Another term for a set of letters such as CIA or FBI is initialism.
An abbreviation consisting of the first letter or letters of words in a phrase (for example, IRS for Internal Revenue Service), syllables or components of a word (TNT for trinitrotoluene), or a combination of words and syllables (ESP for extrasensory perception) and pronounced by spelling out the letters one by one rather than as a solid word. (from American Heritage Dictionary of the English Language)
I've always preferred to use that term, and leave abbreviation to denote a shortened word.
For some reason the developers with whom I work have an easier time grasping that concept when I'm delivering a Grammarslap 101 class.
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"The gift which I am sending you is called a dog, and is in fact the most precious and valuable possession of mankind" -Theodorus Gaza
Baby Jesus cries when the fat redneck doesn't have military-grade firepower.
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