Julep’s Nonprofit Glossary

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National Geographic Focus:  Refers to programs and initiatives that are national in scope.

National Taxonomy of Exempt Entities: (NTEE) A hierarchical system of nonprofit classifications.

Need: The lack of something desirable, useful, or necessary.

Needs: In fundraising terms, refers specifically to the institution’s dollar requirements that can constitute objectives for an intensive campaign or for a continuing fund development program, as follows:

1. Capital: Building or property needs, in the form of new construction, additions, expansion, or remodeling or acquisition of property. Sometimes related to equipment purchase or to raising funds for an addition to endowment capital.

2. Endowment: Funds required to add to the invested principal or corpus with only income used for sustaining funds, special project support, and so on.

3. Program: Annual support for the operational budget; funds required to supplement income through revenues to sustain operation of the agency or institution.

4. Project: Refers to program activity or small equipment acquisition.

5. Validated: Needs that have been identified, analyzed, and approved by management and by the governing body and other volunteers as being valid and appropriate to the functioning of the institution.

Needs Assessment: The study of an organization’s program or situation to determine what activity or activities should be initiated or expanded to satisfy a need.

Negligence: Failure to perform reasonably in a given situation.

Neighborhood Organization: Informal neighborhood clubs that serve social as well as civic functions; formally incorporated nonprofit organizations functioning to help develop housing and jobs in local areas.

Net Assets: The difference between the organization’s total assets and its total liabilities on the balance sheet indicating the net financial worth for the organization.

Net Assets Released from Restrictions: The accounting transaction for the transfer of funds from net assets with donor restrictions to net assets without donor restrictions after satisfying donor-imposed stipulations for the use of the funds.

Net Fixed Assets: The value of land, buildings, equipment and other fixed assets owned by the organization after the deduction of the accumulated depreciation of those assets.

New Foundation Development: Mission, governance, program and organizational structure related to foundation start-up.

Next Generation Issues: Building effective engagement of younger generations in foundation decision-making. Includes trustee succession planning. Also refers to building high-capacity donors ages 21 to 40.

Non-cash Gift: A contribution of an asset other than money.

Non-Governmental Organization: (NGO) As the name suggests, NGOs operate independently of any government. While they are mainly government funded, they operate without government oversight or representation from that government. NGOs are a subset of NPOs. The term is frequently used outside the U.S. to define the nonprofit sector.

Nonprofit Organization: (NPO) A private entity, either incorporated or not incorporated, with the following characteristics that distinguish it from a business enterprise:

• Contributions from donors who do not expect profit.

• Operating purposes other than to provide goods or services at a profit.

• Absence of ownership interests.

• A separate tax treatment exists based on whether it is charitable or not.

Nonprofit Corporation: An incorporated nonprofit organization, usually but not always barred by law from making a profit.

Nonprofit Sector: Any not-for-profit or tax-exempt organizations collectively that are specifically not associated with any government, government agency, or commercial enterprise.

Non-permanent Fund: A type of fund where both principal and income may be granted to a nonprofit organization.

Not-for-profit Organization: A term emphasizing that while the organization’s purpose is not private profit making, its programs may make a profit for the organization to safeguard its future ability to serve its public benefit mission.

Notes Payable: The amount an organization owes to others for loans.

Notes Receivable: The amount an organization is owed for loans made to others.