Charitable Gift Annuity:A gift instrument that provides payments during a donor’s lifetime in return for a charitable gift, which, after the donor’s death, is used for the ongoing support of the community or other nonprofit purposes designated by the donor.
Charitable Remainder Trust:A gift instrument that provides income for life or a defined period of time to the donor or other named beneficiaries that is ultimately used for the ongoing support of the community or other nonprofit purposes designated by the donor.
Closely Held Stock:Stock from a corporation for which most of the voting stock is held by a small number of shareholders, but which is still publicly traded. These shares are generally not available to the public.
Community Foundation: A community foundation is a tax-exempt, nonprofit public charity composed primarily of permanent funds established by many separate donors of the long-term diverse, charitable benefit of the residents of a defined geographic area. Community foundations provide an array of services to donors . There are more than 500 community foundations across the United States today. The Cleveland Foundation is the oldest; the New York Community Trust is the largest.
Donor Advised Fund: A fund created by an individual, corporation or other entity that allows the donor to be actively engaged in the grantmaking process. Donor advisors may make recommendations from their fund to specific charities, or work with the ACF staff to identify organizations in a particular field of interest or service area. This kind of fund enables the donor to designate a successor generation of advisors to carry on the tradition of active philanthropy with a family. A donor advised fund is the most popular alternative to a private foundation.
Donor Advisor:A donor with a donor advised fund.
Donor Recommendations:A request by a donor advisor to make a grant from his or her fund to a named nonprofit recipient for a specified or general purpose.
Payout Requirement: The minimum amount that a private foundation is required to expend for charitable purposes (includes grants and necessary and reasonable administrative expenses). In general, a private foundation must pay out annually approximately 5 percent of the average market value of its assets.
Philanthropy: Philanthropy is defined in different ways. The origin of the word philanthropy is Greek and means love for mankind. Today, philanthropy includes the concept of voluntary giving by an individual or group to promote the common good. Philanthropy also commonly refers to grants of money given by foundations to nonprofit organizations. Philanthropy addresses the contribution of an individual or group to other organizations that in turn work for the causes of poverty or social problems-improving the quality of life for all citizens. Philanthropic giving supports a variety of activities, including research, health, education, arts and culture, as well as alleviating poverty.
Pledge: A promise to make future contributions to an organization. For example, some donors make multiyear pledges promising to grant a specific amount of money each year.
Scholarship Fund:A fund established to provide scholarships to students who meet specific criteria as determined by the donor.
Special Project Fund:A fund that will have its assets contributed or granted out promptly, generally within six month; special project funds are charged higher administrative fees than standard fees.