A practical glossary for the modern nonprofit

Why this glossary exists

Nonprofit fundraising has a language problem.

The words people use—platform, donor, campaign, recurring, all-in-one—sound simple, but often mean very different things depending on who you ask. Fundraising platforms use one definition. Funders use another. Board members hear something else entirely.

The result is confusion, mismatched expectations, and systems that don’t actually support the people doing the work.

This glossary exists to help fix that.

Not by introducing more jargon, but by explaining—in plain English—how modern nonprofit fundraising actually works. What these terms mean in practice. Where things tend to break down. And why certain decisions feel harder than they should.

Some of the terms below will be familiar. Others put names to experiences that many nonprofits feel but haven’t been able to describe yet. All of them are written intentionally, neutrally, and practically for anyone trying to understand fundraising today. They provide grounding without sounding like a legal handbook.

📝 Editor’s note: This glossary is a living document. We’ll update definitions as nonprofit workflows and fundraising practices continue to evolve.

Foundational nonprofit definitions to know 📖

Before people can understand nonprofit fundraising language, they often need clarity on the nonprofit sector itself. This section defines the most common nonprofit terms people search for when they’re new, including students, first-time founders, board members, volunteers, and donors who are trying to understand how nonprofits work.

Nonprofit definition

A nonprofit is an organization created to serve a public or community benefit rather than generate profit for owners or shareholders.

Unlike for-profit businesses, nonprofits reinvest any surplus revenue back into their mission—whether that’s education, healthcare, mutual aid, the arts, or community support. Many nonprofits are formally registered under specific legal structures (such as 501(c)(3) organizations in the US), but the defining feature is purpose, not tax status.

In practice, being a nonprofit doesn’t mean operating without revenue or financial discipline. It means success is measured by impact and trust, not shareholder returns, which shapes how nonprofits fundraise, operate, and grow.

Philanthropy

Philanthropy literally means "love of humanity." In a modern nonprofit context, it refers to the act of donating money, time, talent, or resources to help solve social problems and improve the quality of life for others.

While people often associate the term with wealthy donors, big foundations, or philanthropic institutions, it actually encompasses any voluntary action intended for the public good. It differs slightly from "charity," which often focuses on immediate relief (like a food bank), by frequently aiming to address the root causes of issues to create long-term change.

🤿 Dive deeper: Black Philanthropy Month celebrates the rich history of giving in Black communities throughout the world while also raising awareness of racial disparities in philanthropic funding for Black-led organizations. 

Funding 

Funding refers to how nonprofits get the money they need to carry out their missions, from running programs and providing services to paying staff and covering various expenses. 

Nonprofit funding can come from many sources, which can include (but aren’t limited to) the following:

• Private foundations
• Government grants and contracts 
• Individual donations
• Major gifts 
• Bequests
• Corporate sponsorships 
• Membership dues

Development 

Development is a broad term that many nonprofits use to describe their overall, long-term fundraising strategy. 

A nonprofit’s director of development can oversee everything from donor relations and corporate partnerships to the various fundraising events and campaigns an organization may hold throughout each year. 

Public charity

A public charity is a nonprofit organization that receives most of its funding from the general public rather than a single source. This can include donations from individuals, grants, memberships, and fundraising events. Most nonprofits that people interact with day to day—religious institutions, schools, hospitals, food banks, arts organizations—fall into this category.

Private foundation definition

A private foundation is a nonprofit that is typically funded by a single donor, family, or corporation. Unlike public charities, private foundations usually do not raise money from the general public. 

Instead, they manage an endowment and distribute funds to other nonprofits or charitable activities rather than running programs themselves. They typically distribute grants, scholarships, or funding based on specific priorities or guidelines.

From a fundraising perspective, foundations play a different role than individual donors. Funding is usually competitive and restricted, and requires nonprofits to apply and report on specific projects.

501(c)(3)

A 501(c)(3) is a specific type of nonprofit organization recognized by the US Internal Revenue Service. Organizations with this status are typically eligible to receive tax-deductible donations and are restricted to charitable, educational, religious, or scientific purposes. In exchange, they must follow rules around political activity, governance, and the use of funds. 

Many parent-teacher associations (PTAs), for example, apply for 501(c)(3) status in order to collect tax-deductible donations from individuals and businesses that otherwise wouldn’t be able to contribute directly to a public school’s budget. 

While many people use “nonprofit” and “501(c)(3)” interchangeably, not all nonprofits are 501(c)(3)s, and not all nonprofit activities require this designation.

Fiscal sponsor

A fiscal sponsor is a nonprofit organization that provides legal and administrative support to a project or group that does not yet have its own nonprofit status.

Fiscal sponsorship allows initiatives to fundraise, accept tax-deductible donations, and operate under an established nonprofit’s umbrella. This model is common for early-stage projects, grassroots efforts, and time-bound initiatives.

For many new organizations, fiscal sponsorship is a practical alternative to forming a nonprofit immediately.

Dive deeper

Not sure which to file under? Learn more about the 30+ different types of nonprofits →

How fundraising actually starts 👀

Fundraising doesn’t begin with a campaign—it begins with systems, decisions, and early experiences that shape how people give.

The terms in this section describe the first building blocks of modern fundraising: platforms, pages, forms, and pathways that turn interest into action. Understanding these concepts helps explain why some organizations convert attention smoothly while others struggle, even with strong missions and support.

Fundraising platform

A fundraising platform is the system a nonprofit uses to accept donations, run campaigns, and manage supporters online.

In practice, a fundraising platform shapes far more than checkout. It influences donor trust, staff workload, reporting accuracy, and how easily an organization can respond to opportunities without burning out its team. 

For many small or volunteer-run nonprofits, the platform is the infrastructure—and its limitations become the organization’s limitations.

Donation landing page

A donation landing page explains why someone should give and guides them toward action. It provides context, credibility, and reassurance before a donor ever reaches the form. This is where people decide whether the cause feels real, urgent, and trustworthy.

A strong donation landing page reduces uncertainty. A weak one forces donors to carry unanswered questions into the moment of giving.

Donation form

A donation form is where a donor enters their information and completes a gift.

Small details matter enormously here. Extra fields, unclear fees, slow load times, or poor mobile experiences can introduce hesitation at the exact moment someone is ready to act. 

For many donors, this is the most direct and memorable interaction they’ll ever have with a nonprofit, which makes clarity and ease essential.

Fundraising campaign

A fundraising campaign is a focused effort tied to a specific goal, timeframe, or moment.

Campaigns work best when they’re easy to explain and easy to participate in. When they become overly complex, participation often stalls—not because people don’t care, but because the path forward isn’t clear.

Good fundraising campaigns, also known as fundraisers, reduce decision-making for supporters rather than adding to it.

Major gift

A major gift is a significant donation from an individual, typically larger than an organization’s average contribution. What qualifies as “major” varies by nonprofit size and context—it’s defined relative to your donor base, not a universal dollar amount.

Major gifts often involve personal relationships, longer cultivation timelines, and tailored communication. In many organizations, engaging major and mid-level donors is a dedicated role within development.

Major gifts can also take the form of matching gifts, where a donor commits funds to incentivize others to give during a campaign.

Bequest

A bequest is a gift made through a donor’s will or estate plan. Bequests are a form of planned giving and typically take effect after a donor’s passing.

They may include cash, property, investments, or a percentage of an estate. While often large, bequests are unpredictable in timing and should be treated as long-term support rather than immediate revenue.

Planned giving programs focus on stewardship, trust, and long-term relationships, rather than short-term fundraising goals.

Endowment

Often created by a bequest, an endowment is a dedicated fund where the principal amount is invested for long-term growth, rather than being spent immediately. Instead of using the entire donation at once, a nonprofit can use the investment income (the interest and dividends) to support its mission indefinitely.

Think of it like a "forever fund,” providing a permanent, reliable source of income that ensures the organization's financial stability for decades to come.

Capital campaign 

A capital campaign is a targeted, time-limited fundraising effort designed to raise a significant amount of money for a specific, high-cost project, such as:

• Brick-and-mortar projects: Building a new facility, renovating an existing one, or purchasing land
• Endowments: Building a large reserve of invested funds to ensure long-term financial stability
• Large equipment: Purchasing expensive assets like a fleet of vehicles or specialized medical technology

In-kind donation

An in-kind donation is a non-monetary gift made to a nonprofit organization. Instead of giving cash or writing a check, the donor contributes goods or services. These donations allow nonprofits to acquire necessary resources without depleting their liquid budgets.

Common examples include:

• Goods: Food for a pantry, laptops for a school, or silent auction items for a gala
• Services: Pro-bono legal advice, graphic design work, or free use of a printing press
• Facilities: A local business providing free meeting space for a nonprofit’s board

⭐ Tip: While these gifts are incredibly valuable, they still need to be recorded! Nonprofits must track the Fair Market Value (FMV) of in-kind gifts for accounting and tax-receipting purposes.

Grant

A grant is funding provided by a foundation, corporation, or government entity to a nonprofit for a specific purpose. Grants are usually restricted, competitive, and time-bound.

Nonprofits typically apply for grants through a formal process that may include a letter of inquiry (LOI), a full grant proposal, a defined grant cycle, and post-award reporting. Many organizations use grant databases to identify opportunities and track deadlines.

Grants require strong management, reporting, and compliance, but they rarely replace the need for diversified fundraising.

Grassroots fundraising

Grassroots fundraising relies on many people giving smaller amounts rather than a few large donors. This often includes recurring donations, membership dues, peer-to-peer campaigns, events, and crowdfunding.

Grassroots models emphasize participation, community trust, and shared ownership of impact. Some organizations intentionally prioritize grassroots fundraising to reduce dependence on institutional funders or external priorities.

Giving circles are one example of grassroots philanthropy organized collectively.

Donor prospect 

A donor prospect is a person or organization that has the potential to become a donor or increase their level of support. 

Prospects are identified through donor prospecting tools, research, referrals, and engagement signals. Prospect research helps nonprofits understand capacity, interest, and alignment—but interest must still be earned through trust and relationship-building.

Being a prospect does not guarantee a gift; it signals possibility, not intent.

The systems behind the scenes 🗺️

Behind every donation is a web of tools, integrations, and processes that supporters rarely see—but teams feel every day.

The terms below describe the infrastructure that powers fundraising operations, from tech stacks to system debt. Understanding this layer helps explain why some nonprofits move quickly and confidently, while others feel constrained by their tools even when demand is high.

Donor cultivation 

Cultivation is the process of building relationships with supporters over time before making (or increasing) an ask. Donor cultivation includes education, storytelling, invitations to engage, and personalized communication that builds trust and familiarity.

Cultivation is about readiness, not pressure. When done well, it makes giving feel natural rather than transactional.

👀 Example: Inviting a potential donor to a behind-the-scenes tour or sharing impact updates for months before asking for support.

Donor engagement 

Donor engagement describes how supporters interact with a nonprofit beyond giving money. Engagement can include opening emails, attending events, volunteering, sharing campaigns, responding to surveys, or participating in peer-to-peer fundraising.

High engagement often predicts long-term support, even when donation amounts are small. Low engagement can signal fatigue or misalignment before revenue drops.

👀 Example: A donor who opens newsletters regularly, attends one event per year, and shares fundraising links on social media.

Donor solicitation

Solicitation is the formal process of asking a person, foundation, or corporation for a contribution. While it sounds a bit "legalistic," it’s essentially the moment where a relationship turns into a request for support.

Key aspects of solicitation include: 

• The "Ask": It is a direct request for a gift, whether that’s cash, a multi-year pledge, or an "in-kind" donation (like equipment or services).
• Compliance: Most U.S. states require nonprofits to register for a solicitation license before they can legally solicit funds from residents of those states. This is to ensure transparency and prevent fraud.
• Medium: Solicitations can occur via face-to-face meetings, direct mail, email campaigns, or phone calls.

In professional fundraising, a solicitation is rarely the first point of contact. It is usually the climax of a "cultivation" process in which you’ve already built rapport with the donor.

Donor acknowledgment 

Donor acknowledgment is how a nonprofit recognizes and thanks someone after they give. This can include confirmation emails, personalized thank-you messages, receipts, handwritten notes, or public recognition.

Acknowledgment is not just etiquette—it’s a retention tool. Fast, genuine gratitude reinforces trust and increases the likelihood of future giving.

👀 Example: An immediate email receipt followed by a personalized thank-you message from a staff member within 48 hours.

Donor stewardship 

Donor stewardship is the process of managing and nurturing relationships with donors after they have contributed to an organization. It involves two primary goals:

• Responsibility: Ensuring the gift is used exactly as the donor intended and managing those funds with integrity.

• Relationship building: Expressing gratitude and keeping the donor informed about the impact of their contribution to encourage a lifelong connection with the cause.

Think of stewardship as the bridge between the first gift and the next one. It transforms a one-time transaction into a meaningful partnership. 

Donor life cycle 

The donor life cycle describes the stages a supporter moves through over time, from first awareness to deeper involvement. Common stages include discovery, first gift, repeat giving, increased commitment, and long-term advocacy.

Understanding the donor life cycle helps nonprofits design communication and fundraising strategies that meet supporters where they are, rather than treating every donor the same.

👀 Example: A first-time donor receives a welcome series of emails, then an invitation to give again, and then more information on opportunities for recurring or major support.

Moves management

Moves management is a structured approach to guiding donors through the donor life cycle using intentional actions (“moves”). Each move is a planned interaction designed to deepen the relationship, such as a meeting, a call, an invitation, or a tailored message.

Moves management is most commonly used for major and mid-level donors, but the principles apply to all relationship-based fundraising.

👀 Example: Scheduling a thank-you call, followed by an impact update, then an invitation to discuss future support.

How people give (& keep giving) 🔁

Fundraising isn’t just about how much people give—it’s about how they participate over time. These terms describe common giving patterns that shape sustainability.

All-in-one fundraising

Also known as: integrated fundraising, unified fundraising platform

All-in-one fundraising refers to using a single system to manage multiple fundraising needs rather than stitching together separate tools.

In practice, true all-in-one solutions reduce complexity rather than adding to it. The goal isn’t fewer features—it’s fewer gaps, handoffs, and workarounds. When done well, all-in-one fundraising lowers operational strain and increases confidence across teams.

Fundraising stack

Also known as: nonprofit tech stack, fundraising tech stack

A fundraising stack is the collection of tools a nonprofit uses to raise money and manage supporters.

Stacks often grow organically over time, with tools added to solve individual problems. When those tools don’t communicate well, the stack can create more work than it saves.

Complex stacks are a common source of operational drag and frustration.

Integration

An integration is a connection that allows data to move between tools. Some integrations are reliable and real-time; others are partial, delayed, or fragile. When integrations fail, staff often become the glue holding systems together.

The cost of weak integrations is usually paid in time, accuracy, and stress.

One-time donation

A one-time donation is a single gift without an expectation of future giving. Many donors start here, especially when responding to a moment or fundraising campaign.

The way this first gift is acknowledged often determines whether it remains a one-time gift.

Recurring giving

Recurring giving is when donors commit to ongoing contributions on a regular schedule. These gifts create predictability and reduce pressure on teams to constantly “start from zero.”

Strong recurring programs are built on clarity, trust, and ease—not pressure.

Peer-to-peer fundraising

Peer-to-peer fundraising allows supporters to raise money on behalf of a nonprofit using their own networks. Trust travels faster through relationships than brands, which is why this model can be powerful.

When tools aren’t designed for non-staff users, peer-to-peer participation drops quickly.

Crowdfunding

Crowdfunding is fundraising driven by many small donations, often tied to a clear goal or story. It works best when urgency, simplicity, and social proof align.

Crowdfunding struggles when campaigns feel vague or overly complex.

Mobile-optimized

A mobile-optimized donation experience is specifically designed to be fast, easy, and visually clear on smartphones and tablets. With so much nonprofit web traffic now coming from mobile devices, a clunky mobile experience can lead to high donation abandonment. Optimization removes the friction between a donor feeling inspired and completing their gift.

Unlike a standard website that might simply "shrink" to fit a small screen, a mobile-optimized platform adjusts its layout (responsive design) to ensure buttons are easy to tap, text is readable without zooming, and forms are streamlined to require minimal typing and fewer clicks. 

Mobile-optimized forms also give donors mobile-friendly ways to pay, including digital wallets like Apple Pay, Google Pay, Venmo, PayPal, and Cash App. 

Tools like text-to-donate and scan-to-donate are also smartphone-friendly giving tools. 

Promises, pledges, & credit 📝

These terms clarify how commitments, recognition, and attribution work, especially in campaigns involving multiple stakeholders.

Donation

A donation is a completed transfer of funds to a nonprofit. Once received, it can be recorded, acknowledged, and (if applicable) receipted for tax purposes.

Donations are realized revenue rather than promises.

Pledge

A pledge is a commitment to give at a future date. Pledges are often used in capital campaigns or major gift fundraising.

Until fulfilled, pledges are expectations but not usable cash.

Dive deeper

What’s the difference between a pledge and a donation? Learn more & see why you need both →

Soft credit

Soft credit recognizes someone for influencing or enabling a donation, even if they didn’t give directly. This might include a board member who solicited a gift or a fundraiser whose page drove a donation.

Soft credit helps nonprofits understand relationship impact beyond transactions.

Matching gift

A matching gift is a donation that is matched—partially or fully—by another donor, employer, or funder. Matches create urgency and increase perceived impact.

Poorly explained matches can confuse donors and reduce trust.

How fundraising performance is measured 📊

These terms describe how nonprofits understand revenue, efficiency, and risk. They’re often used in board conversations, audits, and strategic planning—but rarely explained plainly.

​Donor retention

Donor retention measures how many donors give again after their first contribution. High retention signals trust, satisfaction, and effective follow-up.

Most fundraising growth comes from improving retention—not acquiring more first-time donors. 

Donor lifetime value (LTV)

Donor lifetime value estimates the total revenue a supporter contributes over time. LTV reframes fundraising decisions around relationships instead of transactions.

Optimizing for LTV often means accepting higher acquisition costs in exchange for long-term sustainability.

Gross revenue

Gross revenue is the total amount of money raised before any expenses, fees, or costs are subtracted. This includes all donations, ticket sales, sponsorships, and fundraising income.

Gross revenue shows scale but not sustainability.

Net revenue

Net revenue is what remains after fundraising expenses, platform fees, processing costs, and event expenses are deducted. This number reflects how much funding is actually available to support the mission.

Healthy organizations pay attention to net revenue, not just top-line totals.

Cost to raise a dollar

Cost to raise a dollar measures how much it costs a nonprofit to generate one dollar of revenue. It’s calculated by dividing fundraising expenses by total funds raised.

While useful, this metric can be misleading when used without context, especially for growing or early-stage organizations investing in infrastructure.

Return on fundraising investment (ROFI)

Return on fundraising investment compares the long-term value generated by fundraising efforts against their cost. Unlike cost-per-dollar metrics, ROFI accounts for retention, lifetime value, and repeat giving.

ROFI encourages sustainability over short-term efficiency.

Revenue concentration risk

Revenue concentration risk occurs when a large portion of funding comes from a small number of sources. Losing one major donor or grant can destabilize operations overnight.

Diversified revenue streams reduce vulnerability and increase resilience.

Moments that make or break fundraising 🔦

Fundraising doesn’t happen evenly. It accelerates in moments—and stalls when those moments are missed.

This section focuses on timing, readiness, and momentum: the concepts that determine whether attention turns into impact. These terms are especially useful for understanding crisis response, campaign performance, and why speed and clarity matter as much as reach.

Campaign moment

A campaign moment is the point in time when attention, urgency, and motivation align. This could be a deadline, a match, a crisis, or a milestone. Fundraising rarely happens evenly over time—it spikes when people feel a clear reason to act now.

Recognizing and preparing for campaign moments often matters more than extending campaign length.

Welcome experience

The welcome experience is the sequence of interactions a new supporter has after discovering a nonprofit, from first visit to first donation and early communication. 

A clear, thoughtful welcome builds confidence and trust. A confusing or silent one creates doubt about whether the organization is organized, responsive, or reliable.

Many nonprofits don’t intentionally design this experience, but it plays a major role in whether someone gives again.

Freebie alert!

Download your free welcome email series to create a strong foundation from the start →

Activation event

An activation event is the moment someone moves from passive support to active participation. This might be a first donation, starting a fundraiser, or sharing a campaign. Activation events mark the beginning of deeper engagement.

Designing for activation often matters more than increasing reach.

Repeat pathway

A repeat pathway is the intentional path that makes it easy for a supporter to give again.

This might include recurring giving, follow-up campaigns, events, or community participation. Without a clear pathway, repeated support depends on chance rather than design.

Strong repeat pathways reduce pressure on teams and make fundraising feel sustainable instead of constantly reactive.

Urgency window

An urgency window is the short period when attention and willingness to give peak.

These windows appear during crises, deadlines, or time-bound moments. When missed, momentum fades quickly—even if interest remains.

Speed and clarity determine whether urgency turns into impact.

Fundraising velocity

Fundraising velocity is how quickly an organization can turn attention into action. High velocity depends on readiness and simplicity, not just audience size. Slow systems quietly drain momentum.

Velocity turns moments into results.

Response readiness

Response readiness is how prepared a nonprofit is to receive donations at a moment’s notice. This includes technical setup, messaging clarity, and internal coordination. In moments of crisis, readiness often matters more than reach.

Preparedness is a form of respect for donor intent.

Fundraising momentum

Fundraising momentum is the compounding effect of trust, participation, and consistency over time. Momentum makes future fundraising easier. Without it, every campaign feels like starting from zero.

Sustainable organizations protect momentum intentionally.

Where money (& trust) gets lost ☁️

Most fundraising challenges don’t come from a lack of generosity—they come from friction, gaps, and breakdowns in the process.

This section names the common points where donations stall, supporters disengage, or teams quietly lose momentum. These terms help explain why fundraising feels harder than it should, and why small operational issues can have an outsized impact over time.

Donation friction

Also known as: checkout friction, donation drop-off, abandoned donations

Donation friction is any moment of hesitation or confusion that makes a donor pause, reconsider, or abandon a gift. This can include long forms, unclear fees, forced account creation, or anything that introduces doubt at the moment someone is ready to act. 

Most donors don’t stop giving because they lack generosity or interest—they stop because the process feels harder than expected. Over time, even small amounts of friction quietly limit how much support an organization can sustain.

These moments often point to solvable problems rather than failed outreach. Understanding where donations are abandoned can often reveal simple fixes that result in big improvements. 

Friction point map

A friction point map can help you identify where supporters hesitate, get confused, or drop off during the fundraising journey. These friction points can include unclear messaging, manual steps, slow page load times, or gaps in follow-up. 

Mapping them helps teams fix systems rather than blame donors. Many nonprofits feel this friction intuitively—far fewer take time to name or document it.

Thank-you gap

The thank-you gap is the delay or absence of acknowledgment after someone gives.

This gap matters more than many nonprofits realize. Donors often decide whether to give again based on how appreciated they felt after their first gift—not just the mission itself.

Fast, genuine gratitude builds trust. Silence erodes it.

Dive deeper

Are your donors ghosting you? Learn the top do’s and don’ts nonprofits should know →

Donor fatigue

Also known as: giving fatigue

Donor fatigue occurs when supporters feel overwhelmed, pressured, or repeatedly asked without a meaningful connection. It’s often caused by over-communication, unclear impact, or asking without acknowledging past support. 

Donor fatigue isn’t about asking too much—it’s about asking without enough care or context. When fatigue sets in, even loyal supporters begin to disengage.

Donor engagement plateau

A donor engagement plateau occurs when donations continue, but deeper involvement stalls.

Supporters may give occasionally but stop participating, sharing, or increasing commitment. This often signals a relationship problem, not a revenue one.

Fundraising burnout

Also known as: nonprofit burnout, development burnout

Fundraising burnout is the emotional, mental, and physical exhaustion that builds when fundraising demands consistently exceed the capacity of people and systems.

Burnout doesn’t come from lack of passion. It comes from constant urgency, unclear expectations, and too much invisible work carried by too few people.

When burnout takes hold, fundraising becomes reactive, turnover increases, and even strong missions struggle to sustain momentum.

Nonprofit tech debt 

Nonprofit tech debt is the long-term cost of relying on outdated or disconnected technology. It limits visibility, slows response times, and makes change feel risky. 

Smaller nonprofits often feel this debt most acutely because they lack the capacity to work around it. Over time, tech debt shapes what organizations believe is “possible.”

Fundraising debt

Fundraising tech debt is the hidden cost that builds when nonprofits patch together tools and processes that don’t work well together. It shows up as manual work, duplicated data, fragile workflows, and a fear of changing anything because “it might break.” 

Like technical debt, it accumulates slowly and becomes harder to unwind over time. Fundraising debt makes growth harder and burnout more likely, especially for small teams.

Legacy systems

Legacy systems are tools built for a different era of nonprofit work. They may still function, but often struggle to support modern expectations like mobile giving, real-time reporting, and volunteer-led fundraising.

Legacy systems don’t fail loudly—they quietly slow everything down.

Operational drag

Operational drag is the friction that slows teams down due to inefficient systems or processes.

It’s the work that doesn’t show up in metrics but shows up in exhaustion—the extra steps, manual fixes, and delays that make simple tasks feel heavy.

Reducing operational drag often unlocks more capacity than hiring.

Operational leverage

Operational leverage is when tools and systems allow a small team to achieve results that exceed expectations.

Good leverage reduces repetitive work and decision fatigue, freeing people to focus on relationships, storytelling, and strategy. Without leverage, growth relies entirely on human effort, which is rarely sustainable.

Nonprofit tech inequality

Nonprofit tech inequality is the growing gap between nonprofits with access to modern tools and those left behind by outdated systems. As donor expectations rise, this gap increasingly determines which organizations can grow sustainably, regardless of mission strength.

The human layer 💛

Fundraising is ultimately done by people—often fewer than anyone realizes.

The terms in this section describe the human dynamics behind fundraising: volunteer experience, role overload, burnout, and participation. Naming these concepts helps teams recognize hidden strain, design better systems, and build fundraising models that people can sustain over time.

Volunteer-led fundraising

Volunteer-led fundraising is fundraising driven by people who aren’t paid staff but are personally invested in the cause. These efforts succeed when systems empower volunteers rather than burden them with complexity.

Volunteer experience

Volunteer experience is how easy and rewarding it feels for someone to help with fundraising. 

When tools are confusing, or processes are heavy, volunteers disengage—even when they care deeply about the mission. Good experiences turn willingness into action.

Community credibility

Community credibility is the trust nonprofits borrow from the people advocating on their behalf. Peer-to-peer fundraising works because trust travels through relationships, not brands alone.

Fundraising participation density

Participation density measures how many people are meaningfully involved in a fundraising effort, not just how much money is raised. High participation often signals strong community engagement and long-term resilience.

Board readiness

Board readiness reflects how prepared board members are to support fundraising in practical ways. Readiness matters more than willingness. Even supportive boards struggle without clarity and alignment.

Lean nonprofit

A lean nonprofit prioritizes simplicity, adaptability, and efficiency over size.

Lean organizations rely on clear systems and smart tools to move quickly without overextending people. Lean doesn’t mean under-resourced—it means intentionally structured.

When done well, lean models scale impact without scaling burnout.

Invisible labor tax

The invisible labor tax is the untracked work teams absorb to keep fundraising running. This includes manual data cleanup, ad-hoc coordination, and filling gaps between tools. Over time, this tax quietly fuels burnout and limits growth.

Zero-staff organization

A zero-staff organization is a nonprofit run entirely by volunteers, founders, or contractors. For these groups, usability and automation aren’t nice-to-haves—they’re essential for survival.

See it in action

Discover how a zero-staff organization secured crucial support to establish a first-of-its-kind endowment →

‍‍Role overload

Role overload occurs when one person carries too many critical responsibilities at once. It’s common in small nonprofits and often feels normal until something breaks. Over time, overload erodes confidence and decision-making. 

How nonprofit money is classified 💰

Not all dollars are created equal. How money is classified affects how it can be used, reported, and explained to boards and donors. Many operational headaches come from misunderstanding these distinctions.

Restricted funds

Restricted funds are donations given with specific conditions on how they can be used. These restrictions may be set by a donor, funder, or grant agreement.

Restrictions are usually tied to a program, timeframe, or purpose and must be tracked carefully.

Restricted funds aren’t a sign of mistrust—but they do increase administrative responsibility. Misusing restricted funds is one of the fastest ways to damage credibility.

Unrestricted funds

Unrestricted funds can be used wherever the organization needs them most, including operations, staffing, and infrastructure. These funds provide flexibility and stability, especially for small or lean teams.

Despite being less “flashy,” unrestricted funding often has the greatest long-term impact on an organization’s health.

General operating support

General operating support is funding given without program-level restrictions. It allows nonprofits to cover core costs and respond to needs as they arise.

Funders increasingly recognize that strong operations enable strong programs, which is why unrestricted support is often considered more sustainable.

Temporarily restricted funds

Temporarily restricted funds come with conditions that expire over time or after a specific goal is met. Once the restriction is satisfied, these funds can be reclassified and used more broadly.

Understanding when restrictions are lifted is critical for accurate planning and reporting.

Emerging terms shaping nonprofit fundraising (2026) 🎢

Language evolves as the sector evolves. This section captures newer terms and ideas we’re seeing more frequently across nonprofit conversations, data analysis, and media coverage. 

These concepts aren’t fully settled yet, but they point to real shifts in how nonprofits fundraise, operate, and build trust. Think of this as a snapshot of where the language—and the work—may be heading next.

Trust infrastructure

Trust infrastructure refers to the systems, processes, and signals that make donor trust durable rather than purely emotional.

Historically, trust was built through relationships and reputation. Increasingly, it’s reinforced (or undermined) by infrastructure: how reliably donations are processed, how transparently funds are handled, and how systems perform under pressure.

This language is emerging as donors become more aware of platform failures, payout delays, and behind-the-scenes breakdowns. The concept draws from fintech and infrastructure conversations, adapted for nonprofit fundraising.

Small-dollar dominance

Small-dollar dominance describes the growing role of modest, repeat donations as the backbone of modern fundraising.

As corporate giving declines and grassroots campaigns grow, sustainability is increasingly driven by many people giving what they can—consistently. This shift favors trust, participation, and long-term engagement over one-time wins.

The term reflects a broader change in how impact is funded and measured.

Volunteer infrastructure

Volunteer infrastructure refers to tools and systems designed specifically for unpaid fundraisers.

As peer-led events and zero-staff organizations become more common, the need for volunteer-friendly infrastructure has become more visible when systems aren’t designed for volunteers, participation drops.

This term is emerging from practitioner conversations rather than vendor language.

Fundraising-as-operations

Fundraising-as-operations reframes fundraising from a series of campaigns into a core organizational system.

Instead of episodic pushes, this perspective emphasizes consistency, infrastructure, and repeatable processes. It reflects how lean teams actually operate, where fundraising touches reporting, communication, and daily workflows.

The idea draws from startup and SaaS operating models, adapted for nonprofits.

Donor experience gap

The donor experience gap describes the disconnect between how easy giving feels on the surface and how complex systems are behind the scenes.

As donor UX expectations rise, this gap becomes more visible. Supporters notice when things feel smooth—and when they don’t.

The term captures a growing tension between modern expectations and legacy infrastructure.

Crisis velocity

Crisis velocity describes how quickly donations move in moments of urgency.

In disasters or breaking events, attention and generosity spike briefly. Organizations with high crisis velocity can convert that attention into immediate action, while others lose momentum to slow systems or unclear messaging.

As real-time giving data becomes more visible, speed is increasingly understood as preparedness—not luck.

Something missing? 📚

This glossary is intentionally a work in progress.

If there’s a fundraising term you hear all the time but no one explains well—or a feeling you experience that you’ve never quite been able to put into words—I want to hear it.

You can reach me directly at [email protected] 👋

If it’s something many nonprofits are struggling to name, we’ll try to define it here.