Introduction to Development

Modified on Mon, 20 Apr at 12:22 AM

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.