available in Charitable Pro's Basic plan and above.
Donor Lifetime Value (LTV)
The total amount a donor is expected to give to your organization over the entire duration of their relationship with you. Lifetime value is one of the most important metrics in fundraising because it shifts focus from individual transactions to long-term relationships. A donor who gives $25 per month for five years has a lifetime value of $1,500 - far more than a one-time gift of $100. Recurring giving programs, strong stewardship, and consistent communication all increase donor lifetime value significantly.
Donor Retention
The practice of keeping existing donors engaged and giving year after year. Donor retention is one of the most cost-effective strategies in fundraising - it costs significantly more to acquire a new donor than to retain an existing one. The average nonprofit retains only 40-45% of its donors from one year to the next, meaning more than half of all donors give once and never again. Improving retention by even a few percentage points has a dramatic compounding effect on long-term revenue.
Donor Retention Rate
A metric that measures the percentage of donors who gave in a previous period and gave again in the current period. Calculated as the number of donors who gave in both years divided by the total number of donors who gave in the previous year, expressed as a percentage. Industry average retention rates hover around 40-45% overall, with first-year donor retention typically lower (20-30%) and multi-year donor retention higher (60-65%). Tracking this number consistently is the first step toward improving it.
Donor Segmentation
The practice of dividing your donor base into distinct groups based on shared characteristics - giving level, giving frequency, geographic location, age, acquisition source, or program interest - and tailoring your communications and asks accordingly. Segmented appeals consistently outperform blanket communications because they feel more relevant and personal to the recipient. At its simplest, segmentation means not sending a first-time donor the same message you send a ten-year major donor.
Donor Stewardship
Everything you do to keep donors connected after their gift - thank-you notes, impact updates, invitations to see your work up close. Good stewardship is what turns a one-time donor into a long-term supporter.
Donor Updates
Communications sent to donors to keep them informed about the progress and impact of the campaigns or programs they have supported. Donor updates can take the form of emails, letters, social media posts, or dedicated campaign update pages. They serve as both a stewardship tool and a re-engagement mechanism - a well-timed update showing a donor the difference their gift made is often the most effective ask you can make for a second gift. Available as a feature in Charitable Pro.
First-Time Donor
A donor who has made their first gift to your organization. First-time donors represent both an opportunity and a risk - they are the entry point to a potentially long and valuable relationship, but they are also the most likely to lapse. The period immediately following a first gift is the most critical window for retention. A prompt, warm, specific acknowledgment followed by a thoughtful onboarding sequence significantly increases the likelihood of a second gift.
Lapsed Donor
A donor who has not given within a defined time period - typically 12 to 24 months. Lapsed donors are not lost donors. Because they have given before, they already have some connection to your cause and are significantly more likely to respond to a reactivation appeal than a cold prospect. A dedicated lapsed donor reactivation strategy - with messaging that acknowledges the gap and reminds them of their past impact - can recover a meaningful percentage of lapsed relationships. Lapsed donors are almost always worth re-engaging before spending budget on acquiring new ones.
Major Donor
A donor whose gift level is considered significant relative to your organization's overall fundraising. The threshold varies - for a small nonprofit it might be $1,000, for a large one it might be $100,000. Major donors typically require and deserve a more personal, relationship-driven approach than mid-level or annual fund donors. Most major gifts are the result of months or years of cultivation, and the vast majority are made because someone was asked - personally, specifically, and at the right moment.
Mid-Level Donor
A donor who gives above your average gift size but below your major gift threshold. Mid-level donors are often the most overlooked segment in nonprofit fundraising - too significant to treat like mass donors, but not receiving the personal attention given to major donors. A dedicated mid-level donor program that offers a more personalized experience than your standard communications - without the full cost of major gift cultivation - can significantly increase revenue from this segment.
PDF Receipt
A formatted donation receipt generated automatically and sent to the donor immediately after their gift is processed. PDF receipts serve as both a legal record of the transaction and a professional acknowledgment of the donor's generosity. They should include the organization's name and tax ID, the donor's name and address, the gift amount and date, and a statement confirming no goods or services were provided in exchange. Charitable Pro generates and delivers PDF receipts automatically on all paid plans.
Prospect
An individual or organization that has been identified as a potential donor but has not yet made a gift. Prospects are typically identified through research, referrals, event attendance, or engagement with your content and communications. Prospect research - the process of identifying and evaluating potential donors based on their capacity to give and their connection to your cause - is a core discipline in major gifts fundraising.
Recurring Donor
A donor who has set up an automatic, scheduled gift - weekly, monthly, or annually. Recurring donors are among the most valuable supporters a nonprofit can have. They provide predictable revenue, tend to give more in total over time than one-time donors, and have significantly higher lifetime value. Building a strong recurring giving program - with a clear ask, easy enrollment, and consistent stewardship - is one of the highest-return investments a nonprofit can make.
Retention Strategy
A planned approach to keeping existing donors engaged and giving over time. An effective retention strategy includes prompt acknowledgment of every gift, regular impact updates, segmented communications tailored to giving level and history, a lapsed donor reactivation program, and a clear major donor cultivation track. Retention strategy is not a single tactic - it is an ongoing commitment to making every donor feel that their gift matters and that your organization values the relationship.
Stewardship Plan
A documented plan outlining how your organization will communicate with and cultivate donors at each giving level over the course of the year. A stewardship plan typically maps out the specific touchpoints - receipts, impact reports, personal calls, event invitations, newsletters - that each donor segment will receive, and assigns responsibility for each one. Having a stewardship plan ensures that no donor falls through the cracks and that your team's time is focused on the relationships most likely to grow.
Upgrade
The process of encouraging a donor to increase their giving level - from one-time to recurring, from annual fund to mid-level, or from mid-level to major donor. Upgrades are most effective when they are specific, timely, and tied to a concrete impact opportunity. Asking a monthly donor to increase their gift by $5 per month - and showing them exactly what that additional $60 per year will accomplish - consistently outperforms a generic ask for more support.
API (Application Programming Interface)
A set of rules and protocols that allows two software applications to communicate with each other and share data. In practical terms, an API is what makes it possible for your donation plugin to talk to your email marketing platform, your CRM, or your accounting software. When a platform says it offers an API, it means developers can build custom integrations between that platform and other tools. For most nonprofits, you will encounter APIs indirectly - through integrations that are already built - rather than working with them directly.
Automation
The use of software to perform repetitive tasks automatically, without manual intervention. In nonprofit fundraising, automation typically refers to triggered email sequences, recurring donation processing, receipt generation, and workflow actions that happen automatically based on donor behavior. Charitable Pro supports automation through Smart Workflows, Zapier, Webhooks, and other integrations on its Pro plan.
Block Editor
The modern WordPress content editor, also known as Gutenberg. The block editor builds pages and posts using individual content blocks - paragraphs, images, headings, buttons, and custom blocks added by plugins. Charitable Pro is fully integrated with the WordPress block editor, meaning you can drop donation forms, campaign showcases, donation feeds, and other fundraising elements onto any page simply by adding a block - no coding or shortcodes required.
Conversion Tracking
The practice of measuring how many website visitors complete a specific desired action - in fundraising, most commonly the successful submission of a donation form. Conversion tracking connects traffic sources and marketing activities to actual completed donations, answering the question: which of your campaigns, emails, and ads are driving real revenue - not just visits? Implementing conversion tracking through Google Analytics allows you to calculate conversion rates per source, evaluate paid advertising ROI, and identify which campaign pages are underperforming. Charitable Pro integrates with Google Analytics for conversion tracking on the Pro plan and above.
CRM (Customer Relationship Management)
A software system used to store, organize, and manage information about donors, volunteers, and other contacts. In the nonprofit context, a CRM is the central database of your donor relationships - tracking giving history, communication history, personal details, and engagement data. A good CRM makes it possible to segment your donors, personalize your communications, and make informed decisions about cultivation and stewardship. Popular nonprofit CRMs include Salesforce Nonprofit, Bloomerang, and DonorPerfect.
Donation Form
The online form donors use to submit a gift to your organization. A well-designed donation form is fast, simple, and mobile-friendly - minimizing the friction between a donor's decision to give and the completion of their gift. Key elements include suggested donation amounts, a recurring giving option, a clear impact statement, and minimal required fields. Charitable Pro's Visual Builder allows you to create, customize, and preview donation forms directly within WordPress with no coding required.
Donation Recovery
A Charitable Pro feature that automatically recaptures donations that were started but never completed. When a donor begins filling out a donation form - entering their name, email address, and intended amount - but abandons the page before submitting, Charitable captures that partial session and sends a personalized recovery email after a set period. The email links the donor directly back to their pre-filled form, removing all friction from completing the gift. Donation Recovery runs automatically after a one-time setup and includes per-campaign reporting showing sessions tracked, recoveries made, and revenue recaptured. Available in Charitable Pro's Pro and Elite plans.
Donations Feed
A block and shortcode feature in Charitable Pro that displays a live, beautiful feed of real donations on any page of your website. The Donations Feed shows real donor names, amounts, comments, and locations - creating a living record of support that builds trust and social proof for new visitors. It includes two display styles, powerful filtering and sorting options, live polling for real-time updates, and full styling controls. No developer or coding is required. Available in Charitable Pro 1.8.13 and above.
Fee Relief
A software feature that presents donors with the option to add a small amount to their donation to cover payment processing costs. When enabled, donors see a checkbox or toggle at checkout asking if they would like to cover the fee so their full gift reaches the cause. The feature calculates the exact amount needed and adds it automatically. Available in Charitable Pro's Plus plan and above.
Integration
A connection between two software tools that allows them to share data and work together. In nonprofit technology, integrations allow your donation plugin to automatically sync donor data to your CRM, add new donors to your email marketing lists, trigger automations in Zapier, or push transaction data to your accounting software. Charitable Pro includes native integrations with Stripe, PayPal, Square, Authorize.net, Razorpay, Mailchimp, ActiveCampaign, MailerLite, Zapier, Google Analytics, and more.
Plugin
A piece of software that adds functionality to a WordPress website without requiring changes to the core WordPress code. Plugins are installed directly from the WordPress dashboard and can add almost any feature imaginable - donation forms, email marketing, SEO tools, page builders, and more. Charitable is a WordPress plugin. This means it lives on your own website, your data stays in your own database, and you are not dependent on a third-party platform to run your fundraising.
SaaS (Software as a Service)
A software delivery model where the application is hosted on the provider's servers and accessed via the internet, typically on a subscription basis. Donorbox and GoFundMe are examples of SaaS fundraising platforms - you use their software, on their servers, and your data lives in their system. The alternative for nonprofits is a self-hosted solution like Charitable, where the software runs on your own website and you retain full ownership of your data and donor relationships.
Self-Hosted
A software model where the application is installed and runs on your own server or website, rather than on a third-party platform's infrastructure. Charitable is a self-hosted WordPress plugin. Self-hosted solutions give nonprofits full ownership of their data, complete control over their donor experience, and freedom from platform fees. The tradeoff is that you are responsible for your own hosting, security, and updates - though with a managed WordPress host and a well-supported plugin like Charitable, this is far less demanding than it sounds.
Shortcode
A small piece of text enclosed in square brackets - for example, [charitable_campaign] - that acts as a placeholder for dynamic content generated by a plugin. When a page containing a shortcode is loaded, WordPress replaces it with the actual content - a donation form, a campaign list, a donations feed, or whatever the shortcode is configured to display. Charitable Pro supports both shortcodes and blocks, giving you flexibility regardless of which editor you use.
Smart Workflows
An automation feature in Charitable Pro's Pro plan that allows you to create rule-based sequences triggered by donor actions. For example, when a donor makes their first recurring gift, a Smart Workflow can automatically send a welcome email, tag them in your CRM, and schedule a follow-up impact update for 30 days later. Smart Workflows reduce manual administrative work and ensure that every donor receives a consistent, timely, and personalized experience without requiring constant attention from your team.
Stripe Connect
A feature of Stripe's payment infrastructure that allows a platform to manage payments across multiple connected Stripe accounts. For nonprofits running multiple campaigns, chapters, or programs - each with their own banking - Stripe Connect simplifies payment routing, reporting, and reconciliation. It is particularly useful for peer-to-peer fundraising and ambassador programs where funds may need to be directed to different accounts. Available in Charitable Pro's Pro plan.
Visual Builder
A drag-and-drop interface for building donation forms without writing any code. With Charitable Pro's Visual Builder, you can create, customize, and preview your donation forms directly in the WordPress editor - adjusting fields, layout, colors, and content in real time. The Visual Builder makes it possible for any nonprofit staff member to build professional, branded donation forms without needing a developer. Available in Charitable Pro's Basic plan and above.
Webhooks
A method of sending real-time notifications from one application to another when a specific event occurs. When a donation is made in Charitable Pro, a webhook can instantly send that information to another system - your CRM, your accounting software, a custom application, or a workflow automation tool - without any manual export or import required. Webhooks are more immediate and efficient than scheduled data syncs and are the preferred integration method for real-time data needs. Available in Charitable Pro's Pro plan.
WordPress
The world's most widely used content management system, powering over 40% of all websites on the internet. WordPress is open source, free to use, and endlessly extensible through themes and plugins. For nonprofits, WordPress offers a powerful combination of flexibility, ownership, and cost-effectiveness - you control your website, your data, and your donor experience without being dependent on any third-party platform. Charitable is built specifically for WordPress, making it a natural choice for the millions of nonprofits already running their websites on the platform.
Zapier
A cloud-based automation platform that connects over 7,000 apps without requiring any coding. In nonprofit fundraising, Zapier is commonly used to automatically sync new donors to a CRM, add donors to email marketing sequences, send internal notifications when a large gift is received, or update spreadsheets with donation data. Charitable Pro integrates with Zapier on its Pro plan, allowing nonprofits to connect their fundraising data to virtually any other tool in their technology stack.
Zoho Flow
A workflow automation platform similar to Zapier, developed by Zoho. It allows nonprofits to connect Charitable Pro with other applications - including Zoho's own suite of CRM, accounting, and communication tools - without writing any code. Zoho Flow is particularly useful for organizations already using Zoho's ecosystem of products. Available as an integration in Charitable Pro's Pro plan.
Ambassador
A supporter who actively promotes your organization and fundraises on your behalf within their own personal and professional networks. Ambassadors go beyond peer-to-peer fundraising pages - they are advocates who bring genuine enthusiasm and credibility to your cause. The most effective ambassador programs give participants clear goals, easy-to-share materials, real-time progress updates, and meaningful recognition for their efforts. Available in Charitable Pro's Pro plan.
Appeal
A targeted, time-limited request for donations tied to a specific need, story, or deadline. Appeals are the engine of most nonprofit fundraising programs - year-end appeals, emergency appeals, matching gift appeals, and campaign launch appeals all follow the same basic structure: a compelling story, a specific ask, a clear deadline, and a concrete description of what the gift will accomplish. The most effective appeals are personal, urgent, and specific.
Campaign Page
A dedicated web page built around a specific fundraising campaign, typically including a campaign description, donation goal progress bar, donation form, donor list or feed, and campaign updates. A well-designed campaign page gives visitors everything they need to understand the cause, feel the urgency, and make a gift - without having to navigate away. Charitable Pro makes it easy to build beautiful, high-converting campaign pages directly within WordPress.
Campaign Showcase
A feature in Charitable Pro that displays multiple campaigns in a clean, visually appealing grid or list format on a single page. The Campaign Showcase allows visitors to browse all active campaigns, compare goals and progress, and choose which cause they want to support. It is particularly useful for organizations running multiple simultaneous campaigns or programs. Fully customizable and embeddable on any page using a block or shortcode.
Campaign Updates
Communications sent to donors and followers to keep them informed about the progress, milestones, and outcomes of a specific campaign. Campaign updates serve as both a stewardship tool and a momentum builder - showing donors that their gifts are making a difference while encouraging new visitors to join a campaign that is clearly moving forward. Available as a feature in Charitable Pro's Pro plan.
Content Marketing
A strategy of creating and distributing valuable, relevant content - blog posts, videos, stories, guides, and reports - to attract, engage, and retain an audience of potential donors, volunteers, and advocates. For nonprofits, content marketing builds awareness, establishes credibility, and creates multiple entry points for people to discover and connect with your mission. A well-maintained blog that answers the questions your donors are asking is one of the most cost-effective long-term marketing investments available.
Donation Feed
A live, real-time display of recent donations shown on a website page, typically including donor names, amounts, comments, and locations. Donation feeds are a powerful social proof tool - they show new visitors that real people are supporting your cause right now, reducing uncertainty and increasing the likelihood of giving. Charitable Pro's Donations Feed block can be placed on any page of your website and configured to show exactly the information that tells the most compelling story.
Landing Page
A standalone web page designed with a single, focused objective - typically to capture a donation, an email signup, or a volunteer registration. Unlike a standard website page, a landing page removes navigation and distractions, keeping the visitor's attention focused entirely on the desired action. High-converting donation landing pages combine a compelling headline, a specific and emotional story, clear social proof, a simple donation form, and a strong call to action.
Matching Campaign
A fundraising campaign where a donor, foundation, or corporate sponsor agrees to match all donations up to a set amount within a specific time period. Matching campaigns are among the most effective fundraising tools available because they double the impact of every gift and create genuine urgency. The key to a successful matching campaign is communicating the match clearly and repeatedly - many donors do not give simply because they do not realize the match exists or is about to expire.
Social Media
Online platforms - including Facebook, Instagram, LinkedIn, X (formerly Twitter), and TikTok - used to share content, build community, and engage supporters. Social media is most effective for nonprofits as a relationship-building and awareness tool rather than a direct fundraising channel. The organizations that raise the most through social media are typically those that use it consistently to share stories, celebrate donors, and build a community of engaged supporters - and then activate that community during specific campaigns and giving days.
Storytelling
Using real stories - from the people you serve, the volunteers in the field, the staff who see impact firsthand - to show donors why their gift matters. Data tells donors what you do; stories make them care. Basically it means communicating your mission, impact, and need through compelling human narratives rather than statistics and organizational updates. Storytelling is one of the most powerful tools in nonprofit fundraising because it creates emotional connection, and people give from emotion, not from spreadsheets. The most effective fundraising stories follow a simple structure: a specific person or community facing a challenge, the intervention your organization provides, and the transformation that results. Donors want to be the hero of that story. Your job is to show them how their gift makes it possible.
501(c)(3)
The section of the United States Internal Revenue Code that defines tax-exempt nonprofit organizations. A 501(c)(3) designation means your organization has been recognized by the IRS as operating for charitable, religious, educational, scientific, or other qualifying purposes - and that donations made to your organization are tax-deductible for the donor. Achieving 501(c)(3) status requires filing Form 1023 or Form 1023-EZ with the IRS, along with supporting documentation about your organization's purpose, governance, and finances. It is the foundation of most nonprofit fundraising in the United States.
Annual Report
A document published by a nonprofit organization each year summarizing its activities, programs, financial performance, and impact over the previous 12 months. Annual reports serve multiple audiences - donors, foundations, government agencies, and the general public - and are one of the most important transparency and stewardship tools available to nonprofits. A well-produced annual report builds trust, celebrates impact, and makes a compelling case for continued support.
Articles of Incorporation
The founding legal document filed with a state government to formally establish a nonprofit corporation. Articles of incorporation typically include the organization's name, purpose, registered agent, initial board members, and provisions for dissolution. Filing articles of incorporation is usually the first formal step in creating a nonprofit organization and is a prerequisite for applying for federal tax-exempt status. Requirements and filing fees vary by state.
Charitable Registration
The process of registering with state authorities to legally solicit donations from residents of that state. Most states require nonprofits to register before they can fundraise within the state, regardless of whether the organization is physically located there. Because online fundraising reaches donors in every state simultaneously, many nonprofits are technically required to register in multiple states. Requirements, fees, and renewal processes vary significantly by state. Failure to register can result in fines and reputational damage.
Conflict of Interest Policy
A written policy that defines what constitutes a conflict of interest for board members and staff, and establishes clear procedures for disclosing and managing conflicts when they arise. A conflict of interest exists when a board member or staff member has a personal, financial, or professional interest that could improperly influence a decision the organization is making. The IRS expects nonprofits to have a conflict of interest policy in place and asks about it on Form 990.
Dissolution
The formal process of closing a nonprofit organization. Dissolution requires board approval, notification of state authorities, settlement of outstanding debts and obligations, and distribution of remaining assets to another tax-exempt organization - nonprofits cannot distribute assets to individuals upon dissolution. The process is governed by state law and varies by jurisdiction. Proper dissolution is important to ensure that board members are not held personally liable for the organization's outstanding obligations.
Employer Identification Number (EIN)
A unique nine-digit number assigned by the IRS to identify a business or nonprofit entity for tax purposes. Also known as a Federal Tax ID Number. Nonprofits need an EIN to open a bank account, apply for tax-exempt status, file tax returns, and process payroll. An EIN is obtained by filing Form SS-4 with the IRS, which can be done online and is typically issued immediately.
Fiduciary Duty
The legal and ethical obligation of board members to act in the best interests of the nonprofit organization and the public it serves. Fiduciary duty encompasses three core responsibilities - the duty of care (making informed, thoughtful decisions), the duty of loyalty (putting the organization's interests above personal interests), and the duty of obedience (ensuring the organization operates in accordance with its mission and legal requirements). Breach of fiduciary duty can result in personal liability for board members.
GDPR (General Data Protection Regulation)
A comprehensive data privacy law enacted by the European Union in 2018 that governs how organizations collect, store, process, and use personal data of individuals in the EU and European Economic Area. Even if your nonprofit is based in the United States, GDPR applies if you collect data from EU residents - including donors, volunteers, or email subscribers. Key GDPR requirements include obtaining explicit consent before collecting personal data, providing clear privacy notices, honoring requests to access or delete personal data, and reporting data breaches promptly. Charitable Pro includes privacy compliance features to help organizations meet these obligations.
Gift Acceptance Policy
A written policy that defines what types of donations your organization will and will not accept, and establishes procedures for evaluating unusual or complex gifts. A gift acceptance policy covers cash, securities, real estate, in-kind donations, planned gifts, and any other asset a donor might offer. Having a clear gift acceptance policy protects the organization from accepting gifts that could create legal, financial, or reputational complications - and gives staff and board members a clear framework for responding to unusual donation offers.
Indemnification
A legal protection that shields board members and officers from personal financial liability for actions taken in good faith on behalf of the organization. Most nonprofit bylaws include an indemnification clause, and many organizations also purchase Directors and Officers (D&O) insurance to provide additional protection. Indemnification is an important board recruitment tool - it assures potential board members that serving the organization will not expose them to personal financial risk.
IRS Determination Letter
The official letter from the Internal Revenue Service confirming that an organization has been granted tax-exempt status under Section 501(c)(3). The determination letter is one of the most important documents a nonprofit possesses - it is required by donors seeking tax deductions, foundations considering grant applications, state charity registration offices, and many other parties. Keep the original in a safe place and maintain digital copies. If the letter is lost, it can be replaced by contacting the IRS.
Lobbying
The practice of attempting to influence legislation or government policy. Nonprofits with 501(c)(3) status are permitted to engage in a limited amount of lobbying, but it cannot constitute a substantial part of their activities. The IRS defines two types of lobbying - direct lobbying, which involves communicating with legislators about specific legislation, and grassroots lobbying, which involves encouraging the public to contact legislators. Nonprofits that want to engage in significant lobbying activity may consider forming a separate 501(c)(4) organization, which faces fewer restrictions.
Privacy Policy
A legal document that explains how your organization collects, uses, stores, and protects the personal information of donors, website visitors, volunteers, and other individuals. A privacy policy is a legal requirement in most jurisdictions and a fundamental component of donor trust. It should clearly explain what data you collect, why you collect it, how long you retain it, whether you share it with third parties, and how individuals can request access to or deletion of their data. Charitable Pro includes privacy compliance features to help organizations meet these requirements.
Private Foundation
A type of 501(c)(3) organization that typically receives its funding from a single source - an individual, family, or corporation - rather than from the general public. Private foundations are subject to stricter IRS regulations than public charities, including minimum annual distribution requirements, restrictions on self-dealing, and excise taxes on investment income. Many private foundations fulfill their charitable purpose primarily by making grants to public charities rather than operating programs directly.
Public Charity
A type of 501(c)(3) organization that receives its funding from a broad base of public support - including individual donors, government grants, and program service revenue. Public charities are subject to less restrictive IRS regulations than private foundations and are the most common form of nonprofit organization. Most nonprofits that raise money from individual donors are public charities.
Quid Pro Quo Contribution
A payment made to a nonprofit that is partly a donation and partly a payment for goods or services received. For example, if a donor pays $200 to attend a fundraising gala and the meal is worth $75, only $125 is tax-deductible. Nonprofits are legally required to provide written disclosure to donors for quid pro quo contributions over $75, stating the amount of the contribution that is deductible. Failure to provide this disclosure can result in penalties.
State Registration
See Charitable Registration above. The requirement to register with state authorities before soliciting donations from residents of that state. Requirements vary significantly by state and are separate from federal 501(c)(3) status.
Tax-Exempt Status
The designation granted by the IRS that exempts a nonprofit organization from paying federal income tax on income related to its exempt purpose. Tax-exempt status also makes donations to the organization tax-deductible for donors, which is one of the most powerful incentives for charitable giving. Tax-exempt status is not automatic - it must be applied for and maintained through ongoing compliance with IRS requirements, including annual filing of Form 990.
Whistleblower Policy
A written policy that protects employees, volunteers, and board members who report suspected illegal activity, fraud, or violations of organizational policy from retaliation. The IRS expects nonprofits to have a whistleblower policy in place and asks about it on Form 990. A strong whistleblower policy is both a legal safeguard and a cultural signal - it tells everyone in the organization that integrity is taken seriously and that speaking up is safe.
Accounts Payable
The money an organization owes to vendors, suppliers, and service providers for goods and services already received but not yet paid for. Accounts payable represents a short-term liability on your balance sheet. Managing accounts payable carefully - paying invoices on time, maintaining accurate records, and reconciling regularly - is a basic but important component of nonprofit financial health.
Accounts Receivable
Money owed to your organization by others - typically outstanding pledges, grant payments, government contracts, or program service fees that have been earned but not yet received. Accounts receivable represents a short-term asset on your balance sheet. Tracking outstanding receivables carefully and following up promptly on overdue amounts is essential for maintaining healthy cash flow.
Administrative Costs
Expenses related to the general management and administration of the organization - including executive leadership, finance, human resources, legal, and information technology. Administrative costs are sometimes referred to as overhead. There is a persistent and harmful myth in the nonprofit sector that administrative costs should be minimized at all costs. In reality, adequate investment in administration is essential for organizational effectiveness, accountability, and long-term sustainability.
Audit
A formal, independent examination of an organization's financial statements conducted by a certified public accountant. An audit provides the highest level of assurance that financial statements are accurate, complete, and prepared in accordance with generally accepted accounting principles. Many foundations and government funders require audited financial statements as part of their grant application process. Some states require audits for nonprofits above certain revenue thresholds. An audit is distinct from a financial review, which provides a lower level of assurance at a lower cost.
Balance Sheet
A financial statement that provides a snapshot of an organization's financial position at a specific point in time, showing what the organization owns (assets), what it owes (liabilities), and the difference between the two (net assets). For nonprofits, the balance sheet is sometimes called a Statement of Financial Position. It is one of the four core financial statements that nonprofits produce and is reviewed regularly by board members, auditors, and funders.
Budget
A financial plan that estimates expected revenue and expenses over a specific period - typically a fiscal year. The budget is the organization's financial roadmap, translating strategic priorities into dollar amounts. An effective nonprofit budget is built from the bottom up, grounded in realistic revenue projections, reviewed and approved by the board, and monitored regularly throughout the year. Significant variances between budget and actual results should be understood and addressed promptly.
Cash Flow
The movement of money into and out of your organization over a specific period. An organization can be financially healthy on paper - with strong revenue and a balanced budget - and still face a cash flow crisis if income arrives later than expenses come due. Nonprofit cash flow challenges are common, particularly for organizations that rely heavily on government contracts or annual fund campaigns. Maintaining a cash reserve and monitoring cash flow projections regularly are essential financial management practices.
Chart of Accounts
A complete list of every financial account used in an organization's accounting system, organized by category - assets, liabilities, net assets, revenue, and expenses. The chart of accounts is the foundation of your financial reporting system. A well-designed chart of accounts makes it easy to track spending by program, generate accurate financial reports, and prepare Form 990. Most nonprofit accounting software comes with a default chart of accounts that can be customized to fit your organization's needs.
Deficit
The amount by which expenses exceed revenue in a given period. Running a deficit is not always a crisis - organizations sometimes intentionally spend reserves to fund strategic initiatives or bridge a temporary funding gap. However, persistent deficits are a serious warning sign that requires board attention and corrective action. Understanding the cause of a deficit - whether it reflects a structural imbalance, a timing issue, or a one-time event - is essential to responding appropriately.
Endowment
A fund established by a nonprofit organization where the principal is invested and preserved permanently, and only the investment returns are spent on organizational programs and operations. Endowments provide long-term financial stability and reduce dependence on annual fundraising. Building an endowment requires a planned giving program, a patient long-term investment strategy, and clear policies governing how investment returns can be used. Many endowments specify that a fixed percentage - typically 4-5% - of the fund's value can be spent each year.
Fiscal Sponsorship
An arrangement where an established 501(c)(3) organization agrees to provide legal and financial oversight for a project or initiative that does not yet have its own nonprofit status. The fiscal sponsor accepts tax-deductible donations on behalf of the sponsored project and takes legal responsibility for ensuring funds are used in accordance with their tax-exempt purpose. Fiscal sponsorship allows new initiatives to begin raising charitable contributions before completing the lengthy 501(c)(3) application process.
Fiscal Year
The 12-month accounting period used by an organization for financial reporting and tax purposes. A nonprofit's fiscal year does not have to align with the calendar year - many organizations use a fiscal year that ends on June 30, September 30, or another date that better reflects their programmatic or fundraising cycle. The fiscal year end is when annual audits are conducted, Form 990 is prepared, and year-end financial statements are produced.
Fixed Costs
Expenses that remain constant regardless of the organization's level of activity - rent, salaries, insurance, and software subscriptions are common examples. Understanding your fixed cost base is essential for financial planning because these costs must be covered regardless of whether fundraising performs as expected. Fixed costs represent the minimum revenue the organization must generate to remain operational.
Form 990
The annual information return filed with the IRS by most tax-exempt organizations. The Form 990 provides detailed information about the organization's finances, governance, programs, and executive compensation - and is publicly available through databases like GuideStar/Candid and ProPublica. A well-prepared Form 990 is both a legal requirement and a transparency tool that donors, foundations, and watchdog organizations use to evaluate organizational health and integrity. Organizations with gross receipts under $50,000 may file the simplified Form 990-N.
Fund Accounting
An accounting method used by nonprofits to track and report on money according to the restrictions placed on its use. Unlike for-profit accounting, which focuses on profitability, fund accounting separates resources into distinct funds - unrestricted, temporarily restricted, and permanently restricted - to ensure that donor restrictions are honored and reported accurately. Fund accounting is a legal requirement for nonprofits and is reflected in all financial statements and annual reporting.
Fundraising Expenses
Costs directly associated with raising money - including direct mail production, event costs, staff time dedicated to fundraising, and platform fees. The ratio of fundraising expenses to total revenue raised is a commonly used efficiency metric, though it should be interpreted carefully - organizations with strong major gift programs or large planned giving portfolios may show lower fundraising expense ratios than those investing in donor acquisition, even if both are operating efficiently.
Grant
A financial award given by a foundation, government agency, or corporation to a nonprofit organization to support a specific program, project, or operating need. Grants are typically subject to reporting requirements and restrictions on how the funds can be used. Securing grant funding requires a compelling application, a track record of program effectiveness, and the organizational capacity to manage and report on restricted funds. Grant revenue can be an important component of a diversified funding base but should rarely be the sole source of organizational support.
In-Kind Donation
A non-cash gift of goods or services rather than money. Examples include donated office space, professional services, food, equipment, or volunteer labor. In-kind donations have real financial value and should be recorded in your accounting system at fair market value. They do not flow through your donation platform but should be acknowledged and receipted just like cash gifts. Depending on their nature and value, in-kind donations may need to be disclosed in your Form 990.
Indirect Costs
Expenses that support the organization's overall operations rather than being directly attributable to a specific program - sometimes called overhead or administrative costs. Indirect costs include executive leadership, finance, human resources, facilities, and information technology. Many government grants and foundation awards include an indirect cost rate that allows nonprofits to recover a percentage of direct program costs as a contribution to indirect expenses. Negotiating a fair indirect cost rate is an important but often overlooked aspect of grant management.
Investment Policy
A written document that establishes guidelines for how an organization's financial assets - including endowment funds and operating reserves - will be invested. An investment policy typically defines the organization's risk tolerance, asset allocation targets, performance benchmarks, and governance procedures for investment decisions. Having a clear investment policy protects the board from making ad hoc investment decisions and ensures that assets are managed in a disciplined, fiduciary manner.
Liquidity
The ability of an organization to meet its short-term financial obligations using available cash and assets that can be quickly converted to cash. A nonprofit with strong liquidity can pay its bills, make payroll, and weather unexpected expenses without disruption. Liquidity is distinct from solvency - an organization can be solvent (assets exceed liabilities) but still face a liquidity crisis if its assets are not readily accessible. Maintaining an adequate operating reserve is the primary tool for managing liquidity risk.
Net Assets
The difference between an organization's total assets and total liabilities - the nonprofit equivalent of equity in a for-profit business. Net assets are classified into three categories: unrestricted net assets (available for any purpose), temporarily restricted net assets (subject to donor-imposed time or purpose restrictions), and permanently restricted net assets (endowment principal that must be maintained in perpetuity). Tracking net assets accurately is a fundamental requirement of nonprofit financial reporting.
Operating Budget
The financial plan for an organization's day-to-day revenue and expenses over a fiscal year, excluding capital expenditures. The operating budget is the primary financial management tool for most nonprofits - it sets expectations for income and spending, establishes accountability for department heads and program managers, and provides the baseline against which actual financial performance is measured throughout the year.
Operating Reserve
A fund of unrestricted cash set aside to protect the organization against unexpected revenue shortfalls or expenses. The most commonly recommended operating reserve target is three to six months of operating expenses, though the appropriate level varies by organization. An operating reserve is one of the most important indicators of nonprofit financial health - organizations with adequate reserves can weather funding disruptions, invest in strategic opportunities, and avoid the crisis-driven decision-making that characterizes financially fragile organizations.
Overhead
A commonly used term for the administrative and fundraising costs of a nonprofit organization - expenses not directly attributable to program delivery. The nonprofit sector has long struggled with an unhealthy fixation on overhead ratios, with donors and watchdog organizations sometimes using a low overhead percentage as a proxy for organizational effectiveness. In reality, adequate investment in infrastructure, talent, technology, and financial management is essential for long-term organizational health. Leading voices in the sector - including GuideStar/Candid, Charity Navigator, and the BBB Wise Giving Alliance - have publicly called for moving beyond overhead as a measure of nonprofit effectiveness.
Program Expenses
Costs directly associated with delivering the organization's programs and services - the work the nonprofit exists to do. Program expenses are typically the largest category of spending for a healthy nonprofit and are reported separately from administrative and fundraising expenses on financial statements and Form 990. The ratio of program expenses to total expenses is one of the most commonly cited measures of nonprofit efficiency, though it should be interpreted in context.
Restricted Funds
Donations or grants given with specific conditions attached by the donor or funder, designating them for a particular program, project, time period, or purpose. Restricted funds must be tracked separately and used only in accordance with the donor's or funder's stated restrictions. Spending restricted funds on unauthorized purposes - even inadvertently - is a serious legal and ethical violation that can damage donor trust, jeopardize funding relationships, and attract regulatory scrutiny.
Revenue Diversification
The practice of building a funding base that draws from multiple sources - individual donors, major gifts, recurring giving, grants, earned revenue, events, and planned gifts - rather than depending heavily on any single source. Revenue diversification reduces financial risk and increases organizational resilience. An organization that receives 80% of its funding from a single grant or donor is extremely vulnerable to disruption if that relationship changes. Building a diversified revenue base takes time but is one of the most important long-term investments a nonprofit can make.
Statement of Activities
A financial statement that summarizes an organization's revenue, expenses, and changes in net assets over a specific period - the nonprofit equivalent of an income statement or profit and loss statement. The Statement of Activities shows whether the organization ran a surplus or deficit during the period and how net assets changed as a result. It is one of the four core financial statements produced by nonprofits and is reviewed regularly by board members, auditors, and funders.
Statement of Cash Flows
A financial statement that tracks the actual movement of cash into and out of the organization over a specific period, organized into three categories - operating activities, investing activities, and financing activities. The Statement of Cash Flows is essential for understanding liquidity and identifying potential cash flow problems that may not be visible in the Statement of Activities. An organization can show a surplus on its Statement of Activities and still face a cash flow crisis if revenue is being recognized before it is actually received.
Surplus
The amount by which revenue exceeds expenses in a given period. Running a modest surplus is generally a sign of financial health - it builds reserves, provides a buffer against future uncertainty, and creates capacity for strategic investment. Nonprofits sometimes feel uncomfortable with surpluses, fearing that donors will perceive them as not needing additional support. In reality, a well-managed nonprofit that consistently operates with a modest surplus is far more effective and sustainable than one that perpetually operates at the edge of a deficit.
Unrestricted Funds
Donations or revenue received without any conditions on how they can be used. Unrestricted funds are the most flexible and valuable type of revenue for a nonprofit because they can be directed wherever the organization's needs are greatest - including administrative costs, capacity building, and emerging program needs that restricted grants cannot cover. Actively communicating to donors the value and impact of unrestricted giving is an important but often underprioritized fundraising strategy.
Variable Costs
Expenses that fluctuate in proportion to the organization's level of activity - program supplies, event catering, printing, and contractor costs are common examples. Understanding the distinction between fixed and variable costs is essential for financial planning, pricing program services, and evaluating the true cost of scaling programs up or down.
Advisory Board
A group of individuals who provide strategic advice, expertise, and connections to a nonprofit organization without holding formal governance authority. Unlike the board of directors, advisory board members do not have legal fiduciary responsibilities and do not vote on organizational decisions. Advisory boards are most valuable when they bring specific expertise - in a particular program area, industry, or community - that complements the skills of the governing board.
Board Chair
The elected leader of the board of directors, responsible for presiding over board meetings, setting the board agenda in partnership with the executive director, facilitating board decision-making, and serving as the primary liaison between the board and staff leadership. The board chair plays a critical role in setting the tone for board culture and ensuring that the board operates effectively as a governance body.
Board Committee
A subgroup of the board of directors assigned responsibility for a specific governance function - such as finance, audit, executive compensation, fundraising, or governance and nominations. Committees allow the board to do more detailed work in specific areas than would be possible in full board meetings. Most committees include both board members and non-board volunteers with relevant expertise. Committee recommendations are typically brought to the full board for formal approval.
Board Development
The ongoing process of recruiting, orienting, engaging, and retaining effective board members. Board development is one of the most important and most neglected governance functions in the nonprofit sector. An effective board development process includes maintaining a skills matrix to identify gaps, building a pipeline of prospective board members, providing meaningful orientation for new members, creating opportunities for ongoing learning and engagement, and conducting regular board self-assessments.
Board of Directors
The governing body of a nonprofit organization, responsible for setting strategic direction, ensuring financial accountability, hiring and evaluating the executive director, and fulfilling the organization's legal and ethical obligations. Board members serve as volunteers without compensation in most nonprofits and are collectively responsible for the organization's legal compliance, financial health, and mission effectiveness. An effective board brings diverse expertise, strong networks, genuine commitment to the mission, and a clear understanding of the distinction between governance and management.
Board Retreat
A dedicated, extended meeting - typically held off-site and lasting one to two days - where the board steps back from routine governance business to engage in strategic planning, relationship building, and deeper discussion of organizational priorities. Board retreats are one of the most effective tools for building board cohesion, aligning around strategy, and reinvigorating board engagement. Well-facilitated retreats can transform a passive board into an active and effective governance partner.
Bylaws
The internal governing document of a nonprofit organization that outlines how the organization will be structured and operated. Bylaws typically cover board composition and terms, officer roles and responsibilities, meeting requirements, voting procedures, conflict of interest policies, and amendment processes. Bylaws are adopted by the board at the organization's founding and should be reviewed periodically - typically every three to five years - to ensure they reflect the organization's current structure and comply with applicable state law.
Capacity Building
Investments in the organizational infrastructure, systems, skills, and leadership that enable a nonprofit to fulfill its mission more effectively and sustainably over time. Capacity building encompasses technology upgrades, staff training, financial systems development, strategic planning, board development, and communications infrastructure. Capacity building is often underfunded because it does not directly deliver program services - but organizations that invest in capacity consistently outperform those that do not.
Chief Executive Officer (CEO) / Executive Director
The senior staff leader of a nonprofit organization, responsible for day-to-day operations, staff management, program delivery, fundraising, external relations, and implementing the strategic direction set by the board. The title varies by organization - Executive Director is more common in smaller nonprofits, while CEO is used more frequently in larger organizations. The executive director reports to and is accountable to the board of directors.
Diversity, Equity, and Inclusion (DEI)
A framework for ensuring that an organization's leadership, staff, programs, and culture reflect and serve the full diversity of the communities it works with. In governance terms, DEI means actively working to build a board and staff that brings diverse perspectives, lived experiences, and identities to the table - and creating an organizational culture where all voices are heard and valued. Organizations with diverse leadership consistently make better decisions and build stronger community trust.
Executive Committee
A small subgroup of the board - typically including the board chair, vice chair, treasurer, and secretary - authorized to act on behalf of the full board between regular meetings when time-sensitive decisions need to be made. The executive committee's authority is defined and limited by the bylaws. In some organizations, the executive committee becomes a de facto inner circle that undermines full board engagement - a dynamic that should be actively guarded against.
Founder's Syndrome
A pattern that occurs when the founder of a nonprofit organization retains disproportionate control over decision-making as the organization grows - sometimes to the detriment of organizational health, board effectiveness, and staff morale. Founder's syndrome can manifest as resistance to board oversight, difficulty delegating, conflating the founder's personal identity with the organization's mission, and inability to plan for leadership succession. Recognizing and addressing founder's syndrome early is essential for long-term organizational sustainability.
Governance
The system of rules, practices, and processes by which a nonprofit organization is directed and controlled. Governance encompasses board structure and composition, decision-making processes, financial oversight, legal compliance, executive accountability, and the policies that guide organizational behavior. Strong governance is not bureaucracy - it is the foundation of organizational integrity, donor trust, and long-term sustainability.
Mission Drift
The gradual shift of an organization's programs, activities, or priorities away from its core mission - often driven by funding opportunities, board pressure, or staff interests rather than genuine strategic intent. Mission drift is one of the most common and most damaging organizational challenges in the nonprofit sector. It dilutes impact, confuses donors, strains staff, and can ultimately jeopardize tax-exempt status. Regular strategic planning and strong board governance are the primary defenses against mission drift.
Mission Statement
A concise, clear statement of an organization's purpose - what it does, who it serves, and why it exists. A strong mission statement is specific enough to guide decision-making and exclude activities that fall outside the organization's focus, while broad enough to allow for program evolution and growth. The mission statement is the foundational document of every nonprofit organization - it guides strategic planning, informs fundraising, and provides the standard against which all organizational decisions should be evaluated.
Nonprofit Corporation
A legal entity incorporated under state law for purposes other than generating profit for shareholders or owners. Nonprofit corporations can earn revenue, employ staff, own property, and enter into contracts - but any surplus must be reinvested in the organization's mission rather than distributed to individuals. Most charitable nonprofits in the United States are incorporated as nonprofit corporations and then apply separately for federal tax-exempt status under Section 501(c)(3).
Officers
Board members elected or appointed to specific leadership roles within the board - typically including a chair or president, vice chair or vice president, treasurer, and secretary. Officers have specific responsibilities defined in the bylaws and play a more active governance role than general board members. The treasurer oversees financial oversight and reporting. The secretary maintains official organizational records and meeting minutes.
Organizational Chart
A visual diagram that shows the structure of an organization - including reporting relationships between positions, departments, and teams. For nonprofits, the organizational chart typically shows the board of directors at the top, the executive director reporting to the board, and all staff positions organized beneath the executive director.
Policy
A formal written statement that establishes an organization's position on a specific issue and guides decision-making and behavior. Nonprofits typically maintain a range of policies covering financial management, human resources, conflict of interest, gift acceptance, whistleblower protection, data privacy, and social media use. Policies provide consistency, reduce risk, and protect the organization by establishing clear standards of conduct.
Quorum
The minimum number of board members that must be present for the board to conduct official business and make binding decisions. Quorum requirements are defined in the bylaws - typically a majority of board members. If a quorum is not present at a meeting, any decisions made are not legally binding. Maintaining strong board attendance and engagement is essential for ensuring that the board can consistently achieve quorum and conduct effective governance.
Secretary
A board officer responsible for maintaining official organizational records - including board meeting minutes, governing documents, and official correspondence. The secretary ensures that meeting minutes accurately reflect board decisions and are approved and archived properly. In some organizations, the secretary role is filled by a staff member rather than a board member, though the board retains ultimate responsibility for the accuracy and integrity of official records.
Stakeholders
All individuals, groups, and organizations that have an interest in or are affected by a nonprofit's work - including donors, clients, volunteers, staff, board members, community partners, government agencies, and the broader public. Effective nonprofit governance requires understanding and balancing the interests of diverse stakeholder groups. Stakeholder engagement - through surveys, focus groups, community meetings, and advisory structures - is a key component of strategic planning and program development.
Strategic Plan
A formal document that defines an organization's long-term goals, priorities, and the strategies it will pursue to achieve them - typically covering a three to five year horizon. A strategic plan is developed through a structured process involving board, staff, and stakeholder input and is approved by the board of directors. It provides a shared roadmap for organizational decision-making, resource allocation, and performance measurement. A strategic plan that sits on a shelf is worse than no plan at all - its value lies in active use as a management and governance tool.
Succession Planning
The process of identifying and developing internal talent to fill key leadership roles - particularly the executive director position - in the event of a planned or unplanned transition. Succession planning is one of the most neglected governance responsibilities in the nonprofit sector. An organization without a succession plan is one unexpected departure away from a leadership crisis. The board of directors is responsible for ensuring that a succession plan exists and is kept current.
Term Limits
Defined limits on the number of consecutive terms a board member can serve. Term limits are a governance best practice because they ensure regular board renewal, prevent entrenchment, create opportunities for new perspectives and skills, and provide a graceful exit mechanism for underperforming board members. Most term limit structures allow board members to serve two or three consecutive terms before stepping off, with the option to return after a defined hiatus period.
Treasurer
A board officer responsible for overseeing the organization's financial management and reporting to the board on financial matters. The treasurer reviews financial statements, monitors budget performance, oversees the audit process, and ensures that the organization maintains adequate financial controls. In larger organizations, the treasurer chairs the finance committee and serves as the primary board liaison to the chief financial officer.
Vision Statement
An aspirational statement that describes the future state the organization is working to create - the world as it would look if the organization fully achieved its mission. Where the mission statement describes what the organization does, the vision statement describes why it matters and what success ultimately looks like. A strong vision statement is inspiring, specific enough to be meaningful, and ambitious enough to motivate.
Volunteers
Individuals who contribute their time, skills, and energy to an organization without financial compensation. Volunteers are an essential resource for most nonprofits - extending organizational capacity, building community connection, and bringing skills and perspectives that staff alone cannot provide. Effective volunteer management - including clear role definitions, meaningful work, adequate training, consistent recognition, and genuine appreciation - is essential for retaining volunteers and maximizing their contribution to the mission.
ActiveCampaign
A powerful email marketing and marketing automation platform widely used by nonprofits for donor communication, automated sequences, and CRM functionality. ActiveCampaign combines email marketing, automation, and contact management in a single platform, making it particularly useful for organizations that want to build sophisticated donor journeys without investing in a separate CRM. Charitable Pro integrates natively with ActiveCampaign, automatically adding new donors to your lists and triggering automated sequences based on donation activity.
Appeal Letter
A written fundraising request sent to donors or prospects asking for a specific gift in support of a specific need or campaign. Appeal letters can be sent by email or direct mail and are one of the oldest and most reliable tools in nonprofit fundraising. The most effective appeal letters lead with a compelling human story, make a specific ask tied to a concrete impact, create genuine urgency, and make it as easy as possible for the reader to respond. Personalization - using the donor's name, referencing their giving history, and tailoring the ask amount - significantly improves response rates.
Bounce Rate
The percentage of emails that could not be delivered to the recipient's inbox. There are two types of bounces - hard bounces, which occur when an email address is invalid or does not exist, and soft bounces, which occur when a valid address is temporarily unavailable. Hard bounces should be removed from your list immediately, as sending to invalid addresses damages your sender reputation and can result in your emails being filtered as spam. Maintaining a clean, regularly updated email list is one of the most important email marketing hygiene practices.
Campaign Monitor
An email marketing platform known for its clean design tools and reliable deliverability, used by nonprofits for newsletters, appeals, and automated donor communications. Charitable Pro integrates natively with Campaign Monitor, allowing new donors to be automatically added to your lists and segmented based on their giving behavior.
CAN-SPAM Act
A US law that establishes requirements for commercial email and gives recipients the right to opt out of receiving messages. Key requirements include including a valid physical postal address in every email, providing a clear and conspicuous unsubscribe mechanism, honoring opt-out requests within 10 business days, and not using deceptive subject lines or sender information. While CAN-SPAM applies primarily to commercial email, nonprofits sending fundraising appeals and newsletters should understand and comply with its requirements to avoid penalties and protect deliverability.
Click Rate
The percentage of email recipients who clicked on a link within your email. Click rate is a measure of how engaging and relevant your email content is - recipients who click are actively interested in learning more or taking action. Industry average click rates for nonprofit emails typically range from 2% to 5%, though this varies significantly by audience, content type, and call to action. Improving click rate usually requires clearer calls to action, more relevant content, and better segmentation.
Click-to-Open Rate (CTOR)
The percentage of people who opened your email and then clicked a link within it. While open rate measures how many people were interested enough to open the email, click-to-open rate measures how compelling the content was once they did. CTOR is a more precise measure of content effectiveness than click rate alone because it isolates the performance of the email content from the performance of the subject line.
Deliverability
The ability of your emails to reach your recipients' inboxes rather than being filtered into spam or junk folders. Deliverability is influenced by a range of factors including sender reputation, list quality, email authentication settings, content quality, and engagement rates. Poor deliverability is one of the most common and most damaging email marketing problems - an email that never reaches the inbox cannot build relationships or drive donations. Maintaining a clean list, using a reputable email platform, and monitoring engagement rates are the primary tools for protecting deliverability.
Drip Campaign
A series of pre-written emails sent automatically to a subscriber or donor over a defined period of time, triggered by a specific action or event. Common nonprofit drip campaigns include new donor welcome sequences, lapsed donor reactivation series, event follow-up sequences, and recurring giving upgrade journeys. The term drip refers to the idea of delivering information gradually over time rather than all at once - allowing relationships to develop naturally through consistent, relevant touchpoints.
Email List
The database of email addresses belonging to donors, prospects, volunteers, and other supporters who have opted in to receive communications from your organization. Your email list is one of your most valuable organizational assets - unlike social media followers, your email list is owned by you and cannot be taken away by a platform algorithm change. Building, maintaining, and regularly cleaning your email list is a fundamental nonprofit communication practice.
Email Marketing
The use of email to communicate with donors, prospects, volunteers, and supporters for the purposes of relationship building, donor stewardship, fundraising appeals, event promotion, and impact reporting. Email consistently delivers the highest return on investment of any digital marketing channel for nonprofits - outperforming social media for donor acquisition, retention, and reactivation. Charitable Pro integrates natively with Mailchimp, ActiveCampaign, MailerLite, Campaign Monitor, MailPoet, and Mailster.
Email Segmentation
The practice of dividing your email list into distinct groups based on shared characteristics - giving level, giving frequency, geographic location, program interest, or engagement history - and sending tailored communications to each group rather than sending the same message to everyone. Segmented emails consistently outperform unsegmented emails because they feel more relevant and personal to the recipient. At its simplest, segmentation means not sending a first-time donor the same message you send a ten-year major donor.
Email Sequence
A series of emails sent to a subscriber or donor in a defined order over a specific period of time. Email sequences are typically automated and triggered by a specific action - making a first donation, signing up for a newsletter, registering for an event, or lapsing from giving. A well-designed email sequence moves the recipient through a journey - from introduction to engagement to commitment - in a way that feels personal and relevant rather than automated and generic.
Hard Bounce
An email that could not be delivered because the recipient's email address is invalid, does not exist, or has been permanently closed. Hard bounces should be removed from your email list immediately. Continuing to send to hard-bounced addresses damages your sender reputation and signals to email providers that you are not maintaining a clean list - which can result in your emails being filtered as spam across your entire list.
List Hygiene
The practice of regularly cleaning and maintaining your email list to remove invalid addresses, hard bounces, unsubscribes, and chronically unengaged contacts. Good list hygiene protects your sender reputation, improves deliverability, and ensures that your engagement metrics reflect genuine interest rather than being diluted by contacts who will never open your emails.
Mailchimp
One of the most widely used email marketing platforms in the world, popular among nonprofits for its ease of use, generous free plan, and broad integration ecosystem. Mailchimp offers email design tools, audience segmentation, automation, and basic reporting. Charitable Pro integrates natively with Mailchimp, automatically syncing new donors to your audience and enabling targeted campaigns based on donation history and behavior.
MailerLite
A straightforward and affordable email marketing platform known for its clean interface and strong deliverability. MailerLite is a popular choice for smaller nonprofits that need reliable email marketing tools without the complexity or cost of larger platforms. Charitable Pro integrates natively with MailerLite, allowing new donors to be automatically added to your lists and segmented based on their giving activity.
MailPoet
A WordPress-native email marketing plugin that allows nonprofits to build, send, and automate email campaigns directly from their WordPress dashboard. MailPoet is particularly well suited for organizations already running their website on WordPress who want to manage email marketing in the same environment as their donation forms and donor data. Charitable Pro integrates natively with MailPoet.
Mailster
A self-hosted email newsletter plugin for WordPress that allows organizations to send email campaigns directly from their own WordPress website and server. Unlike cloud-based email platforms, Mailster gives organizations full control over their email infrastructure and subscriber data. Charitable Pro integrates natively with Mailster, making it a strong option for organizations that prefer to keep all of their tools within their own WordPress environment.
Newsletter
A regular email communication sent to subscribers to update them on organizational news, program developments, impact stories, upcoming events, and fundraising campaigns. A nonprofit newsletter is one of the most important relationship-building tools available - it keeps your community engaged between campaigns and ensures that your organization stays top of mind when donors are making giving decisions. The most effective nonprofit newsletters lead with stories rather than organizational updates and are written in a warm, personal voice.
Open Rate
The percentage of email recipients who opened a specific email. Open rate is typically the first metric evaluated when assessing email performance - it measures how compelling your subject line and sender name were at the moment the email arrived in the recipient's inbox. Industry average open rates for nonprofit emails typically range from 25% to 35%. It is worth noting that open rate tracking has become less reliable since Apple's Mail Privacy Protection feature was introduced in 2021, which artificially inflates open rates for Apple Mail users.
Opt-In
The process by which an individual gives explicit permission to receive email communications from your organization. Opt-in is both a legal requirement in many jurisdictions - including under GDPR and CAN-SPAM - and a best practice for list quality. A donor who actively opts in to receive your communications is far more likely to engage with them than one who was added to your list without their explicit consent. Always make it easy for donors to opt in to communications at the point of donation.
Opt-Out / Unsubscribe
The process by which an email recipient removes themselves from your mailing list. Including a clear and functional unsubscribe link in every email is a legal requirement under CAN-SPAM and GDPR. Honoring unsubscribe requests promptly is both a legal obligation and a basic respect for your donors' communication preferences. A donor who unsubscribes from email may still be a donor - losing their email permission does not mean losing the relationship.
Personalization
The practice of tailoring email content to the individual recipient - using their name, referencing their giving history, acknowledging their specific program interests, and calibrating the ask amount to their previous giving level. Personalization is one of the most effective tools for improving email engagement and fundraising response rates. At its simplest, personalization means addressing the donor by name and thanking them for their specific most recent gift.
Re-engagement Campaign
A targeted email series sent to subscribers or donors who have not opened, clicked, or given within a defined period - typically six to twelve months. Re-engagement campaigns acknowledge the lapse, remind the recipient of the impact of their past support, and invite them to reconnect with the organization. Contacts who do not respond to a re-engagement campaign should typically be removed from the active list to protect deliverability and list quality.
Sender Reputation
A score assigned by email providers to your sending domain and IP address based on your sending behavior and recipient engagement. A strong sender reputation means your emails are more likely to be delivered to the inbox. A poor sender reputation - caused by high bounce rates, spam complaints, or low engagement - means your emails are more likely to be filtered as spam or rejected entirely.
Soft Bounce
An email that could not be delivered temporarily - typically because the recipient's inbox is full, their server is temporarily unavailable, or the email was too large. Unlike hard bounces, soft bounces do not necessarily indicate a permanently invalid address. Most email platforms will automatically retry soft bounces several times before treating them as hard bounces.
Subject Line
The first line of text a recipient sees when your email arrives in their inbox - before they decide whether to open it. The subject line is the single most important factor in email open rates. Effective nonprofit subject lines are specific, create genuine curiosity or urgency, and avoid spam trigger words. Testing different subject lines through A/B testing is one of the most accessible and highest-impact email optimization strategies available.
Unsubscribe Rate
The percentage of email recipients who unsubscribe from your list after receiving a specific email. A healthy unsubscribe rate is typically below 0.5%. Higher unsubscribe rates suggest that your content is not meeting recipients' expectations - either because it is too frequent, not relevant enough, or not delivering the value subscribers signed up for. A spike in unsubscribe rate after a specific campaign is a signal worth investigating.
Welcome Email
The first email sent to a new donor or subscriber immediately after they make their first gift or sign up for your list. The welcome email is the most important email you will ever send - it sets the tone for the entire relationship and significantly influences whether the recipient will remain engaged. An effective nonprofit welcome email thanks the donor specifically and warmly, confirms the impact of their gift, introduces the organization's mission and community, sets expectations for future communications, and makes it easy to take a next step.
A/B Testing
A method of comparing two versions of a page, form, email, or campaign element to determine which performs better with your audience. In fundraising, A/B tests are commonly used to compare donation form layouts, ask amounts, subject lines, button colors, headlines, and campaign page designs. A/B testing removes guesswork from optimization decisions and allows you to make incremental, data-driven improvements over time. Even small improvements in conversion rate can have a significant impact on total revenue at scale.
Attribution
The process of identifying which marketing activities, channels, or touchpoints led a donor to make a gift. Attribution answers the question: how did this donor find us, and what motivated them to give? Common attribution models include first-touch attribution, which credits the first interaction a donor had with your organization, and last-touch attribution, which credits the final interaction before the gift was made. Understanding attribution helps you invest more in the channels and campaigns that are actually driving donations.
Average Gift Size
The mean donation amount across all gifts received in a specific period, calculated by dividing total donation revenue by the number of donations. Average gift size is a fundamental fundraising metric that serves as a baseline for evaluating campaign performance, setting ask amounts, and projecting revenue. Strategies for increasing average gift size include using suggested donation amounts anchored above the current average, offering matching gift incentives, and personalizing ask amounts based on each donor's giving history.
Benchmark
A standard or point of reference against which performance is measured. In nonprofit fundraising, benchmarks can be internal - comparing this year's results to last year's - or external, comparing your organization's metrics to industry averages for organizations of similar size, type, or mission area. Benchmarking helps organizations understand whether their performance is strong, average, or below expectations, and provides context for interpreting data that might otherwise be difficult to evaluate in isolation.
Bounce Rate (Website)
The percentage of website visitors who land on a page and leave without taking any action or navigating to another page. A high bounce rate on a donation page suggests that visitors are not finding what they expected, that the page is not compelling enough to prompt action, or that there is a technical issue preventing them from completing a donation. Reducing bounce rate on donation pages - through clearer messaging, stronger social proof, faster load times, and simpler forms - directly improves fundraising conversion.
Campaign Performance
A broad term referring to the overall results of a specific fundraising campaign, typically measured across a combination of metrics including total revenue raised, number of donors, average gift size, conversion rate, donor retention from the previous campaign, and return on investment. Reviewing campaign performance systematically after every campaign - and comparing results to previous campaigns and stated goals - is one of the most important practices for continuous fundraising improvement.
Conversion Rate
The percentage of visitors to a donation page who complete a donation. Conversion rate is one of the most important metrics for evaluating the effectiveness of your donation forms and campaign pages. Industry averages for nonprofit donation pages typically range from 17% to 26%, though this varies significantly by traffic source, page design, ask amount, and audience. Improving conversion rate through clearer copy, stronger social proof, simpler forms, and faster load times has a direct and immediate impact on fundraising revenue without requiring any increase in traffic.
Conversion Tracking
The practice of measuring how many website visitors complete a specific desired action - in fundraising, most commonly the successful submission of a donation form. Conversion tracking connects traffic sources and marketing activities to actual completed donations, answering the question: which of your campaigns, emails, and ads are driving real revenue - not just visits? Implementing conversion tracking through Google Analytics allows you to calculate conversion rates per source, evaluate paid advertising ROI, and identify which campaign pages are underperforming. Charitable Pro integrates with Google Analytics for conversion tracking on the Pro plan and above.
Cost Per Dollar Raised (CPDR)
A measure of fundraising efficiency that calculates how much it costs to raise one dollar of revenue. Calculated by dividing total fundraising expenses by total revenue raised. A CPDR of $0.20 means it costs 20 cents to raise one dollar - generally considered efficient for most fundraising channels. CPDR varies significantly by channel and campaign type - major gift fundraising typically has a very low CPDR while donor acquisition campaigns often have a higher CPDR that is justified by the long-term value of the donors acquired.
Cost Per New Donor
The total cost of acquiring a single new donor through a specific channel or campaign, calculated by dividing total acquisition costs by the number of new donors acquired. Cost per new donor is most meaningful when evaluated alongside donor lifetime value - a higher acquisition cost can be entirely justified if the donors acquired have strong retention rates and long-term giving potential. Tracking cost per new donor by channel helps you invest more in the acquisition channels that deliver the best long-term return.
Dashboard
A visual display of key metrics and data points that provides a real-time overview of organizational or campaign performance. A well-designed fundraising dashboard shows the most important metrics at a glance - total revenue, donor count, average gift size, conversion rate, campaign progress, and year-over-year comparisons - without requiring manual report generation. Charitable Pro includes built-in donation reporting and dashboard tools that give organizations immediate visibility into their fundraising performance.
Donation Reports
Structured summaries of donation activity over a specific period, typically showing total revenue, number of donations, average gift size, top donors, campaign performance, and payment method breakdown. Donation reports are essential for financial management, board reporting, grant compliance, and strategic decision-making. Charitable Pro generates detailed donation reports directly within the WordPress dashboard, giving organizations immediate access to the data they need without requiring manual exports or third-party tools.
Donor Acquisition Rate
The rate at which an organization is adding new donors to its base over a specific period. Donor acquisition rate is an important growth metric - an organization that is not consistently acquiring new donors will see its donor base shrink over time through natural attrition, regardless of how strong its retention program is. Tracking acquisition rate alongside retention rate gives you a complete picture of whether your donor base is growing, holding steady, or declining.
Donor Retention Rate
The percentage of donors who gave in a previous period and gave again in the current period. Donor retention rate is one of the most important metrics in nonprofit fundraising because it directly measures relationship strength and the long-term health of your donor base. The industry average retention rate for new donors is approximately 20-30% and for multi-year donors approximately 60-65%. Improving retention by even a few percentage points has a dramatic compounding effect on lifetime revenue.
Engagement Rate
A measure of how actively your audience is interacting with your communications and content - including email opens and clicks, social media interactions, website visits, event attendance, and volunteer participation. High engagement is a leading indicator of donor loyalty and giving intent. Tracking engagement across multiple channels helps identify your most committed supporters - those who consistently open emails, attend events, and share content are strong candidates for upgrade asks, recurring giving invitations, and major donor cultivation.
Funnel
A model that describes the journey a prospective donor takes from initial awareness of your organization to making a first gift - and beyond, through repeat giving, major giving, and planned giving. The funnel is widest at the top, where large numbers of people become aware of your cause, and narrows at each subsequent stage as some drop off and others deepen their engagement. Understanding where prospects are dropping out of your funnel helps you identify which stages need the most attention and investment.
Goal Tracking
The process of configuring your analytics platform to record specific user actions - such as completing a donation, submitting a volunteer form, or signing up for a newsletter - as conversion events. Goal tracking transforms your analytics from a traffic measurement tool into a fundraising performance measurement tool, showing you not just how many people visited your donation page but how many actually completed a gift. Setting up goal tracking in Google Analytics is one of the highest-value analytics configurations available to nonprofits.
Google Analytics
A free web analytics platform provided by Google that tracks and reports on website traffic, visitor behavior, and conversion performance. For nonprofits, Google Analytics provides essential data about how visitors are finding your website, which pages they are visiting, how long they are staying, and whether they are completing donations. Setting up goal tracking for donation completions allows you to measure conversion rates and attribute donations to specific traffic sources and campaigns. Charitable Pro integrates with Google Analytics on its Pro plan.
Key Performance Indicator (KPI)
A specific, measurable metric used to evaluate progress toward an organizational or campaign goal. KPIs give teams a shared, objective basis for assessing performance and making decisions. Common nonprofit fundraising KPIs include total revenue raised, donor retention rate, average gift size, cost per dollar raised, conversion rate, and donor lifetime value. Effective KPIs are specific, measurable, time-bound, and directly linked to strategic priorities - not just metrics that are easy to track.
Lifetime Donor Value (LDV)
The total amount a donor is expected to give to your organization over the entire duration of their relationship with you. Also referred to as Donor Lifetime Value (LTV). Lifetime donor value is one of the most important strategic metrics in fundraising because it shifts focus from individual transactions to long-term relationships. A donor who gives $25 per month for five years has a lifetime value of $1,500 - significantly more valuable than a one-time gift of $100.
LYBUNT
An acronym for Last Year But Unfortunately Not This Year. Refers to donors who gave during the previous year but have not yet given in the current year. LYBUNT lists are a standard tool in annual fund fundraising, used to identify lapsed donors for targeted reactivation appeals. Because LYBUNT donors have given recently and are familiar with your organization, they typically respond at higher rates than cold prospects.
Monthly Giving Rate
The percentage of your total donor base who are enrolled in a recurring monthly giving program. Monthly giving rate is a strong indicator of donor loyalty and revenue predictability. Organizations with high monthly giving rates have more stable, forecastable revenue and are more resilient to the natural fluctuations of annual campaign fundraising. Building and growing a monthly giving program is one of the highest-return investments available to most nonprofits.
New Donor Rate
The percentage of total donors in a given period who are giving to your organization for the first time. A healthy new donor rate indicates that your acquisition efforts are working and that your donor base is growing. However, a very high new donor rate combined with a low retention rate suggests that you are acquiring donors but not keeping them - a pattern that is expensive and unsustainable. Balancing acquisition and retention investment is one of the core strategic challenges of nonprofit fundraising.
Recency, Frequency, Monetary Value (RFM)
A donor segmentation model that evaluates donors based on three dimensions - how recently they gave, how frequently they give, and how much they give. RFM analysis helps organizations identify their most valuable donors, their most at-risk donors, and the segments most likely to respond to specific types of appeals. Donors who score high on all three dimensions - recent, frequent, and generous - are your most engaged supporters and should receive your most personalized stewardship and cultivation attention.
Return on Investment (ROI)
A measure of the financial return generated by a specific investment, expressed as a percentage. In fundraising, ROI is calculated by dividing the net revenue from a campaign - total revenue minus total costs - by total costs, and multiplying by 100. A campaign that costs $5,000 and raises $25,000 has a net revenue of $20,000 and an ROI of 400%. ROI is most useful as a comparative metric - evaluating the relative efficiency of different campaigns, channels, and strategies - rather than as an absolute measure of success.
Session Duration
The average amount of time visitors spend on your website during a single visit. Longer session durations on donation pages and campaign pages generally indicate higher engagement and stronger intent to give. Very short session durations on key fundraising pages may suggest that visitors are not finding the content compelling, that the page is loading too slowly, or that the donation form is creating friction that causes visitors to abandon before completing a gift.
Source Tracking
The practice of identifying and recording where donors and website visitors are coming from - whether that is a specific email campaign, a social media post, a paid advertisement, a Google search, or a direct visit. Source tracking is typically implemented through UTM parameters added to links in your marketing communications. Understanding which sources are driving the most donations - not just the most traffic - allows you to allocate your marketing budget and effort more effectively.
SYBUNT
An acronym for Some Year But Unfortunately Not This Year. Refers to donors who gave in some previous year but not in the current year - a broader category than LYBUNT that includes all lapsed donors regardless of when they last gave. SYBUNT analysis helps organizations understand the full scope of their lapsed donor population and prioritize reactivation outreach based on recency, frequency, and original giving level.
Traffic
The number of visitors to your website or specific pages over a defined period. Traffic is a foundational metric but should always be evaluated alongside engagement and conversion metrics rather than in isolation. High traffic to a donation page that converts poorly is less valuable than lower traffic with a high conversion rate. Understanding the sources of your traffic - organic search, email, social media, paid advertising, direct - helps you identify which channels are delivering the most motivated and conversion-ready visitors.
UTM Parameters
Short pieces of tracking code added to the end of URLs in your marketing communications that allow analytics platforms to identify the source, medium, and campaign associated with each visit. For example, a UTM parameter added to a link in your year-end appeal email will tell Google Analytics exactly how many visitors came from that email and how many of those visitors completed a donation. UTM parameters are essential for understanding which of your marketing activities are actually driving donations. Available to track in Charitable Pro through its Google Analytics integration on the Pro plan.
Year-Over-Year (YOY) Comparison
A comparison of performance metrics from the current period against the same period in the previous year. Year-over-year comparisons are the most common and most meaningful way to evaluate fundraising trends because they control for seasonal patterns and one-time anomalies. A campaign that raised 10% more this year than last year is a meaningful indicator of organizational growth. YOY comparisons are a standard component of board reporting and annual fundraising reviews.
Bequest
A gift made through a donor's will or estate plan, to be transferred to a nonprofit after the donor's death. Bequests are the most common form of planned gift and are frequently the largest gifts a nonprofit ever receives. Even a small percentage increase in the number of donors who include an organization in their will can dramatically transform long-term financial sustainability. Donors who have communicated bequest intentions should be acknowledged, cultivated, and recognized - ideally through a legacy society or planned giving recognition program.
Capital Campaign
See Fundraising & Donations above. A large-scale fundraising drive to fund a major one-time investment - building construction, an endowment, or a significant equipment purchase. Unlike annual fundraising, it has a defined start, end, and dollar target.
Case for Support (Case Statement)
A document that articulates why a donor should invest in your organization - making the argument for your mission, the urgency of the need, the effectiveness of your approach, and the tangible impact of charitable investment. A strong case for support tells a compelling story, presents credible evidence of impact, and answers the donor's fundamental question: why you, why now, and why at this level? The case for support is the foundation of all major fundraising communications - from grant proposals to capital campaign materials to major gift conversations.
Challenge Grant
A type of matching gift where a lead donor or foundation pledges a significant gift contingent on the nonprofit raising a specified amount from other donors within a defined time period. Unlike a standard matching gift, a challenge grant is typically structured as an all-or-nothing commitment that creates urgency and rallies community support toward a shared goal. Challenge grants are particularly effective for launching capital campaigns or achieving major funding milestones.
Charity Navigator
An independent nonprofit watchdog organization that evaluates and rates charitable organizations based on their financial health, accountability, transparency, and results reporting. Charity Navigator's ratings are widely referenced by donors researching organizations before giving. Maintaining a strong Charity Navigator profile - through accurate financial reporting, sound governance practices, and transparent program reporting - is increasingly important for donor confidence and larger gift cultivation.
Corporate Matching Gift
A program where an employer agrees to match charitable donations made by its employees to qualifying nonprofits, typically dollar-for-dollar or at a set ratio. Matching gift programs are offered by thousands of companies but are significantly underutilized because donors either don't know their employer offers a match or don't complete the submission process. Proactively prompting donors to check for employer matches - at the point of donation and in follow-up communications - is one of the easiest ways to increase the effective value of gifts already received.
Cultivation
The process of building a genuine relationship with a prospective or existing donor over time, with the goal of deepening their understanding of and commitment to the organization's mission before making a significant gift ask. Cultivation involves meaningful, personalized engagement - facility tours, program updates, personal meetings, event invitations - that helps a donor understand and believe in the work before being asked to invest significantly. Major gifts are almost always the result of sustained cultivation over months or years.
Donor Acquisition
The process and set of activities dedicated to recruiting first-time donors to your organization - through digital advertising, social media, peer-to-peer campaigns, events, direct mail, and content marketing. Donor acquisition is significantly more expensive than donor retention - typically costing five to ten times more to acquire a new donor than to retain an existing one. However, consistent acquisition is essential to organizational health, as natural attrition means even a strong retention program will not sustain a donor base without a steady inflow of new supporters.
Donor Advised Fund (DAF)
A charitable giving vehicle administered by a sponsoring public charity - such as Fidelity Charitable, Schwab Charitable, or a community foundation - that allows donors to make an irrevocable, tax-deductible contribution, receive an immediate tax benefit, and then recommend grants from the fund to qualified nonprofits over time. DAFs have become one of the fastest-growing sources of charitable giving in the United States. For nonprofits, DAF gifts typically arrive as checks or electronic transfers from the sponsoring organization - not from the donor directly. Nonprofits should make it easy to accept and acknowledge DAF gifts and, where possible, cultivate relationships with DAF holders who may have significant assets available for grantmaking.
Google Ad Grant
A program from Google that provides eligible 501(c)(3) organizations with up to $10,000 per month in free Google Search advertising credits. The Google Ad Grant is one of the most valuable free resources available to nonprofits, enabling organizations to drive targeted traffic to their website, attract new donors, recruit volunteers, and promote campaigns - at no cost. Organizations that use their grant effectively can generate hundreds of thousands of dollars in equivalent advertising value annually. Applying for the grant and maintaining campaign quality standards requires consistent account management.
GuideStar / Candid
A nonprofit information platform (now operating as Candid, following the merger of GuideStar and Foundation Center) that provides detailed profiles of nonprofit organizations, including Form 990 data, program information, leadership details, and organizational self-reported impact metrics. GuideStar/Candid is widely used by donors, foundations, and researchers to evaluate and vet nonprofits before giving or grantmaking. Claiming and regularly updating your Candid profile is a basic transparency best practice.
Impact Report
A document, typically published annually or at the conclusion of a major campaign, that communicates the tangible outcomes and measurable difference that donors' gifts have made. An impact report goes beyond financial reporting to tell stories of real change - people helped, problems solved, communities strengthened. Impact reports serve as both a stewardship tool for existing donors and a credibility-building resource for prospects, foundations, and media. They are distinct from annual reports, which emphasize organizational governance and financials.
Legacy Society
A recognition program that honors donors who have made a planned gift - typically a bequest - to the organization. Legacy society membership provides recognition and community for planned giving donors, reinforcing their commitment and deepening their connection to the organization's future. Legacy societies typically include special acknowledgment in publications, invitations to exclusive events, and a sense of belonging to a community of the organization's most deeply committed supporters.
Matching Gift Platform
A third-party service that helps nonprofits identify donors who are eligible for employer matching gift programs and guides them through the submission process. Because many donors are unaware that their employer offers matching gifts, using a matching gift tool can significantly increase the total value received per donor. Double the Donation is the most widely used matching gift platform in the nonprofit sector. When integrated into the donation process, matching gift tools typically surface the match opportunity immediately after a gift is completed, when donor motivation is highest.
Moves Management
A systematic approach to major donor cultivation and solicitation that defines specific, intentional actions - called moves - that advance a prospect through the stages of the gift cycle: identification, qualification, cultivation, solicitation, and stewardship. Moves management provides a structured framework for managing a portfolio of major donor relationships and ensures that every prospect receives timely, appropriate engagement. It is the standard methodology used by major gift officers at most mid-to-large nonprofits.
Prospect Research
The process of identifying, analyzing, and evaluating potential major donors based on their financial capacity to give and their affinity for your cause. Prospect research draws on publicly available information - real estate records, SEC filings, foundation grants, business ownership, and philanthropic history - to assess a prospect's giving capacity. Affinity indicators - board service, volunteer involvement, event attendance, and existing giving relationships - help prioritize which prospects are most likely to respond to cultivation. Prospect research is a core discipline in major gifts fundraising.
Qualified Charitable Distribution (QCD)
A direct transfer of funds from an individual retirement account (IRA) to a qualified charity, available to IRA owners aged 70½ or older. Also called an IRA charitable rollover. Donors can transfer up to $108,000 per year (2025 limit, indexed annually for inflation) directly from their IRA to a qualifying nonprofit without the distribution counting as taxable income. QCDs are particularly valuable for donors who do not itemize deductions, since the tax benefit comes from income exclusion rather than a deduction. The acknowledgment letter for a QCD should confirm the gift was received and that no goods or services were provided in exchange.
Stock / Securities Gift
A donation of appreciated stocks, bonds, or mutual fund shares made directly to a nonprofit organization. For the donor, gifting appreciated securities is often more tax-advantageous than selling the securities and donating cash - because the donor avoids capital gains tax on the appreciation while still claiming the full fair market value as a charitable deduction. For the nonprofit, accepting stock gifts opens access to a significant pool of assets that donors may not be inclined to give as cash. Nonprofits should have a brokerage account set up to receive stock gifts and a clear process for handling them.
Sustainer
A donor enrolled in a recurring giving program who makes automatic, scheduled contributions - typically monthly. The term sustainer is used interchangeably with recurring donor or monthly donor in many organizations. Sustainer programs are built around the principle that predictable, ongoing support enables an organization to plan, invest, and deliver programs with confidence. Organizations with strong sustainer programs are significantly more financially stable and resilient than those dependent primarily on one-time or annual gifts.
Our goal here is to give you the clearest possible understanding of the language, tools, and concepts that shape how nonprofits operate, fundraise, and grow. If there is a term you use regularly that you did not find here, we want to know - this glossary is a living resource and we update it regularly as the sector evolves.
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