Nonprofit Kit For Dummies, 6th Edition

Appendix A

Glossary

annual report:

A report published by a nonprofit organization, foundation, or corporation describing its activities and providing an overview of its finances. A foundation’s annual report usually lists the year’s grants. Many states require a 501(c)(3) nonprofit to provide an annual financial report to members or board members.

articles of incorporation:

A document filed with an appropriate state office by persons establishing a corporation. Generally, this filing is the first legal step in forming a nonprofit corporation.

board of directors:

Individuals recruited, nominated, and elected to serve on a nonprofit organization’s governing board. The board is responsible for overseeing the nonprofit’s activities. Boards meet frequently and vote on the affairs of the nonprofit and are financially responsible for the nonprofit’s funds on deposit and any irregularities in financial reporting.

bylaws:

Rules governing a nonprofit organization’s operation. Bylaws often outline the methods for selecting directors, forming committees, and conducting meetings.

capacity building:

A general term used to describe activities that help a nonprofit organization strengthen its internal operations so that it can do its job better. Examples include staff and board training, computer and financial-management systems upgrades, and consultant assistance for planning.

capital campaign:

An organized drive to raise funds to finance an organization’s capital needs — buildings, equipment, ...