Dictionary

2FA(see also: Two-Factor Authentication)

A security method that requires two separate steps to log in, typically your password plus a one-time code sent to your phone or email. Even if someone gets hold of your password, they cannot access your account without also having the second factor. It is one of the simplest and most effective ways to protect your accounts, and most software platforms either offer or require it.

501(c)3

The IRS designation that makes a US organization officially tax-exempt. Getting your 501(c)3 status means the government recognizes you as a nonprofit, donors can deduct their gifts on their taxes, and you are exempt from paying federal income tax on money used for your mission.

Acknowledgment Letter

A written confirmation sent to a donor after they make a gift. It serves two purposes: thanking the donor and providing the documentation they need to claim a tax deduction. Laws very by country, in the US, you are required to send one for gifts over $250. In Israel, the legal reporting is now handled by the government, but sending one is standard practice and an easy touchpoint with your donor.

Advisory Board

A group of people who lend their expertise, networks, or credibility to your organization on an informal basis. They advise but don't govern. They can open doors, review strategy, and add legitimacy, without the legal obligations that come with board membership.

Allocation

The process of designating money, resources, or time to a specific use. Federations and foundations commonly use the term to describe how grant funds are divided among member agencies or grantees each funding cycle.

עמותה(Amuta)

A registered nonprofit entity under Israeli law. Amutot (plural) operate under the supervision of the Registrar of Amutot and are the standard legal vehicle for charitable organizations in Israel. This is the Israeli equivalent of an American 501(c)3 or Registered Charity in the UK.

Annual Fund

The yearly fundraising effort most nonprofits run to sustain their general operations. Unlike capital campaigns or restricted grants, annual fund gifts are usually unrestricted, meaning the organization can use them where the need is greatest. Donors who give to the annual fund consistently are often the best candidates for major gift conversations.

API

An Application Programming Interface (API) is a bridge that connects two systems. The API connection defines both what and how information is passed back and forth between the two systems.

API Key

A private code that grants access to a specific API connection, think of it like a key that unlocks the door between two systems. Without it, the connection stays closed. When a vendor asks for your API key, they're asking for that key. Treat it like a password, it should never be shared publicly.

Application Programming Interface(see also: API)

An Application Programming Interface (API) is a bridge that connects two systems. The API connection defines both what and how information is passed back and forth between the two systems.

Building Campaign

A dedicated fundraising drive to pay for physical infrastructure, whether that's a new building, a renovation, or a major facility upgrade. Building campaigns run separately from annual operating fundraising, with their own goal, timeline, and donor communications, and a defined endpoint tied to the project cost.

CRM

Short for Customer Relationship Management. In a nonprofit context, this is your donor database. It is the system that tracks who gave, when, how much, and what conversations you've had. Your CRM is the operational center of your development office.

Customer Relationship Management(see also: CRM)

Short for Customer Relationship Management. In a nonprofit context, this is your donor database. It is the system that tracks who gave, when, how much, and what conversations you've had. Your CRM is the operational center of your development office.

DAF(see also: Donor Advised Fund)

A Donor Advised Fund is essentially a charitable account where a donor sets aside money for giving. They get the tax benefit when they fund the account, then distribute grants to nonprofits on their own timeline, sometimes immediately, sometimes years later. The gift will appear to come from the fund's sponsoring institution rather than the donor directly, which can catch development staff off guard if they're not familiar with how DAFs work.

Data Dictionary

A reference document or database that defines every data field your organization uses, including things like: what it is called, what it means, what format it takes, and where it lives. Most nonprofits never build one formally, but anyone who has inherited any system with automations or custom fields understands why having one matters.

Digital Whiteboard

A browser-based canvas for visual thinking and collaboration. Teams use digital whiteboards to brainstorm, map processes, run workshops, and plan projects together using sticky notes, shapes, and freehand drawing, whether they're in the same office or across different time zones.

Donor

An individual, family, foundation, or company that contributes money or resources to your organization. Donors range from first-time small gift givers to major philanthropists who fund entire programs. Understanding who they are and why they give is at the heart of everything development work tries to do.

Donor Advised Fund

A Donor Advised Fund is essentially a charitable account where a donor sets aside money for giving. They get the tax benefit when they fund the account, then distribute grants to nonprofits on their own timeline, sometimes immediately, sometimes years later. The gift will appear to come from the fund's sponsoring institution rather than the donor directly, which can catch development staff off guard if they're not familiar with how DAFs work.

EIN

Employer Identification Number. A unique nine-digit tax ID assigned by the IRS to organizations operating in the United States. If your organization is US-based, you'll need it for grant applications, bank accounts, and vendor contracts. Donors and foundations will ask for it regularly, so keep it handy. If you don't know yours, it's on your 990 or your IRS determination letter.

Employer Identification Number(see also: EIN)

Employer Identification Number. A unique nine-digit tax ID assigned by the IRS to organizations operating in the United States. If your organization is US-based, you'll need it for grant applications, bank accounts, and vendor contracts. Donors and foundations will ask for it regularly, so keep it handy. If you don't know yours, it's on your 990 or your IRS determination letter.

Generative AI

Generative AI is a type of Artificial Intelligence that creates content based on what it has learned from pre-existing content.

הוועד המנהל(see also: Va'ad HaMenahel)

The governing board of an Israeli nonprofit (Amuta). The Va'ad Menahel is the legal body responsible for overseeing the organization's management, approving budgets, and ensuring compliance with Israeli nonprofit law. It functions similarly to a board of directors in a US nonprofit.

kanban(see also: Kanban board)

A workflow method that organizes tasks into columns representing stages of work. Originally developed in Japanese manufacturing, it is now one of the most common ways project and task management software displays work. The goal is to limit work in progress and make bottlenecks visible at a glance.

Kanban board

A workflow method that organizes tasks into columns representing stages of work. Originally developed in Japanese manufacturing, it is now one of the most common ways project and task management software displays work. The goal is to limit work in progress and make bottlenecks visible at a glance.

LYBUNT

An acronym for donors who gave last year but not this year. LYBUNT reports are a standard re-engagement target, and fundraising teams will spend a lot of time with this list. It will include data like who the donor is, when they last donated, how much they gave in their last gift, and similar metrics.

Markdown

Markdown is the formatting language powering most of the tools nonprofits use for day-to-day written work that never becomes a formal Word or Google doc. Instead of a toolbar, you use plain characters, type **bold** and it becomes bold. Add a # and it becomes a heading. Same output as Word, no menu ribbon required.

Not-for-profit

An organization that operates without the goal of generating profit for owners or shareholders. Often used interchangeably with "nonprofit," though the two can carry slightly different legal meanings depending on where you are. In the US, "nonprofit" is the standard term with a specific IRS definition. If you're unsure which applies to your organization, your legal counsel or local nonprofit registrar can clarify.

Sunk Cost Fallacy

The tendency to keep a tool, project, or vendor relationship alive because you have already poured money and hours into it. For nonprofit operators this usually shows up as refusing to leave a CRM that no longer fits, on the logic that switching would waste the years of setup. Those years are already spent either way. The only question that matters is whether the tool serves you now.

SYBUNT

Some Year But Unfortunately Not This year. A fundraising term for donors who have given before but not in the current giving year, regardless of how long ago their last gift was. This is similar to a LYBUNT, but broader.SYBUNT lists help identify lapsed donors who have a giving history with your organization and may be worth reactivating.

Touchpoint

Any interaction between your organization and a donor, prospect, or member. A thank-you call, an email, an event invitation, a grant report, all of these are touchpoints. Tracking them in your CRM is how you manage relationships rather than just transactions.

Transaction Fee

A charge applied each time a payment is processed. On fundraising platforms, transaction fees are typically a percentage of the donation amount plus a small flat fee per gift. They are deducted before funds reach your organization, so what your donor gives and what you receive are not the same number.

Two-Factor Authentication

A security method that requires two separate steps to log in, typically your password plus a one-time code sent to your phone or email. Even if someone gets hold of your password, they cannot access your account without also having the second factor. It is one of the simplest and most effective ways to protect your accounts, and most software platforms either offer or require it.

UK Registered Charity

ועד מנהל(Va'ad HaMenahel)

The governing board of an Israeli nonprofit (Amuta). The Va'ad Menahel is the legal body responsible for overseeing the organization's management, approving budgets, and ensuring compliance with Israeli nonprofit law. It functions similarly to a board of directors in a US nonprofit.

Wealth Screening

The process of researching donors or prospects to estimate their giving capacity. This is done using publicly available data, things like real estate, business affiliations, or stock holdings. Most major fundraising platforms either include this or integrate with tools that do it.

Work OS

An all-in-one platform for managing work across teams. Unlike single-purpose tools (think Microsoft Word or WhatsApp), a Work OS connects tasks, projects, communications, and reporting in one place, reducing the need to switch between multiple systems. They will often include tools like document editors, file storage, spreadsheets or databases built in.