Julep’s Nonprofit Glossary

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Racial Equity: Racial equity is the condition that would be achieved if one’s racial identity no longer predicted, in a statistical sense, how one fares. When we use the term, we are thinking about racial equity as one part of racial justice, and thus we also include work to address root causes of inequities not just their manifestation. This includes elimination of policies, practices, attitudes, and cultural messages that reinforce differential outcomes by race or fail to eliminate them.

Racial Equity, Diversity, Cultural Competency: Development of foundation policies and practices that promote cultural diversity, inclusiveness, and sensitivity across cultures.

Rating: An evaluation or “guesstimate” of a prospective contributor’s ability to contribute. The rating becomes an asking figure for the solicitor to suggest in requesting a contribution or pledge.

Ratios: A tool to analyze and assess the financial condition of an organization by converting financial information into standard ratios. By using standard calculations, financial information can be compared more easily to historical or industry information.

Real Estate Gifts: The transfer of property to a 501(c)(3) organization or institution, the value of which is determined by the fair market value of the property.

Receivables: See Accounts Receivable or Notes Receivable.

Recognition: Formal or informal acknowledgment of a gift or contributed services; an event, communication, or significant item honoring a gift or a service.

Records Retention & Destruction Policy: A guideline for handling, backing up, archiving and destruction of documents. These guidelines foster good record keeping procedures that promotes data integrity. Here we are reporting on the existence of a policy as reported by the charity on its Form 990.

Recurring Donation: A Recurring donation, or recurring gift, is an ongoing, specific gift amount determined by a donor that is charged monthly to a donor’s credit card.

Recurring Gifts: These are gifts made in the same amount on a regular schedule (usually monthly). Recurring gifts are desirable because donors who make them usually give more per year than supporters who give sporadically; the approach also provides charities with more predictable revenue.

Refinance: To replace one loan with another, usually to extend the maturity, change the payment amount, or to consolidate several loans.

Release from Restrictions: The accounting transaction used to transfer funds with donor restrictions into an organization’s unrestricted accounts when the restriction has been satisfied, such as when a special project is initiated.

Religious Focus: A philanthropy that roots its grantmaking in formal religious values and traditions, and often directs its grantmaking to organizations that share an affiliation with its religious denomination.

Renewal Mailing: A mailing to donors or members requesting renewed support.

Request for Proposal: (RFP) When the government, or a foundation, issues a new contract or grant program, it sends out RFPs to agencies that might be qualified to participate.

Research: Primary and secondary research to inform, examine or provide background on areas of grantmaker interest and current or future investment, including needs assessments and environmental scans.

Reserves: An amount set aside by the Board to be used for needs that are outside the regular annual budget. Reserves may be designated for operating, building, opportunity, or other purposes.

Restricted Gift: A donation made with the stipulation that it be used for a particular purpose or program. Empowers donors to feel secure that their gifts will be used as they envision.

Restricted Grant: Contribution designated to a specific purpose or project.

Restricted Funds: Assets or income that is restricted in its use, in the types of organizations that may receive grants from it, or in the procedures used to make grants from such funds.

Restricted Support: Donor-restricted revenue or gains from contributions.

Retreat: An event where the board or staff meet to learn about or explore specific issues; examples include strategic planning, orientation, or self-assessment.

Return on Investment: (ROI) A way to evaluate efficiency, expressed as a percentage. For nonprofits, your investment is the dollar value of time and resources to achieve an outcome. Enables you to determine whether the initial investment is reasonable for the outcome. The formula for calculating ROI is (Benefit-Cost)/Cost * 100.

Revenue: Income earned from services performed or merchandise sold as distinct from support or contributed income.

Review: A financial report that has been prepared by a Certified Public Accountant (CPA) that has been subject to some testing and verification. A Review is not prepared with the same rigor and standards as an Audit and does not include an opinion letter. See Audit.

Robert’s Rules of Order: A parliamentary procedure used to conduct meetings.

Royalty: A payment made to an organization by another party for the use of an asset, often an Intellectual Property Asset such as a creative or scientific work. A form of Income for the owner of the asset, and an expense for the user.

Ruling Year: The date on which the IRS recognized an organization’s tax-exempt status.