Posts Tagged ‘Glossary – Trusts and Fundations – Finance and governance’

“the degree to which an organisation is able to sustain its projects, products or services financially.” In trust fundraising terms, funders want to understand how reliant a charity is likely to be on their support and on other funders in the long term.   More and more, funders wish to help charities move away from a…

“Where a project or service is funded by more than one contributor.”  

“Funding which is given over more than one year (but where only one application is required).” e.g. a total gift of £60,000 given over three years in equal instalments of £20,000. 

“The decision by trustees to close the trust by spending the endowment alongside the annual interest payments”.  This can sometimes result in larger than average grants for beneficiaries.  Be sure to look after your trust donors, regardless of how much they’re giving. 

“A large sum of money placed into investments which generates annual funds each year.”  Most charitable trusts and foundations are set up this way.  It’s typical for interest earned from investments each year to be distributed in the form of grants.  Sometimes some or all of the capital will be added to the original investment,…

“A contract presented alongside a pledge / gift which sets out the terms under which funding is offered.” This will often include clauses around the timescales in which money needs to be spent, the items which can be purchased, reporting and publicity requirements.

“The promise of a grant / gift by a supporter before the money is actually received by the recipient charity.” 

“The practice of presenting a budget which includes overheads (usually as a percentage) to ensure that core costs are covered by contributors to specific projects”. 

“A much shorter version of an Annual Report / Annual Review.  Designed to be easily read and enjoyed by supporters.  Usually contains a summary of management accounts and specific data on the difference a charity makes”.   An Impact Report often sets out a powerful, long term legacy vision to excite and inspire supporters.

“An annual document which contains management accounts plus additional information (not required by law) such as trustees’ review, summary of activities, strategic plans, case studies and a space to recognise and thank donors.” Also known as an Annual Review