Glossary of Planned Giving Terms
An individual who receives or who is scheduled to receive annuity payments
Appreciated Securities Gift:
A gift of securities with a market value in excess of donor’s cost.
One who receives income from a trust; also one who benefits from the actions of another as to be the recipient of something of value such as life insurance proceeds or a bequest.
A gift made through a Will of personal and/or real property
Profit resulting form the sale or other disposition of a capital asset such as stocks, bonds, or real estate
Charitable Gift Annuity:
A contractual agreement between a charitable institution and a donor whereby the donor contributes cash or assets of a determinable value to the institution in return for a guaranteed payment of a fixed mount for life.
Charitable Remainder Trust:
A trust that benefits designated individuals for life, or a period of years, and then distributes money or property to a charitable organization.
Charitable Tax Deduction:
An allowable adjustment to income, gift, or estate tax liability for the value (or part thereof) of any gift or bequest to a recognized charity.
A bequest that is conditioned upon a specified circumstance.
The value used to determine gain or loss of an asset for income tax purposes. The basis may be cost or a different amount, depending on the law affecting the transaction.
Deferred or Planned Gift:
A commitment or gift established legally during the donor’s lifetime, but whose principal benefits do not accrue to the recipient until some future time, usually at he death of the donor.
Total assets of a deceased person.
Fair Market Value:
For purposes of determining the amount of the donor’s charitable gift, the fair market value of publicly traded securities is generally the average of its high and low trading prices on the date of the gift.
Life Income Gift:
The irrevocable gift of cash and/or securities and/or real estate to a non-profit institution with the donor or his/her designee receiving income or payments from the donated assets through an annuity or trust arrangement.
The process of proving that a Will is genuine and distributing the property in the manner specified in the Will.
The part of a person’s estate remaining after the satisfaction of all debts, charges, allowances, and previous devises and bequests.
The legal right of the survivor of persons having joint interests in property to take the interest of the person who has died.
Provisions for after-death disposition of assets as set forth in a Will.
A set of written instructions to a trustee with management authority over the trust assets, which is to be managed exclusively for the benefit of another.
A written instrument, legally executed, by which a person makes disposition of his or her property to take effect after death.