Lesson 2

Gain an Understanding of Fundraising Lingo

Glossary of Terms

Archival Size: the size of archives discussed in this education kit is based on the definitions by Prairie Research Associates[1]. A small archive has an annual operating budget of $10,000 or less. A medium archive has an annual operating budget of $ 10,001 to $200,000 and a large archive has a budget of more than $200,000

Case Statement: the rationale for why private sector donors could consider making a charitable gift to your archives is called the case statement or case for support. This document answers the question: What do you need money for? How much money do you need? Why are you worthy of support from the person, business or foundation? What will the donor get in return?

Charitable Status: the federal government grants charitable status for non-profit organizations which allows these organizations to provide a charitable receipt for a financial contribution.

Cultivation: is the process of getting donors ready to make a financial gift to an organization.

Current gifts: are charitable gifts given to the organization now. Examples of these gifts are cash, cheques, securities, credit card donations, gifts of products or other in kind things that an organization does not have to wait for.

Deferred gifts: are charitable gifts, usually given by an individual, which the organization will receive sometime in the future. Examples of this type of a gift are bequests left in a will or beneficiary funds from an insurance policy.

Development: Development within philanthropy is the creative process of building and facilitating relationships with an ever-expanding pool of stakeholders who are encouraged and invited to invest themselves in the mission and vision of charitable organizations.

Direct Response Program: a fundraising program that uses mail, email or telephone solicitation.

Donor: a person, business or foundation that has made a charitable gift to your archive.

Donor Thanks: the way you thank your donors for their gifts including phoning to say thank you when you receive the gift, sending a personal thank you note, sending a thank you note and a charitable receipt, holding a donor recognition tea or similar event.

Donor Recognition: the way you recognize donors who make charitable gifts to your organization. This can take the form of listing their name in the annual report or on a plaque in the archive, giving them a plaque, putting a nameplate in a book, naming a shelf after them, putting a plaque up on a piece of equipment that their gift provided, featuring them in a newsletter article or giving them the chance to participate in a giving club. (Permission from the donor must be garnered before their names are publicized. This can be done simply by stating in the thank you letter that you would like to list their names on the donor list and will use the name that appears on their official charitable receipt. If they wish to be anonymous or to have their name listed in a different way ask them to contact you.)

Donor Stewardship: is the way you tie the donor to the impact of their gift and the way you let them know that their money is being used the way they intended. This can take the form of annual reports to large donors, stories in newsletters, personal letters to donors, visits to the archives to see their money in action and many other activities.

Endowment: a permanently restricted asset, the principal of which is protected and the income from which may be spent and is controlled by either the donor’s restrictions or the organization’s governing board.

Fund Development Plan: the process of planning and implementing the programs that are meant to increase contributed financial support for an organization.

Gift: a charitable contribution given to an archive by an individual, business, or foundation. Other terms used are contribution or donation.

Gift of a Security: Revenue Canada allows donors to give stocks/securities to charities and not pay the capital gains tax. This might appeal to donors more than making a cash gift where they only receive the standard deduction.

Gift Planning: the process of meeting with individuals to discuss the best way for them to make an annual or special charitable gift to an organization. This may include outright gifts of cash, property or security or deferred gifts such as bequests or life insurance policies.

Giving Club: is a way of involving and recognizing donors who make a contribution to your archive. For example, you might set up a club with three levels which could be differentiated with names that fit your mission and an additional club for people who have said they will leave a bequest to your archives.

An example of this appears below:

Archivists Circle

Members: Donors who give above $1,000 per year

Benefits:

  • Quarterly meetings with the archivist to see new acquisitions
  • Twice yearly reception with board members to hear about future plans and to receive public recognition
  • Name listed in the annual report
  • An article about their donation appears in the archival newsletter or on the website.
  • Personal thank you phone call from the archivist and/or a board member.
  • Handwritten thank you note sent with the receipt
  • Receives all publications and reports
  • Invitation to annual donor recognition event.

Heritage Circle

Members: Donors who give from $500 to $999 per year

Benefits:

  • Annual meeting with the archivist to see new acquisitions
  • Annual reception with board members to hear about future plans and to receive public recognition
  • Name listed in the annual report
  • An article about their donation appears in the archival newsletter or on the website.
  • Personal thank you phone call from the archivist and/or a board member.
  • Handwritten thank you note sent with the receipt
  • Receives all publications and reports
  • Invitation to annual donor recognition event.

Preservation Circle

Members: Donors who give from $250 to $499 per year

Benefits:

  • Invitation to annual gathering at the archives to archivist to hear about new acquisitions
  • Invitation to annual reception with board members to hear about future plans and to receive public recognition
  • Name listed in the annual report
  • Personal thank you phone call from the archivist and a board member.
  • Handwritten thank you note included in the computer generated thank you letter sent with the receipt
  • Receives all publications and reports
  • Invitation to annual donor recognition event.

Legacy Leaders:

Members: all people who have told you they are leaving a bequest to the archive in their wills

Benefits:

  • Annual meeting with the archivist to see new acquisitions
  • Annual reception with board members to hear about future plans and to receive public recognition
  • Name listed in the annual report
  • An article about their donation appears in the archival newsletter or on the website.
  • Personal thank you phone call from the archivist and/or a board member.
  • Handwritten thank you note sent with the receipt
  • Receives all publications and reports
  • Invitation to annual donor recognition event.

Important note: bequests are revocable so it is important to stay connected with people who wish to leave a bequest to your archive - otherwise they might change their mind.

Master Prospect List: an organization’s list of donors and prospective donors.

Moves Management: the actions you take to identify and cultivate donors, forge relationships and keep the contributions coming are known as “moves” and “Moves Management”, simply put, is the system of policies, procedures and practices that direct these actions.

Operating/Core Money: is the money you use to keep your archive operating on an annual basis. Operating money can also be described in different ways so that it has more appeal to prospective donors. For example: if you need a certain amount of money to keep a storage room at the proper temperature and humidity; instead of calling it money for hydro you could describe it as money needed for the preservation of archival material.

Philanthropy: is the voluntary giving and receiving of time and resources, frequently within an organizational context, directed toward charitable purposes and/or betterment of the quality of life.

Pledge: is a charitable gift that will be paid over one, two or three years. When a person says they will contribute $300.00 and wish to pay $100.00 a year that is considered a pledge until it is paid and the person is always treated and recognized as a $300.00 donor.

Prospect: a person, business, or foundation that you think has the potential to become a donor to your archive.

Stewardship: a process whereby an organization seeks to be worthy of continued philanthropic support, includes the acknowledgment of gifts, thanks, donor recognition, the honouring of donor intent, prudent investment of gifts and the effective and efficient use of funds to further the mission of the organization.

The Ask: the action of meeting with a prospective donor to make a formal request for a specific amount of money to support a specific program or project. (The ask can also be part of a telephone or direct mail solicitation and is always part of a grant application)

Tribute: a gift to commemorate a person, a birthday, an anniversary or other event.

Source of definitions: www.afpnet.org Fundraising Dictionary on-line

[1] Info provided by Diane Haglund from research study done by Prairie Research Associates