Julep’s Nonprofit Glossary
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Occupancy Expense: All costs relating to the rent, utilities, insurance, assessments, and maintenance of the organization’s locations for programs and offices.
Officer: A person elected by the board of directors to serve as an appointed agent of a corporation with a specific set of responsibilities. A board typically refers to the chair, vice-chair, secretary, or treasurer. The individual is not necessarily a director or employee of for-profit or nonprofit corporation.
Open Meeting Laws: State regulations that require government agencies and some nonprofit organizations receiving public funding to open at least some of their board meetings to the public. Also called “Sunshine Laws.”
Operating Expense: General term for expenses incurred for all the activities of the organization.
Operating Foundation: A fund or endowment designated by the Internal Revenue Service as a private foundation, yet which differs from a typical private foundation in that its primary purpose is to conduct research, promote social welfare, or engage in other programs determined by its governing body or establishment charter. It may make some grants, but the sum is generally small relative to the funds used for the foundation’s own programs. They use the bulk of their income to provide charitable services or to run charitable programs of their own. To qualify as an operating foundation, specific rules, in addition to the applicable rules for private foundations, must be followed. Also called Private Operating Foundations.
Operating Reserve: An unrestricted fund set aside by the organization’s board that acts as a buffer to stabilize an organization’s finances by providing cash for planned or unplanned future expense or losses.
Operating Support: A contribution given to cover an organization’s day-to-day, ongoing expenses, such as salaries, utilities, office supplies, etc.
Operating Support Grant: A funding agreement to support the general operating expenses of an entire organization, such as salaries and rent.
Opportunity Cost: The next best alternative that must be given up when a choice is made. Not all alternatives, just the next best choice.
Orientation: Educating participants on their roles, responsibilities, their organization, and how the board works.
Organization Name: Any name by which a group is known.
Organization Legal Name: An organization’s name listed on the IRS Letter of Determination.
Outright Gift: The simple transfer of gift property to the donee without any conditions or terms of trust.
Overhead: Funds spent on the administration of an organization which cannot be attributed to any specific activity but are necessary to function, such as rent, utilities, and insurance. This expense is often distributed among programs based on a formula.