Giving & Nonprofit Glossary: Plain-English Definitions

The words you'll run into when you give, volunteer or start a nonprofit, in plain English.

501(c)(3): The section of the tax code covering charitable, religious, educational and similar organizations. Gifts to them are generally tax-deductible. They may not campaign for or against candidates.
501(c)(19): The section covering many veterans organizations, such as posts and auxiliaries. Gifts to qualifying ones can be deductible.
Adjusted gross income (AGI): Your total income minus certain adjustments. Charitable deduction limits and, starting in 2026, the 0.5% floor are based on it.
Automatic revocation: Loss of tax-exempt status when an organization fails to file its required annual return for three consecutive years.
Board of directors: The group legally responsible for overseeing a nonprofit, including its finances and its chief executive.
Community foundation: A public charity that pools gifts from many donors and makes grants to nonprofits in a particular area.
Donor-advised fund (DAF): A charitable account held by a sponsoring charity. The donor gives to it, then recommends grants over time.
EIN: Employer identification number, the nine-digit number the IRS assigns to an organization. Use it to look up a charity precisely.
Fiscal sponsor: An established nonprofit that takes a project under its umbrella, accepting deductible donations and handling administration for it.
Form 990: The annual information return most tax-exempt organizations file with the IRS. It's public and shows finances, programs, pay and governance. Smaller groups file the 990-EZ or the 990-N e-Postcard.
Form 1023 / 1023-EZ: The applications for recognition of 501(c)(3) status. The EZ version is for smaller organizations and has a lower fee.
Form 8283: The IRS form you file when your noncash charitable deductions total more than $500.
Giving circle: A group of people who pool their donations and decide together where to give.
In-kind gift: A donation of goods or services instead of money.
Matching gift: An employer's or donor's promise to match others' gifts, often dollar for dollar up to a limit.
NASCO: The National Association of State Charity Officials, whose website links to each state's charity regulator.
Overhead: Management, general and fundraising expenses, as opposed to program spending.
Private foundation: A charity usually funded by one family, person or company, which mostly makes grants. It files Form 990-PF.
Public charity: A 501(c)(3) that receives broad public support or performs certain activities, such as churches, schools and hospitals. Most charities people give to are public charities.
Qualified charitable distribution (QCD): A transfer from an IRA directly to a charity by someone age 70½ or older. It can count toward required minimum distributions and isn't included in taxable income.
Quid pro quo contribution: A payment that is partly a gift and partly for goods or services, like a gala ticket. For payments over $75, the charity must disclose the value of what you received.
Restricted gift: A gift the donor limits to a specific purpose. Unrestricted gifts can be used wherever the need is greatest.
Skills-based volunteering: Volunteering professional skills, such as accounting, design or trades, often called pro bono work.
Tax Exempt Organization Search (TEOS): The IRS's free online tool to confirm an organization's tax-exempt status and view its filings.
Written acknowledgment: The receipt a charity must give you for any single gift of $250 or more, stating the amount and whether you received anything in return.