Helpful Resources

Workplace Giving Campaign

In addition to the Combined Federal Campaign, there are also other programs allowing certain charitable organizations to solicit contributions from employees. Various states, municipal governments, and businesses also organize and manage workplace payroll deduction fund drives for charitable organizations. These states require registration by charities or federated fundraisers to participate in these programs.

Unified Registration Statement (URS)

This is a multi-state charity registration form that represents an effort to consolidate the reporting requirements of all states that require charitable organizations to register to solicit charitable contributions. The form was created through a collaboration of the National Association of State Charity Officials and the National Association of Attorneys General. However, not all states accept the URS, and those that do often do not allow it to be used for registration renewals. In addition, most states require the URS to be submitted with additional state-specific supplemental forms, making it less than “uniform.” Many states also prefer to receive their state-specific form, which are more aligned with the statutory registration requirements.

Trustee

The person(s) or institutions responsible for the administration of a trust. Some nonprofit organizations also use the term “trustee” in place of “director”.

Tax-Exempt Organization

An organization that is exempt from paying state and/or federal income taxes. Tax-exempt organizations include a variety of organizations, including charitable, religious, and educational organizations, social welfare organizations, trade associations, social clubs, and labor unions.

Surety Bond

A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee – here, the state) a certain amount if a second party (the principal – e.g., the professional fundraiser or commercial co-venturer) fails to meet some obligation, such as fulfilling the terms of a contract.

Supporting Organization

A type of public charity that is not required to meet the Public Support Test because it supports one or more public charities. The key feature of a supporting organization, which is not required of a private foundation, is the supporting organization’s strong relationship with the organization(s) it supports. Supporting organizations are distinguishable from donor-advised funds because they are distinct legal entities.

Solicitation Disclosure Statement

States that require charities to register in order to solicit also require them to include certain disclosures on all written solicitation materials.

Schedule B

Schedule in the IRS Form 990 that outlines contributions received, during the year, totaling $5,000 or more (in money or property) from any one contributor.

Restricted Gift

Donations given to a nonprofit organization with specific restrictions on the funds, including restricting the use of the funds to a specific purpose or program or the timing of the distributions.

Religious Exemption

This definition varies by state. An organization may qualify as a religious organization exempt from the registration requirements in some states and must still register to solicit contributions in other states. There is a need to examine each state where your organization is or anticipates soliciting contributions to determine if and how to qualify.

Registered Agent

An individual or entity that is designated to receive federal and state legal documents and service of process on behalf of an organization or business.

Qualification to do Business

A corporation that does intrastate business in a state other than its state of incorporation or formation may be required to “qualify to do business,” which involves obtaining a certificate of authority to do business, and appointing a resident agent upon whom process may be served. (See also Foreign Qualification)

Public Charity

A type of 501(c)(3) tax-exempt organization that generally receives its revenue from a broad spectrum of sources, including individuals, the government, for-profit businesses, and private foundations.

Individual Solicitor

An individual who works for a professional fundraiser.

Professional Solicitor (PS)

Any person, or their agent, who is paid to solicit contributions for charitable purposes.

Professional Fundraiser (PFR)

Someone who conducts, advises, acts as a consultant in connection with the solicitation of contributions for or on behalf of a charitable organization.

Private Foundation

A type of 501(c)(3) tax-exempt, charitable organization that is typically funded by one person or company or a small number of individuals. (See also Corporate Foundation)

Political Campaign Activity

An activity that involves participating in, or intervening in any political campaign or candidate running for public office. Political campaign activity is often referred to as “electioneering”.

Planned Gift

A gift that is arranged in the present and distributed at a future date. Often donated through a will or trust and granted once the donor has passed away.

Philanthropy

A voluntary giving by an individual or group to promote the common good. Also refers to grants of money given by foundations to nonprofit organizations.

Perlman Compliance Group

Personalized Nonprofit Fundraising Registration and Compliance with a commitment to providing exemplary service tailored to meet the needs of clients. Services include initial registrations, renewal registrations, exemptions, extensions and so much more.

Nonprofit Organization

An organization organized for purposes other than generating profit and in which no part of the organization’s income is distributed to its members, directors, or officers. (See also Charity or Charitable Organization)

Mission Statement

Any purpose described in Section 501(c)(3) of the Internal Revenue Code that describes an organization’s reason for being. The purpose is often detailed in the charity’s Articles of Incorporation. (See also Charitable Purpose)

Membership Exemption

Organizations soliciting solely within their membership are eligible for exemption from some states. Analysis required to determine where the organization is eligible for exemption.

Lobbying

Any attempt to influence legislation, whether it is through attempts to affect the opinion of the public with respect to legislation and encouraging the audience to take action with respect to the legislation (grass roots lobbying), or through the organization’s direct communication with any member or employee of a legislative body or with any government official or employee who may participate in the formulation of legislation (see also Direct Lobbying).

Joint Venture

Any joint ownership or contractual arrangement through which there is an agreement to jointly undertake a specific business enterprise, investment or exempt purpose activity. Joint ventures are generally characterized by shared ownership, shared returns and risks, and shared governance. Tax-exempt organizations entering into joint ventures with a for-profit business must carefully structure the arrangement to ensure that its participation in the joint venture does not jeopardize its tax-exempt status.

IRS Determination Letter

A document issued by the IRS formally recognizing an organization’s tax-exempt status.

IRS 990-PF

Filed by private foundations in the US. It includes fiscal information and a complete list of grants, among other information. The form is due to the IRS 4.5 months after the end of the foundation's fiscal year. (See also 990-PF or Form990-PF)

IRS 990-EZ

This form can be used instead of Form 990 for organizations with gross receipts less than $200,000 and total assets less than $500,000 (there are some exceptions). (See also 990-EZ or Form 990 E-Z)

IRS 990

The IRS form filed annually by tax-exempt organizations. The IRS uses this form to assess compliance with the Internal Revenue Code. The form lists organization assets, receipts, expenditures and compensation of officers. (See also Form 990or 990)

In-Kind Contribution

A donation of goods or services rather than cash or appreciated property. (See also Gift-In-Kind)

Gift-In-Kind

A donation of goods or services rather than cash or appreciated property. (See also In-Kind Contribution)

Fund Raising Counsel

An entity who, for compensation, plans, manages, advises or consults with respect to the solicitation of contributions for a charitable organization, but who does not directly solicit contributions or receive or have custody or control of contributions. (See also Fundraising Consultant)

Fund Raising Consultant (FRC)

An entity who, for compensation, plans, manages, advises or consults with respect to the solicitation of contributions for a charitable organization, but who does not directly solicit contributions or receive or have custody or control of contributions. (See also Fundraising Counsel)

Form 990-PF

Filed by private foundations in the US. It includes fiscal information and a complete list of grants, among other information. The form is due to the IRS 4.5 months after the end of the foundation's fiscal year. (See also 990-PF or IRS 990-PF)

Form 990-EZ

This form can be used instead of Form 990 for organizations with gross receipts less than $200,000 and total assets less than $500,000 (there are some exceptions). (See also 990-EZ or IRS 990 E-Z)

Form 990

The IRS form filed annually by tax-exempt organizations. The IRS uses this form to assess compliance with the Internal Revenue Code. The form list organization assets, receipts, expenditures and compensation of officers.

Form 8868

Form used by exempt organizations to request an extension to file an exempt organization return. It is most often used by charities to request a 6-month extension of time to file Form 990.

Form 1024 Application

Form that an organization files with the IRS to apply for tax exempt status under various sections of the Internal Revenue Code. For example, social clubs may use Form 1024 to achieve tax exempt status.

Form 1023 Application

Form used to apply for recognition as a tax-exempt organization under Section 501(c)(3). (See also 1023 Application)

Foreign Qualification

A corporation that does intrastate business in a state other than its state of incorporation or formation may be required to “qualify to do business,” which involves obtaining a certificate of authority to do business, and appointing a resident agent upon whom process may be served. (See also Qualification to do Business)

Fiscal Sponsorship

A relationship in which a 501(c)(3) tax-exempt organization (fiscal sponsor) serves as the official recipient of charitable donations for another organization (sponsored organization, or project) that has not been recognized as tax-exempt.

Financial Report

An accounting statement detailing financial data, including income from all sources, expenses, assets and liabilities. A financial report may also be an itemized accounting that shows how grant funds were used by a grantee organization. Most foundations require a financial report from grantees.

Federated Giving Program

A joint fundraising effort usually administered by a nonprofit "umbrella" organization that in turn distributes the contributed funds to several nonprofit agencies. United Way is an example of federated giving programs. (See also Combined Federal Campaign)

Endowment

A financial asset donated to a nonprofit organization in the form of investment funds or other property intended to be maintained in perpetuity and invested to create a source of income.

Educational Exemption

States will exempt organizations who are educational institutions or supporting foundations of educational institutions based on a variety of factors. An examination is necessary to determine who is eligible.

Donor Advised Fund

A separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account.

Doing Business As(d/b/a)

A name under which a company does business other than its legal name. (see also Assumed Name)

Direct Lobbying

Any attempt to influence legislation, whether it is through attempts to affect the opinion of the public with respect to legislation and encouraging the audience to take action with respect to the legislation (grass roots lobbying), or through the organization’s direct communication with any member or employee of a legislative body or with any government official or employee who may participate in the formulation of legislation (see also Lobbying).

Crowdfunding

The practice of obtaining funding (including for projects, businesses, or charitable causes) by soliciting funds from a number of people especially via the internet

Corporate Giving Program

A charitable grantmaking program established and administered by a for-profit business. Corporate giving programs may include employee matching programs, volunteer grants, corporate sponsorships and grants, and gifts-in-kind. Corporate giving programs may be administered directly by the company or through a corporate foundation.

Corporate Foundation

A nonprofit organization that obtains its funds primarily from one for-profit business (See also Private Foundation)

Consent Agreement

In the context of state charitable solicitation registration, a “consent agreement” is an agreement issued by a state agency – usually the Secretary of State’s Office or Attorney General’s Office – in lieu of filing a lawsuit or instituting administrative proceedings for an alleged violation of the state’s charitable solicitation statute. (See also Administrative Agreement)

Commercial Fundraiser

Anyone who’s paid to solicit “funds, assets, or property” in California for charitable purposes, and who receives or controls that money or property. It also includes anyone who “employs, procures, or engages” any paid person to solicit or control charitable donations.

Commercial Co-Venturer (CCV)

Any person or entity who, for profit, advertises that the purchase or use of certain goods or services will benefit a charitable organization or charitable purpose. (See also Cause Marketing or Cause Related Marketing)

Combined Federal Campaign (CFC)

It is a program allowing certain charitable organizations to solicit contributions from employees of the Federal Government of the United States. The CFC is the largest workplace charity campaign in the United States. In addition, the CFC is the only campaign authorized to solicit and collect contributions from federal employees in the workplace on behalf of charitable organizations. (See also Federated Giving Program)

Charleston Principles

A guide created by members of the National Association of State Charities Officials (NASCO) and the National Association of Attorneys General (NAAG) forthe purpose of helping states develop a more standardized approach to regulating internet-based fundraising and solicitation. These principles are nonbinding, but they serve to help states interpret such solicitation.

Charitable Purpose

Any purpose described in Section 501(c)(3) of the IRS Code that describes an organization’s reason for being. The purpose is often detailed in the charity’s Articles of Incorporation. (See also Mission Statement)

Charitable Organization

A nonprofit organization whose primary objectives are philanthropy and social well-being. The legal definition of a charitable organization varies between countries and in some instance’s regions of the country. (See also Charity or Nonprofit Organization)

Charitable Gift Annuity

A gift vehicle that falls in the category of planned giving. It involves a contract between a donor and a charity, whereby the donor transfers cash or property to the charity in exchange for a partial tax deduction and a lifetime stream of annual income from the charity.

Charity

In section 501(c)(3) of the IRS Code, the term is used and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency. (See also Charitable Organization or Nonprofit Organization)

Cease and Desist

A cease and desist order is an order issued by a state agency – usually the Secretary of State’s Office or Attorney General’s Office – that revokes an organization’s registration and directs the organization to stop (i.e., cease and desist) soliciting in the state. A cease and desist order is usually issued if an organization fails to renew or withdraw its registration.

Certificate of Good Standing

A document issued by the state agency where a corporation is registered to transact business.

Certificate of Incorporation

A legal document filed with a state governmental agency to create a corporation. The Certificate of Incorporation generally sets forth the name, address, and purposes of the corporation, and may include additional information about the corporation. (See also Articles of Incorporation)

Cause Related Marketing

Any person or entity who, for profit, advertises that the purchase or use of certain goods or services will benefit a charitable organization or charitable purpose. (See also Cause Marketing or Commercial Co-Venturer)

Cause Marketing

A marketing alliance between a company or brand and a charitable organization that generates both business and societal benefits. (See also Commercial Co-Venturer or Cause-Related Marketing)

Caging

In the context of nonprofit fundraising, the term is used to describe the process of opening mail containing contributions to nonprofit organizations, sorting the contents, counting the funds, and depositing the funds in the nonprofit organization's bank account.

Bylaws

Rules outlining the internal governance of an organization. Bylaws often provide the methods for the selection of directors, officers, outline member eligibility requirements and rights (if any) and establish the rules for the conduct of board and member meetings, including voting requirements.

Board of Directors/Board of Trustees

A governing body of individuals who are responsible for overseeing the organization's activities.

Benefit Corporation

A traditional corporation with modified obligations committing it to higher standards of purpose, accountability and transparency. New companies can incorporate as a benefit corporation in any state where benefit corporation legislation has been passed. Existing companies can elect to become a benefit corporation by amending their governing documents.

B Corp

Businesses that are certified by nonprofit, B Lab, to meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.

Audit

A systematic financial examination of an organization by an independent body auditor’s opinion: the auditor’s view of how fairly the financial statement represents the organization’s financial position included in the audit report

Assumed Name (d/b/a)

A name under which a company does business other than its legal name (see also Doing Business As)

Asset

Tangible or intangible property that has exchange value.

Articles of Incorporation

A legal document filed with a state governmental agency to create a corporation. The Articles of Incorporation generally sets forth the name, address, and purposes of the corporation, and may include additional information about the corporation. (See Certificate of Incorporation)

Administrative Agreement

In the context of state charitable solicitation registration, a “consent agreement” is an agreement issued by a state agency – usually the Secretary of State’s Office or Attorney General’s Office – in lieu of filing a lawsuit or instituting administrative proceedings for an alleged violation of the state’s charitable solicitation statute. (See also Consent Agreement)

Affirmation Letter

A letter that confirmsan organization is tax exempt. It also reflects any recent changes in its name or address.

990-PF

Filed by private foundations in the US. It includes fiscal information and a complete list of grants, among other information. The form is due to the IRS 4.5 months after the end of the foundation's fiscal year. (See also Form 990-PF or IRS 990-PF)

990-EZ

This form can be used instead of Form 990 for organizations with gross receipts less than $200,000 and total assets less than $500,000 (there are some exceptions). (See also Form 990-EZ or IRS 990 E-Z)

990

The IRS form filed annually by tax-exempt organizations. The IRS uses this form to assess compliance with the Internal Revenue Code. The form list organization assets, receipts, expenditures and compensation of officers. (See also Form 990 or IRS 990)

8868

Form used by exempt organizations to request an extension to file an exempt organization return. It is most often used by charities to request a 6-month extension of time to file Form 990. (See also Form 8868)

501(c)(8)

The IRS code that designates a tax-exempt organization for fraternal beneficiary society, order, or associations.

501(c)(7)

The IRS code that designates a tax-exempt organization that is organized for pleasure, recreation, and other nonprofitable purposes. 501(c)(7) organizations are commonly referred to as “social clubs.”

501(c)(6)

Section of the IRS Code that designates tax-exempt organizations, including business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues. Such organization must not be organized for profit and no part of the net earnings may inure to the benefit of any private shareholder or individual.

501(c)(4)

The IRS code that designates a tax-exempt organization that is operated exclusively to further the common good and general welfare of the people of the community. 501(c)(4) organizations can undertake unlimited lobbying activities in furtherance of their social welfare purposes (as opposed to a 501(c)(3), which is very limited in the amount of political lobbying it can do). 501(c)(4) organizations are also allowed to conduct political campaign activities, so long as they are not the organization’s primary activity.

509(a)

Section of the tax code that designates a 501(c)(3) tax-exempt organization’s public charity status. A 501(c)(3) tax-exempt organization also must have a 509(a) designation to be classified as a public charity.

501(c)(3)

The IRS code that designates a tax-exempt organization as charitable. Organizations qualifying under this section include religious, educational, charitable, amateur athletic, scientific or literary groups, organizations testing for public safety or organizations involved in prevention of cruelty to children or animals.

1024 Application

Form that an organization files with the IRS to apply for tax exempt status under various sections of the Internal Revenue Code. For example, social clubs may use Form 1024 to achieve tax exempt status. (See also Form 1024 Application)

1023 Application

Form used to apply for recognition as a tax-exempt organization under Section 501(c)(3). (See also Form1023 Application)

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Glossary of Terms