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.

There are different taxation regulations for schools and for universities.

The following examples are funds commonly used in educational organisations, with different tax deductibility:


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.


Donors in Synergetic belong to the @ZDN constituency.