Tada.
Are we waiting for an admin to come in and say, "this is what we're going to call it and nothing else"? I don't think that's going to happen. If the directors think the word "reference" on th application formats isn't clear enough, they can simply add a sentence or two that clarifies what "reference" means. This thread has already brought the problem to their attention.
As for explaining it to players... well, I'm sure by now every operator in this community is aware of this thread (if not, stop slacking off you bunch of scrubs). All you have to do is say, "References are staff members that have verbally agreed to support your application," or something along those lines. You can't blame the player if he or she still doesn't understand what a reference is after discussing it with a staff member.