The nonprofit world, just like any other sector, has its own set of jargon and acronyms and even some long-time nonprofit professionals are unclear of what some of them exactly mean. Throw these in with the nonprofit organization’s internal acronyms and we end up in quite the puzzle. We made a list of commonly used acronyms in the industry to help sort this out.
P2P (“Peer-to-peer”) fundraising is a method of raising funds for a cause by tapping into a fundraiser’s network of friends, family and coworkers. This is a very powerful form of fundraising because people like to give to people they know. A solicitation from a peer has long been proven to be more effective than one from an organization unknown of by the donor.
P2P fundraising today is considered a wide-ranging category that includes run/walk/ride events, and other types of fundraising, including endurance and DIY/IFE (see below for that one). An example of a P2P fundraising event series is CROP Hunger Walk, which annually holds over 1,000 events in the US.
DIY, yep, for “Do It Yourself,” fundraising (AKA IFE, or “Independent Fundraising Event” just to be extra confusing) is what nonprofits call campaigns where fundraisers basically create their own idea for how they want to fundraise, instead of signing up for a scheduled event run by the nonprofit. This is a type of peer-to-peer fundraising and allows supporters to share their stories and help actively raise funds for the nonprofit. Many nonprofits set up DIY/IFE categories such as workplace giving, donating birthdays, riding for a cause or even hosting a wine night. Fundraisers enjoy having the ability to ask for donations tied to fun and creative ways on their own time.
Sierra Club is a great example of a nonprofit that provides an online platform for DIY fundraising. Their fundraisers can create their own campaigns, hikes, celebration pages (birthday, graduation, wedding, etc.) all through Rallybound’s fundraising platform.
CPDR, or “Cost Per Dollar Raised,” is a very common performance indicator for nonprofits. Cost per dollar raised is calculated by dividing expenses by the amount raised. This number shows the cost of raising a dollar. For example, $10,000 is spent on an event and a nonprofit raises $30,000, then its CPDR would be 10,000/ 30,000 = 0.33 which shows that it cost $0.33 to raise $1. A low CPDR shows that the nonprofit is effectively using resources and not overspending regarding fundraising efforts. It’s a good idea for nonprofits to have this number on hand in case there is an enquiry from a board member, donor or prospect. Some may use this number as the litmus test for the health of the organization.
FMV, or “Fair Market Value,” is the non-deductible portion of the donation, e.g. the value of the good or service someone is receiving. For example, if someone purchases a $100 ticket to a gala, and the meal they will be provided there is worth $60.00, the FMV is $60.00. The tax-deductible portion of their donation will be the remaining $40.00. Here are some IRS guidelines on calculating FMV.
The following acronyms are useful when pulling reports. Most CRM systems come with some variation of these reports built-in:
LYBUNT, or “Last Year But Unfortunately Not This Year” will pull a list of all the donors that gave last year but have not given this year. It helps identify lapsed donors from the previous year so the nonprofit can work on a strategy to get them back.
The SYBUNT, or “Some Year But Unfortunately Not This Year,” report is very similar to LYBUNT but it will identify people that gave at any point in the past but not this year. This can be ideal for tracking lapsed donors in any time parameter, such as the last 3 years, 5 years or even since the nonprofit started.
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