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Non-profit glossary of terms

There are some key words that are used quite often in the non-profit realm. You may occasionally hear them used, and not know exactly what they are, or how they differ from another. This is a brief glossary of some of the most common terms. Go ahead, use them in a sentence today!!
 
Community Development 
 
Community development is a holistic approach to development that embraces not only economic development, but other aspects of growth as well. Community development is the process of building communities on a local level while strengthening community social networks, member involvement, and community welfare. Community development is usually encouraged through non-profit activity and meeting community, not business,  needs.
 
Grassroots Organization
 
When we think of roots, we think of something at the source or origin. This is exactly the implication of a grassroots organization. Anything grassroots refers to people to people, a very local level of involvement. In fact, the most local level of involvement one can find. A grassroots organization involves people trying to instigate changes or movements from the ground up, starting from their own community. When an organization refers to itself as ‘grassroots’, it means they are working directly at the site or with the communities they are assisting, rather than trickling down through larger organizations, hierarchies, or bureaucracies.
 
NPO
 
NPO is an acronym for Non Profit Organization, and are also known as 501(c)3s. NPOs are organizations that are nonprofit entities where donations are tax-deductible by law. Non-profits have characteristics that distinguish the from a business enterprises in that they exist not to make money but to provide charitable services, receive financial contributions from donors who do not expect return, exist to provide goods or services to individuals or communities without profit, and provide tax deductions for donors. It is a popular myth that individuals working within the non-profit sector must do so without salary. Salaries are permitted as long as a non-profit is organized and operates in accordance to non-profit regulations. Common synonyms are not-for-profit organization, charity, and foundation.  
 
NGO
 
NGO is an acronym for Non Government Organization, or an organization that has no affiliation with any government or business establishments and are not controlled by such entities. NGOs are almost synonymous with non-profits, however they more popularly refer to international development agencies. They are generally focused on promoting human rights and social causes. They are also characterized by a higher level of activism.
 
Permaculture
 
Permaculture is a system that seeks harmonious integration of environment and people to meet basic needs in a sustainable way. This holistic ecological approach to the design and development of communities takes into account food production, structures, technologies, energy, natural resources, landscape, animal systems, plant systems, and social and economic structures. Permaculture is built upon an ethic of caring for the earth and interacting with the environment in mutually beneficial ways. Permaculture integrates many systems which need to harmonize and complement each other in order to function. Permaculture is a delicate and complicated system to embrace, but a positive one to strive for.
Sustainable Development
 
To sustain something is to insure that it will exist in the future. Sustainable development is a method of development that does not deplete resources so that they are present in the future. In other words, development which meets the needs of the present without threatening the ability of future generations to meet their own needs. Sustainable development also implies that needs can be met within a particular body and are not wholly dependent on outside assistance. This type of development can be applied to communities, agriculture, and education.
 
Transparency
 
Something that is transparent can be viewed from both sides, one can see light pass directly through it, like glass. In the non-profit sector, this term refers to financial transparency. Non-profits are expected to report all financial activity and use of donations for the public. Many non-profits have such information published on their websites, and most legitimate organizations have full reports ready upon request. Non-profit transparency and accountability is important in fighting against those who abuse non-profit status and in establishing the public’s trust in non-profit organizations.
 
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Understanding non-profit terms is very important in understanding the non-profit activity in your community and our world. Any questions or inquiries concerning these terms can be emailed to npoindo@yahoo.com
 
E-mail: npoindo@yahoo.com
 
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