A section of the Internal Revenue Code in the US which establishes that organizations which meet particular criteria can be tax exempt. Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations which hold 501(c)(3) status can be considered to be in compliance with US nonprofit regulation.
The series of communication and marketing activities that an organization carries out to encourage supporters to make financial contributions to their project. (See Planning your First Campaign)
Most crowdfunding platforms retain a percentage of the funds raised on the platform in order to cover their administrative or operating costs. This varies from 5% - 10%. HIPGive does not charge an administrative commission but only requests that crowdfunding organizations cover the cost of the payment processor. As a nonprofit organization ourselves, we aim to maintain the provision of high quality services at the lowest possible cost to the nonprofits we serve.
The creation and promotion of content assets for the purpose of generating brand awareness, traffic growth, lead generation, or customers. (Hubspot)
A special event or initiative in which many organizations run simultaneous campaigns and can compete for matching funds. By coinciding with special giving days or celebrations and with the added incentive of matching funds, they raise the profile of the crowdfunding campaigns and motivate more generous giving.
The process of raising funds for a specific project from a large number of individuals, usually via an online platform or website. (See What is Crowdfunding?)
An interface on HIPGive which is the starting point for accessing and editing projects on HIPGive. To access the dashboard users must log in with their username and password. The dashboard also displays a record of each individual’s donations to projects, should they exist.
The promotion of products or services using a range of digital communications. As an umbrella term, it includes online assets such as website, blogs, ebooks, social media, as well as online coverage (press articles), and brand assets such as logos.
Donation based crowdfunding
Many different types of crowdfunding exist, including equity, rewards-based or lending crowdfunding for business ventures and social enterprises. Most nonprofit organizations rely on donation based crowdfunding in which individuals contribute funds for social impact projects without expecting any tangible benefit in return.
An individual who makes a voluntary contribution to a charitable cause. In the context of crowdfunding, the contribution is financial.
The group of donors who contribute regularly to a nonprofit organization. In some cases, also defined as the group of prospective donors from which you could reasonably expect to receive financial contributions in the future.
A nonprofit organization with legal, tax-exempt status (valid 501c3) who vouches for and receives funds on behalf of an organization who does not have this status. (See FAQ/What is a Fiscal Sponsor.)
Hispanics in Philanthropy / HIP
Hispanics in Philanthropy is a nonprofit organization whose mission is to strengthen Latino leadership, voice, and equity. HIP launched HIPGive in 2014 to boost the culture of philanthropy among and toward Latinos across the Americas, and to strengthen civil society by providing tools and resources to increase organizations’ ability to raise funds online.
A methodology that uses digital marketing assets, especially content, to attract, convert, close, and delight customers online. (Hubspot)
Matching funds enable organizations to receive additional money on top of the direct donations they receive in their campaign. The most straightforward execution of a matching funds initiative is to offer a match on a 1:1 ratio while funds last - that is, for every $1 that an organization crowdfunds, it will receive an extra $1 from the matching funds pot, until all the funds in the pot have been distributed. However other models can also be used and we recommend you always read the specific rules and regulations of the matching funds in the contest in question.
An organization whose purpose is something other than making a profit. They are normally dedicated to furthering a social cause and have a Board of Governors as their principal decision making structure. In the US nonprofits can apply for tax exempt status, awarded as 501c3 status. In Latin America each country has their own regime for recognizing and awarding tax exempt status.
A third party organization or company whose software ensures payments made through a crowdfunding platform are made securely. For the provision of this service, the payment processor retains a small percentage of all payments and often charges a small additional fee for each transaction.
A website that brings together a series of technological solutions to enable a particular service. Donation based crowdfunding platforms act as a market place allowing donors to browse different social impact projects and donate quickly and securely using a credit card to the project of their choice.
Peer to peer fundraising
The practice of enabling current donors, volunteers and other individuals to fundraise on behalf of a nonprofit organization or social impact project.
Gifts, rewards or other mechanisms to show appreciation to a donor and thank them for their contribution to a crowdfunding campaign.
The activity or set of activities that the nonprofit wishes to carry out but for which they require funds. The project is therefore the object of the crowdfunding campaign. In HIPGive all the projects are to be implemented by nonprofit organizations and should benefit primarily Latino populations.
Search engine optimization (SEO)
The process of optimizing your website to ‘rank’ higher in search engine results pages, therefore increasing the amount of organic (or free) traffic that your website receives. (Hubspot)
The provision of information that people will be more likely to believe or act on because it comes from a source which is deemed trustworthy.
Social media marketing
The practice of promoting your brand and your content on social media channels to increase brand awareness, drive traffic, and generate leads for your business. (Hubspot)
The activity of sharing stories in written, pictorial or verbal form. When applied to crowdfunding campaigns, it enables complex information to be presented in a relatable, emotional and/or memorable way, thus being more likely to inspire the audience to give.
A means by which donors to HIPGive projects can choose to make a small, additional donation that helps us cover our operations and means we can avoid passing on extra fees to the nonprofits we serve.
The ability to send up-to-date news and information about the progress of the campaign to all those who have donated so far. Nonprofit organizations can avail of this feature through their project dashboard.
A seminar or training event conducted over the internet.