501(c) Organization
A 501(c) organization must not be organized or operated for the
benefit of private interests, such as the creator or the creator's
family, shareholders of the organization, other designated individuals,
or persons controlled directly or indirectly by such private interests.
Types of 501(c)(3) organizations:
• Religious
• Educational
• Charitable
•
Scientific
•
Literary
•
Testing for Public Safety
•
Prevention of Cruelty to Children or Animals
•
Community Service
• and
others...
Accountability
This is a board's sense of responsibility, building of trust, and
credibility with the public and constituents.
Addiction Treatment
Addiction is described as giving (oneself) up to something habitually
or compulsively. Treatment facilities work towards helping individuals
overcome their addiction, whether it is alcoholism or gambling,
and help them regain control of their lives.
Advocacy
Advocacy involves representing an organization through articulating
the mission and supporting and defending the organization’s
message. Advocacy also relates to representing and defending the
rights of individuals with disabilities.
Arm’s length transaction
This is a financial transaction where both parties act independently
and agree on a fair price for a product or service.
Association
An association is a membership organization that may be incorporated
or unincorporated.
Board of Directors
The board is the governing body of a nonprofit or for-profit corporation;
the board has specific legal and ethical responsibilities to the
organization.
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Bonds
There are several types of bonds. Insurance bonds are normally three-party
contracts in which one party agrees to guarantee the act, performance
or behavior of a second party, to a third party. The two most common
types are listed below.
Surety Bond
A three party agreement whereby one party (the Surety), is bound
with the person/organization bonded (the Principal), to a third
party (the Obligee or Beneficiary). The Surety Bond ensures that
the Principal will comply with the terms of the contract existing
between the Principal and the Obligee.
Fidelity Bond
An insurance policy that reimburses an employer for employee theft
or embezzlement.
Bylaws
The legal operating guidelines for a board.
Care Manager
A person or entity who is contracted and compensated by a client,
family member of a client or other interested party to exercise
all or part of the powers and duties designated for the care of
an incapacitated person or that person’s estate, or both.
Charity
This is a nonprofit organization providing a public service as defined
by the Internal Revenue Code Section 501(c)(3).
Community/Social Services
These programs are community based, multi-faceted non-profit facilities.
Most program participants have multiple needs. Another category
of participants is consumers in need of services due to lower levels
of income. These facilities generally have 501(c) structure and
provide services to the community to improve the social and individual
welfare of the community.
Conservation
The attempt by the insurer to prevent the lapse of a policy.
Corporate foundation
This is a foundation whose funds are provided by a specific corporation;
representatives of the corporation supervise disbursement of funds.
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Developmental Disability
Individuals grow physically, mentally and emotionally through a
number of developmental landmarks. For example, most children say
their first words between 10 and 14 months of age. Most walk between
12 and 18 months of age.
These milestone events are examples of developmental landmarks.
A child who does not experience these landmarks at the expected
age may have a developmental disability.
A developmental disability is a severe chronic disability which:
• Is
caused by mental or physical impairment or a combination of these
impairments
• Is evident before a person reaches age 22
• Is likely to continue throughout a person's lifetime
• Results in substantial limitations in three or more of
the following areas of life activity:
Specific
Developmental Disabilities include:
• Mental
Retardation
•
Epilepsy
•
Autism
•
Learning Disabilities
•
Cerebral Palsy
•
Down's Syndrome
•
Neurological Impairments
•
Traumatic Brain Injury
•
Spinal Cord Injury
•
Tourette's Syndrome
•
Spina Bifida
•
Neurofibromatosis
Domestic corporation
This is a corporation that is considered domestic in the state where
it has filed its articles of incorporation; it is foreign in any
other state.
Endowment
A fund or collection of assets whose investment earnings support
an organization or a specific project.
Estate tax
This is a federal tax on inheritances over a specific amount; planned
giving can provide a way to avoid paying some or all of this tax.
Executive Committee
An Executive Committee is a committee that has specific powers,
outlined in the bylaws, which allow it to act on the board’s
behalf when a full board meeting is not possible or necessary.
Federated organization
An organizational structure composed of a national umbrella organization
and smaller local chapters.
Form 1023
An application form for nonprofits that want to be recognized as
a 501(c)(3) organization.
Form 1024
A n application form for nonprofits that seek tax-exempt recognition
as any other type of 501(c) organization than a 501(c)(3).
Foundation
This is a tax-exempt nonprofit organization that normally distributes
funds rather than running its own programs.
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Governance
The legal authority of a board to establish policies that will affect
the life and work of the organization while holding the board accountable
for the outcome of such decisions.
Guardian
A person or entity who is appointed by the court to exercise all
of the powers and duties designated for the care of an incapacitated
person or that person's estate, or both.
Incorporation
A legal process in which a group is created and recognized by the
state as an entity separate from the individuals who manage or govern
it.
Indemnification
A guarantee by an organization to rely on its own resources to pay
board members' legal costs for claims that result from board service.
Integrated Delivery Systems
A network of health care providers and organizations which provides
or arranges to provide a coordinated continuum of services to a
defined population and is willing to be held clinically and fiscally
accountable for the clinical outcomes and health status of the population
served. An IDS may own or could be closely aligned with an insurance
product.
Lead gift
A major gift, usually from a board member to launch a capital campaign.
Legal audit
A process of systematically reviewing all legal documents and processes,
usually with professional help.
Liability
Any legal responsibility, duty, or obligation.
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Medical/Physical Rehabilitation
Med/Phys Rehab involves assisting persons with medical/physical
disabilities to attain their fullest physical, mental, social and
vocational independence. Rehabilitation services commonly provided
include: case management, residential, vocational, recreational,
clinical and medical.
Rehabilitation services are typically provided to individuals with
the following:
• Developmental Disabilities
• Spinal Cord Injury
• Other Mobility Impairing Injuries
• Bone Disease
• Chronic Pain
• Traumatic Brain Injury
• Occupational and Sports Injuries
• Nerve or Muscle Disease
• Amputation
• Cardiovascular Diseases
Membership organization
A nonprofit that grants its members specific rights to participate
in its internal affairs.
Mental Health Care
These facilities gear their program primarily to serving
people in need of behavioral rehabilitation services due to mental
or social disabilities. These facilities are non-profit and community
based. These facilities provide one or more of the following services
under the organization's direct control:
• Counseling
• Counseling Centers
• Crisis Centers/Crisis Intervention Centers
• Hotlines
• Telephone Counseling Services
• Vocational Rehabilitation Counseling/Vocational Agencies
• Halfway Group Homes
• Self Help Group Homes
• Advocacy Groups
Mission
The fundamental purpose and reason to exist for an organization.
Mission Statement
This describes the needs the organization was created to fill and
answers the basic question of why the organization exists.
Nonprofit Organization
An organization established for activities other than profit making.
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Nonprofit Sector
This includes organizations that are independent from government
and not part of the for-profit business sector.
Not-for-profit
A term that usually refers to an activity rather than to a nonprofit
organization as an entity.
Operating Foundation
A foundation that actively runs programs rather than just distributing
grants.
Policy
A written plan used to influence and determine decisions or actions
about a specific issue.
Private Inurement
This happens when an insider, an individual who has sizable influence
over the organization, enters into an arrangement with the nonprofit
and receives benefits greater than she or he provides in return.
Public Support Test
An IRS regulation used to determine whether a nonprofit organization
is a private foundation or public charity; involves determining
the source of the majority of funding for the organization.
Quid Pro Quo Contribution
A donation that is given with the condition that the donor receives
something in return.
Quorum
A minimum number of people required at a meeting in order for business
to be conducted.
Relief Organization
An organization that provides humanitarian aid.
Retreat
A day or weekend event where the board or staff go to a location
outside of the office or board room and focus on a specific issue
or a specific group of issues; examples include orientation, strategic
planning, or self-assessment.
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SWOT Analysis
A tool for strategic planning; focuses on strengths, weaknesses,
opportunities, and threats.
Third Sector
A term used to describe the nonprofit sector, as it is separate
from government and the for-profit sector.
Transparency
A system of operation that allows outsiders to see how the organization
operates, makes decisions, and uses resources; an important aspect
to ensure the public trust in an organization.
Values Statement
A written description of the beliefs, principles, and ethical guidelines
that direct a nonprofit’s planning and operations.
Volunteer
A person working without compensation.
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