Board Development - Glossary

Glossary

Intro: You will find entering the not-for-profit world brings a whole new language plus new meanings to some words you use very day.  I have tried to provide a very short description of the most common not-for-profit terms.  Even within the not-for-profit community, you will find different terminology between higher education, arts, social services, medical, etc.  You will find it very valuable to scan these lists.

Glossary – General Not-for-Profit Terms:

 Nonprofit Organization (NPO) vs. Not-for-Profit (NFP) vs. Charity vs. Charitable Organization vs. Non-Governmental Organization (NGO)  - While there may be some fine distinctions between these terms, you will find that people use them interchangeably.  NGO tens to be used more outside the US.

 Articles of Incorporation – Not-for-Profits file paperwork similar to businesses to create a corporation.  What distinguishes a charitable not-for-profit is an additional filing with the IRS requesting approval as a 501c3 Charitable Organization – giving donors approval to deduct gifts to the organization.  The IRS bases its determination on the charitable mission of the organization.

 Auxiliary, Guild, or Friends of – Many organizations have volunteer groups that play a big role in hosting special events, raising money, or promoting their efforts.  In past days, these groups were often the wives of the male Board members – today they represent a much broader cross section of participation.

 MSW or BSW – Masters or Bachelors of Social Work – People with this educational background form the core of service staff in many social and human services areas.

 Outputs vs. Outcomes – Outputs are what the organization does (# people served, # classes held). While Outcomes are what is ultimately accomplished (student reads at a higher level, continued on to higher education).

 Clients, Consumers, Service Recipients, Customers, Members, Patrons – What an organization calls the people who receive their services. Varies by organization.

Glossary – Board Structure and Leadership

Board Governance – Broad term used to explain the board’s role in leading and overseeing the organization.  Sometimes directed more specifically to the ‘mechanics’ of how the Board works, as in Governance Committee.

Board Composition or Board Matrix – Every board will have a little different mix of people based on skills, backgrounds, race or ethnicity, etc.  Most boards are actively working to increase their level of diversity.  Ideally, the current board assembles a vision than plans and recruits new board members that have the backgrounds, skills, resources, and contacts to make that plan a reality.

Terms of Office and Term Limits – Typically, board members are elected for terms of 2-4 years and may serve two or three consecutive terms – see your by-laws.  By providing limits on the amount of time that a board member can serve without a break, it ensures that new people and ideas will continually be joining the organization and that long-time supporters will get a chance to gracefully take a break.

Nominating Committee – Often referred to as the most important committee on the board because it recruits the next generation of leaders.  Defines the skills, connections, diversity, and resource needs of the board and recruits prospective members through internal and external channels.  See Governance Committee

Governance or Board Development Committee – Evolution of the nominating committee.  Meets year round with the added charter to train new and existing board members and build the strength of the ‘team.’

Board Evaluation – Usually a written survey followed by discussion to help build an effective board team.

Board Member Self-Evaluation – Usually a simple form that lets you think about your work with the organization any way you can be more effective.

Glossary – Board Meetings

Board Meetings – Official gatherings of board members to make decisions and oversee the operations of the organization.  Based on the organizations by-laws, most boards meet 4-10 times each year.

Consent Agenda – In order to maximize the amount of time that the Board spends on important discussion, they may choose to use a consent agenda.  This means that routine reports and minutes are distributed in advance for review by members.  Questions are often initiated and answered by e-mail prior to the meeting.  At the meeting, one notion is made for the approval of everything in one shot.

Board Retreat – Typically a chance to get board members together for a NON-board meeting.  In contract to focusing on routine business, retreats are an opportunity to build familiarity and relationships between members, learn more about the organization and its work, and look at big-picture issues such as planning, board effectiveness, and evaluation.

Board Meeting Evaluation – Usually a simple form that provides opportunity for feedback on how meetings are run or how the board participates.

Quorum – Based on the by-laws a minimum number or percentage of board members must be present in order to officially convene a board meeting and for a board vote to be valid.  Typically 40-60%.

Glossary – Fund Raising

Fund Raising – More commonly referred to as Fund Development or just Development.  In academic circles, often called Institutional Advancement.

Fonder – Any person or organization that provides funds to the organization.

Donation – A gift of money, securities, real estate, or other tangible property.

Gift Acceptance Policies – Policy, generally approved by the board, to clarify what types of gifts will and will not be accepted, the process for unusual gifts (such as animals or undeveloped land), and whether there are certain types of donors that will be excluded (business that sell x or people convicted of y).

Capital Campaign – Special effort to raise money for facilities, equipment, or endowment. 

Giving Clubs – Organizations typically create levels of giving to encourage people to give more and to define benefits for giving certain amounts.

 excerpts from pages 14-23 Welcome to the Board by Bryan Orander

© 2004 Mental Health America of Hendricks County  All Rights Reserved