The following is a list of commonly used terms, with
definitions as they are commonly used at the Foundation.
501(c)(3)
Refers to the section of IRS code that
designates the criteria for a public charity; commonly
used to describe a non-profit organization
Advisory Board
A group of individuals appointed to
make recommendations on the grantmaking and focus of
affiliates to the Foundation
Affiliate
A component of the Foundation that serves a
particular geographic area within the Foundation's area
of service
Annual Report
Report produced by the Foundation for
the community, donors, nonprofits, and others served by
the organization
Board of Directors
The governing body appointed to
hold fiduciary responsibility for the organization; the
Board of Directors makes policy decisions that guide the
work of the organization
CEO
Chief Executive Officer
CFO
Chief Financial Officer
Committee
Particular area of service to the Foundation; some of
the committees at the Foundation include Finance,
Development and Marketing & Communications
Community foundation
A 501(c)(3) organization that can
accept donations of all sizes and use income from
donations to benefit the charitable work in a particular
geographic area
Component fund
A fund managed by the Foundation
Council on Foundations
National organization that
provides standards and assistance to foundations
throughout the United States and abroad; the Foundation
has committed to complying with the Council's standards
for community foundations; information about the
organization and standards can be found at www.cof.org
Designated fund
A fund that has been designated to
benefit one or more agencies
Donor advised fund
A fund that has an advisor or
advisory board that makes recommendations on grants made
from the fund
Donor advisor
A donor who holds a donor advised fund;
the donor advisor makes recommendations on grants made
from a donor advised fund
Due diligence
One of the responsibilities of a grantmaking organization; due diligence is the process
of confirming that a grant application is bona fide, and
that the applicant is eligible and fiscally sound
Endowment fund
A fund created in support of the work
of a particular nonprofit organization
Field of interest fund
A fund that provides support
for a broad field of interest; the field of interest is
specified at the time of the fund's creation
Grant
Money given to a qualified nonprofit
organization for charitable purposes
Investment policy
The policy that governs how the
Foundation's funds are invested and managed; the
investment policy provides benchmarks for investment
performance, diversity of funds, and monitoring of
investments.
Nonprofit
Refers to a nonprofit organization, or a
501(c)(3) organization, whose purpose is to carry on
charitable work in the community
Philanthropy
The practice of charitable giving; the
Greek origin means "love of mankind"
Planned gift
A gift that has been planned by a donor,
and provided for in his/her estate plan
Spending policy
The policy that governs how the
Foundation's money is spent on programs and
administration; Foundations typically set forth a 5%
spending rule to ensure perpetual growth of remaining
funds that will keep pace with inflation in perpetuity
First Community Foundation of PennsylvaniaFirst Community Foundation of Pennsylvania
