CED Fundraising & Development Flashcards

Which IRS form must most nonprofits file annually that includes fundraising revenue disclosures?

Answer: Form 990

The IRS Form 990 is an annual information return that discloses an organization's revenue, expenses, and program accomplishments, including fundraising totals.

What is a 'capital campaign'?

Answer: An intensive fundraising effort to raise a specified sum for a major project or facility

Capital campaigns are time-limited, goal-oriented efforts typically aimed at funding building projects, endowments, or major program expansions.

What is the '80/20 rule' as commonly applied in nonprofit fundraising?

Answer: 80% of donations come from 20% of donors

The Pareto Principle in fundraising reflects that a small segment of major donors typically accounts for the vast majority of contributed revenue.

What is 'donor stewardship'?

Answer: The ongoing process of thanking, recognizing, and reporting to donors after gifts are received

Effective donor stewardship builds trust and loyalty, increasing the likelihood of future gifts and improving overall donor retention.

A 'lead gift' in a capital campaign typically represents what portion of the campaign goal?

Answer: 10-20% of the total goal from a single donor or family

Lead gifts set the pace and tone for a capital campaign and often represent a transformational commitment from a top prospect.

Which type of nonprofit revenue is most reliable and predictable for budgeting purposes?

Answer: Monthly recurring gifts from a sustainer program

Monthly sustainers provide consistent, predictable income that smooths cash flow and reduces reliance on single large gifts or seasonal campaigns.