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Glossary of Terms: C-D

Capital Campaign · Cause-related Marketing · Chair of the Board · Code of Ethics · Committees · Conflict of Interest · Copyright · Curriculum Vitae (CV) · D&O Insurance · Determination · Development · Donor Acquisition · Donor Renewal · Duty of care · Duty of loyalty · Duty of obedience

A-B | C-D | E-Z

Capital Campaign
A fundraising program designed to generate contributions for a charitable organization's capital, usually for a building, a major item of equipment, or an endowment fund. See Fundraising.

Cause-related Marketing
Fundraising techniques used to generate nonprofit revenues, involving related and/or unrelated activities; the term usually includes charitable sales promotions and other forms of commercial co-ventures. See Fundraising.

Chair of the Board
An individual selected, usually by a board of directors, to be the leader of the board. This is not usually an officer position, although it can be when so provided in articles of incorporation and/or bylaws.

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Committees
A subgroup of a board organized to help manage the board's work. Committee members can include non-board members, and be used as a method of introducing that individual to potential board service. See Governance.

While overall committee structures and responsibilities vary from organization to organization, the most important committees for a board to have include executive, development, finance, marketing, public relations, nominating, and planning. Typical committees:

Development Committee: This committee is composed of board members and is sometimes called the fund-raising committee. It oversees the planning and coordination of fund-raising efforts. This includes ongoing annual fund-raising for operations and the solicitation of large gifts. It may also include planning for fundraising events and for capital campaigns, although these are sometimes handled by separate committees in larger organizations.
Events or Benefit Committee:
This committee, composed of board members, organizes the planning of special events, such as fund-raising benefits, including determining invitations, event location, overseeing budget, and soliciting attendance.
Executive Committee:
A subgroup of directors of an organization that has particular influence over the affairs of the organization generally comprised of members of the board. Generally conceived of as the chief coordinating committee of the board, mapping out how the board's business should be conducted, setting agendas, and organizing the activity of other committees.
Finance Committee:
Generally headed by the treasurer, it is composed of board members of the organization. It is empowered to study and make recommendations regarding all financial procedures and controls, assist in the preparation and presentation of budgets, and review all financial statements. This committee reviews audit results and recommends the retention of the auditor. An accountant is invaluable on this committee.
Investment Committee:
For organizations that own significant assets that require investment (such as endowment funds), a special committee oversees the management of these funds.
Nominating Committee:
This committee, composed of board members, identifies, screens, and recommends prospective board members. Members of this committee generally also assist in the recruitment and orientation of new board members.
Personnel Committee:
This committee, composed of board members, develops personnel policies, recommends salary ranges, evaluates the executive director, reviews benefit packages, and handles grievances when board involvement is necessary.
Planning Committee: This committee, composed of board members, coordinates long-range planning.
Program Committee: This board committee works closely with staff to review the program activities of the organization and plans for the future.

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Code of Ethics
A non-legal statement of principles established by a nonprofit membership organization and used to guide the professional behavior of its members.

Conflict of Interest
A situation in which the personal or professional concerns of a board member or a staff member affect his or her ability to put the welfare of the organization before personal benefit.

Copyright
The exclusive right of the author or creator of a literary or artistic property (such as a book, movie or musical composition) to print, copy, sell, license, distribute, transform to another medium, translate, record, perform or otherwise use (or not use) and to give it to another by will.

A work should be registered with the U.S. Copyright Office by submitting a registration form and two copies of the work with a fee which a) establishes proof of earliest creation and publication, b) is required to file a lawsuit for infringement of copyright, c) if filed within three months of publication, establishes a right to attorneys' fees in an infringement suit.

Copyrights cover the following: literary, musical and dramatic works, periodicals, maps, works of art (including models), art reproductions, sculptural works, technical drawings, photographs, prints (including labels), movies and other audiovisual works, computer programs, compilations of works and derivative works, and architectural drawings.

Not subject to copyright are short phrases, titles, extemporaneous speeches or live unrecorded performances, common information, government publications, mere ideas, and seditious, obscene, libelous and fraudulent work.

Curriculum Vitae
An artistic or academic resume that lists published works, works of art or exhibitions and a short biography.

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D&O Insurance
"Directors and Officers Insurance;" insurance that protects board members and top staff personnel from liability created by board decisions or actions.

Determination Letter
An official notification by the IRS stating that a nonprofit is recognized as a tax-exempt organization.

Development
The process of growing an organization's base of financial support by offering donors unique, value-added reasons to give to your organization.

Donor Acquisition
A fundraising program where the emphasis is on the acquisition of new donors to a charitable organization, also known as "prospecting." See Fundraising.

Donor Renewal
A fundraising program where the emphasis is on acquiring contributions from those who have previously given to the charitable organization. See Fundraising.

Duty of Care
An expectation that a board member exercises reasonable care when making decisions.

Duty of Loyalty
An expectation that a board member remains faithful and loyal to the organization.

Duty of Obedience
An expectation that a board member remains obedient to the central purposes of the organization and respects all laws and legal regulations.

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