Glossary of Fundraising Terms

Annual Fund:  A recurring yearly fundraising program that takes place within one fiscal year and seeks gifts from all constituents. Annual gifts must be spent during the year in which they are received and are usually unrestricted.

Capital campaign: An intensive multi-year (usually 3-5 years) fundraising effort to secure gifts and pledges for a specific purpose, such as physical improvements, new construction, expansion or creation of an endowment, or a combination of all three.

Bequest: A transfer of personal property such as cash, securities, or other property through an individual’s will.

Endowment: Funds are permanently held and invested by the school. A small percentage of their accrued interest is used as income for the school’s annual operations. An endowment fund is sometimes named or directed, for example, to scholarship or athletics.

Planned giving:  A major gift strategy, which incorporates long-term planning and requires a legal or accounting structure, i.e. bequests or charitable remainder trusts.

Pledge: A pledge is a promise to make a gift over time. Making a pledge is a way an individual can make a larger gift by spreading it out in installments over a specific period.

SA Senior Endowment: Each year half of each senior family’s annual gift goes into a class endowment fund, which is then invested and will continue to grow. At their 10th year reunion, each alumni class will decide how they would like the income from their class endowment fund directed to benefit Sonoma Academy.