Julep’s Nonprofit Glossary
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Balance Sheet: A report showing the financial condition, including assets, liabilities, and net assets, of the organization at a particular moment in time. Also referred to as a Statement of Financial Position.
Balloon Payment: The final payment of a loan when the amortization is longer than the maturity of the underlying note. This payment is usually larger than the regular periodic payment.
Bargain Sale: The sale of property at less than its fair market value. Frequently, a person will sell property to a 501(c)(3) organization or institution at a “bargain” price (for example, the individual’s cost as opposed to its market value). The transaction is partly a gift and partly a sale.
Benefactor: One who makes a major gift to an institution or agency; also, an arbitrary classification of contributors whose gifts are above a certain level, which is calculated to single them out as a group and to stimulate similar giving by others.
Beneficiary:
1. The grantee receiving funds from a foundation or corporate giving program.
2. A person receiving a gift through a will.
Benefit:
1. Aid, help; an act of kindness
2. Social event or entertainment to raise money for a person or cause.
Benefit Event: A form of fundraising that involves the organization and staging of a special event for charitable purposes; all proceeds above expenses are designated as a contribution to the charitable institution concerned.
Benevolence: The inclination to be charitable; a disposition to do good; an act of kindness; a generous gift.
Bequeath: To give or leave someone by will; to hand down.
Bequest:
1. The act of giving or passing on to another.
2. A transfer of property such as cash, securities (stocks), and tangible property through a will.
Big Gifts: A general term used to signify gifts in upper ranges, the precise limits varying from institution to institution. Their importance is emphasized in all fundraising campaigns.
Board-designated Funds: A condition stipulated by an organization’s board of directors on how an amount of money is to be used. A common type of board designation is for Operating Reserves. For accounting purposes, these funds are considered unrestricted because the condition was not specified by a donor.
Board-designated Net Assets: The portion of net assets designated by the board of directors for a particular purpose.
Board Development: A process of building effective boards; from recruiting and orienting to engaging and educating board members, also includes rotations of board members to ensure a good fit with the organization’s governance needs Board member agreement a verbal or written statement of commitment to fulfill responsibilities as outlined in the board member job description.
Board Member: An individual who serves on the governing board of an organization.
Board Member Matrix: A tool helping identify desired characteristics and gaps on a board.
Board of Directors: Governing body of a nonprofit or for-profit corporation that consists of individuals selected in accordance with organization bylaws to establish policy and oversee specific legal and ethical responsibilities and management of an organization.
Board of Directors, Governance Issues: Structures, policies, systems, and planning to achieve highly effective governing boards. Also, composition and engagement of board members.
Board of Trustees: Another name for a governing board.
Bond: A duty or binding agreement; an investment vehicle.
Book Value: The amount of an asset stated in a company’s records, not necessarily the amount it could bring on the open market.
Budget:
The total amount of money allocated for a certain purpose including both income and expenditures.
A detailed breakdown of estimated income and expenses for a development program, prepared in advance. Budgets show various cost categories, including personnel, printed materials, purchase and rental of equipment, office expense, headquarters, mailing charges, costs of events, and so on.
Business Corporation: A common term used for “for profit” corporations.
Bricks and Mortar: Common manner of alluding to the physical plant needs of an institution and to the campaigns designed to secure the necessary funds.
Bricks and Mortar Campaign: Fundraising effort to raise money for a building.
Bridge Loan: A short-term loan with a specific repayment source.
Bylaws Amendment: A formal change to the original bylaws of an organization; the bylaws themselves should outline amendment procedures.
Bylaws: The legal guidelines, rules, or regulations that provides a framework for the operation of a nonprofit corporation. Bylaws often provide the methods for the selection of directors, the creation of committees, and the conduct of meetings.
Building Campaign: A drive to raise funds for construction or renovation of buildings.
Building Reserve: Funds set aside to pay for facility upkeep, upgrades, unexpected repairs that exceed money available through the regular budget, and replacement of fixtures and facility systems. Also known as a replacement reserve. Typically, these are unrestricted, but board-designated funds.
Bundling: Sometimes known as “bunching,” this is a practice some donors have adopted since the passage of the new federal tax rules in December 2017. In bundling, donors make a larger-than-usual donation in one year and none in the next year or two, to maximize tax benefits for their charitable giving.