Charity Jargon Glossary

Gift Aid

Tax relief adding 25% to donations from UK taxpayers

GASDS

Gift Aid Small Donations Scheme — 25% top-up on small cash/contactless gifts

Nisab

Minimum wealth threshold for Zakat obligation

CIO

Charitable Incorporated Organisation

Restricted funds

Donations given for a specific purpose only

Unrestricted funds

Donations usable for any charitable purpose

Reserves

Funds held to manage financial uncertainty

SORP

Statement of Recommended Practice — charity accounting framework

Trustee

Person responsible for charity governance

Objects clause

Governing document clause defining charitable purposes

Beneficiaries

People or communities the charity helps

Matched giving

Donor matches donations pound-for-pound

Payroll giving

Pre-tax salary donations (Give As You Earn)

Pledge

A promise to donate at a future date

Sadaqah

Voluntary Islamic charity

Zakat

Obligatory Islamic charity — 2.5% of qualifying wealth

Fidyah

Compensation for missed fasts by feeding the poor

Kaffarah

Penalty for deliberately breaking a fast

Qurbani

Animal sacrifice during Eid al-Adha

Zakat al-Fitr

Obligatory charity before Eid prayer

Waqf

Islamic endowment held in perpetuity

Lillah

Donations for mosque upkeep

Conversion rate

% of pledges that become actual payments

Donor retention

% of donors who give again next year

Lifetime value

Total revenue a donor generates over time

Cost per pound raised

Cost to raise each pound of income

Public benefit

Legal requirement that charity activities benefit the public

Governing document

Constitution, trust deed, or articles defining a charity

Annual return

Yearly filing required by the Charity Commission

Independent examination

Financial review for smaller charities (under £250k)