Julep’s Nonprofit Glossary

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Major Gift: A major gift is a gift of a significant amount. The size of the gift may vary according to the organization’s needs and goals, and it may periodically repeat. Major donors, while few, usually contribute the majority of revenue raised from individuals for a charity. Also known as a Program Designation.

Management & General Expenses: Include expenses related to oversight, organization management, record-keeping, budgeting, financing, and related activities. Collectively fundraising and management and general expenses are referred to as support services. Also called Administrative Expenses.

Management Letter: A written statement directed by an auditor to a board of directors that notes any material weaknesses or significant deficiencies in the financial statements.

Market Potential: Source of funds, members, or clients (individuals and organizations).

Matching Fund/Gift: A matching gift is made on the condition that it be matched within a certain period, either on a one-to-one basis or in accordance with some other formula. It also refers to a gift by a corporation that matches a gift by one of its employees. Also known as a Challenge Fund.

Matching Gifts Program: A grant or contributions program that will match employees’ or directors’ gifts made to qualifying educational, arts and cultural, health or other organizations. Specific guidelines are established by each employer or foundation. Some foundations also use this program for their trustees.

Matching Grant: A grant or gift made with the specification that the amount donated must be matched on a one-for-one basis or according to some other prescribed formula.

Material Weakness: A deficiency in internal controls that may result in a misstatement in an organization’s financial statements that could not be prevented or detected.

Membership Dues: Some organizations have members that pay an annual fee to receive certain services. Often membership dues are contributions if no benefits are received by the donor in exchange for dues.

Membership Organization

Membership Organization: A nonprofit that grants its members specific rights to participate in its internal affairs and/or to receive certain benefits in return for payment of membership dues.

Memorial Gift: A gift to the Foundation commemorating someone who has died, as designated by the donor. Upon request, the organization will notify the appropriate family members of memorial gifts. Memorial should not be confused with a gift to honor a living person.

Mentor: A wise and trusted person with relationship to another person.

Merchant Account: To accept credit and debit cards for payment, organizations need to have a merchant account. A merchant account is just like a bank account and acts as your organization’s holding tank for your payments that you receive online.

Merger: Combining two or more organizations into one.

Micromanagement: This usually refers to a manager who is paying too much attention to details and is not focusing on the big picture; also refers to boards that stray into management and fail to respect the authority delegated to the chief executive.

Mid-level Gifts: The middle range for a charity’s donations depends on the organization’s size and donor base. Mid-level donors are sometimes neglected in comparison with major donors, but many are likely to give more generously if given attention. Many major donors to a charity often come from its pool of mid-level donors.

Mission: The fundamental purpose and reason for which an organization exists.

Mission Statement: A brief description of the organization’s approach to filling the need it was created to address. It is not defined in expressions of goals or objectives.

Mixed Economy: An economy with a mixture of state and private enterprises.

Monthly Giving: A monthly giving program allows supporters to make an automatic donation of a specific amount every month, typically as a recurring credit card charge. Donors who might not be able to give a large one-time gift are often willing to sign up for monthly giving, ultimately donating more over time than they would have otherwise. Also known as Sustainer Giving or Recurring Giving.

Mortgage: Legal agreement entered into by a borrower granting a lender a lien on a real estate asset collateral for the repayment of a loan.

Moves Management: The process by which a prospective major donor is moved from cultivation to solicitation. “Moves” are the actions an organization takes to bring in donors, establish relationships, and renew contributions.

Mutual Aid Society: A nonprofit organization set up to benefit its members and the community financially and otherwise.