What Does that mean anyway?

As with most anything, the nonprofit/not-for-profit sector has a culture and “language” all its own. Understanding commonly used key words, concepts, and phrases can go a long way in demystifying that culture, and help you navigate the work.

I’ve collected here a broad range of terms you should be familiar with, as you move forward in your efforts. While some may be familiar, terms are explained through the lens of how they apply to and are used in the nonprofit sector.

Nonprofit

There are actually a few categories of nonprofits established by the Internal Revenue Service. They are:

-A Charitable Organization is a nonprofit is an organization that is “organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational or other specified purposes.”

-Churches and religious organizations, like many other charitable organizations, may qualify for exemption from federal income tax under Section 501(c)(3).

-Private foundations typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs. *

Not-for-Profit

Sector

Industry

Grant

Donor

Donation

Sponsor

Sponsorship

Governance

Best Practice

Bylaws

Articles of Incorporation

Minutes

Board of Directors

Board Member

Fundraising

Profit/Loss

IRS Status

Incorporation

Form 990

Form CT-12