Julep’s Nonprofit Glossary
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Target Population: The set of people as defined by demographics served by a specific NPO or specific project.
Tax Benefits: Savings in income, gift, and estate taxes brought about by giving to charitable institutions.
Tax Code: The laws and regulations that define the tax system in the United States.
Tax Credit: Credit against tax liability.
Tax-deductible Amount: The tax-deductible amount is the amount of a donation a donor can claim as a deduction on their income tax return. Charitable donations must be paid in cash or as other property before the close of the tax year to be deductible. In general, donations to charities can be deducted up to 50% of adjusted gross income, though some gifts to private foundations, veterans’ groups, etc., have lower limits. If you sell an item (such as an event ticket), the Fair Market Value of that item must be subtracted from the full payment amount. The remainder is the tax-deductible amount for the contribution.
Tax Exempt: Exempted from tax; bearing tax-free interest on federal or state income.
Tax-exempt Organizations: Organizations that do not have to pay state and/or federal income taxes. Organizations other than churches seeking recognition of their status as exempt under Section 501(c)(3) of the Internal Revenue Code must apply to the IRS. Charities may also be exempt from state income, sales, and local property tax.
Tax-exempt Sector: When referring to the nonprofit sector, emphasizes the fact that under U.S. tax law, the organizations in this sector are exempt from the national income tax and from most state and local property and sales taxes.
Team: Two or more players on one side in a game; a group of people trained or organized to work together.
Technical Assistance: Operational or management assistance given to a nonprofit organization. It can include fundraising assistance, budgeting and financial planning, program planning, legal advice, marketing, and other aids to management. Assistance may be offered directly by a foundation or corporate staff member or in the form of a grant to pay for the services of an outside consultant. See In-Kind Contribution.
Telemarketing: Raising funds or selling products or services by telephone.
Telephone-Mail Campaign: A fundraising technique, often referred to as phone-mail, that combines mail and telephone solicitation in a sophisticated manner using paid solicitors and management of the program; a telephone solicitation supported by a mail component for confirmation of verbal pledges.
Temporary Restriction: Limits on funds specified by a donor dependent on the passage of time, or some other temporary condition.
Temporarily-restricted Asset: Tangible or intangible property subject to contributor-imposed restrictions that expire after a certain date.
Temporarily-restricted Net Assets: The portion of the net assets limited by donor-imposed stipulations that either expire with time or can be fulfilled by actions of the organization.
Term Limits: A restriction on the number of consecutive terms that a person can serve as a board member.
Third-party Reimbursement: Payment for goods or services by a party other than the one receiving the goods or services.
Third Sector: Used to describe all nonprofit organizations and institutions. Also known as the independent sector, nonprofit sector non-governmental, non-business sector, civic sector, or social sector of the economy.
Timing: Determination of the most favorable times to complete certain fund- raising objectives to achieve maximum results.
Tipping: The situation that occurs when a gift or grant is made that is large enough to significantly alter the grantee’s funding base and cause it to fail the public support test. Such a gift or grant results in “tipping” or conversion from public charity to private foundation status.
Tithe: A tenth of one’s income given voluntarily for the support of a religious institution.
Tradition: The doctrines, knowledge, practices, and customs passed down from one generation.
Training & Curriculum Development: Designing and/or leading professional development for staff or trustees and learning opportunities for grantees.
Transaction Fee: A transaction fee is an expense a business or nonprofit must pay to process each electronic payment they receive. Transaction fees vary across service providers, costing up to 5.0% of the full transaction amount plus $0.20 to $0.35 per transaction.
Trust: A legal instrument for holding assets of an individual for the benefit of one or more persons or organizations.
Trust Funds: Money, securities, property held in trust by an agent of wealth (bank, estate manager, attorney) or managed by an institution under trust agreement to produce income for the beneficiary.