Introduction to Development
The following explains some of the terms and concepts used in Development.
What is a fund?
A fund is the 'umbrella' under which donations are treated for taxation and distribution purposes. A fund determines where money raised in an appeal is to be used in the organisation. Any money raised from an appeal can be contributed to a fund.
Note: There are different taxation regulations for schools and for universities.
The following examples are funds commonly used in educational organisations, with different tax deductibility:
Fund | Tax deductibility status |
|---|---|
School building fund | Tax deductible. |
Endowment fund | May not be tax deductible. |
Scholarships fund | May not be tax deductible. |
Library fund | Tax deductible. |
What is a pledge?
A pledge is a promise to donate money to your organisation.
Once a pledge is fulfilled, it becomes a donation. A partially fulfilled pledge remains a pledge until it is fulfilled.
What is an appeal?
You can have general fundraising programs and fundraising programs for a specific reason. The specific programs are known as appeals.
Appeals are the way in which you differentiate between the fund raising programs within your organisation.
Appeals are time-based and the money raised from an appeal must be contributed to funds.
For example:
- Annual appeal - 2013
- Annual appeal - 2014
- The swimming pool appeal
- Bequest program
- The 50th jubilee library appeal
- Towards 2015 - performing arts complex appeal.
Constituency
Donors in Synergetic belong to the @ZDN constituency.