GLOSSARY OF TERMS
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The person appointed by the court to manage one's estate when he or she dies without leaving a will. Administrators have the same duties as executors.
The act of pleading or arguing in favor of something such as and idea, or a policy.
A sum of money payable yearly or at other regular intervals, generally for life or for a term of years.
Property such as real estate or stock, which has gone up in value.
The total resources of a person or business or charity, as cash, notes and accounts receivable, securities, or real estate.
An individual or organization named in a will or contract to receive benefits or funds, such as from an insurance policy, trust or retirement plan.
Gifts of any kind made in a will.
Board of Directors (Board of Trustees)
The policymaking body of a nonprofit corporation or trust.
Activities that increase an individual's, population's or community's ability for growth, development, or accomplishment.
Charitable Gift Annuity
Typically an agreement in which one transfers cash or other assets to a charitable organization in exchange for its promise to pay an annuity for life or for a term of years.
Charitable Lead Trust
A trust that pays a fixed percentage of its annual value to a nonprofit or a private foundation. An alternative form can pay the greater of a fixed percentage of the trust's annual value or its net income.
Charitable Remainder Trust
An irrevocable charitable trust created when a donor transfers assets to a trust that will pay an annual income to one or more recipients named by the donor. The trust can run for the recipient's lifetime of for a specified number of years. Then the trust assets go to the nonprofit named by the donor in the trust document.
A trust having a charitable organization as a beneficiary. Specific legal definitions exist in California statues: the Attorney General supervises charitable trusts.
A legal instrument made to modify an earlier will.
A group of people who reside in a specific locality, share government, and often have a common cultural and historical heritage.
Activities that increase the positive outcomes possible within a community by linking individuals and organizations working toward common ends.
A community foundation is a permanent charitable public benefit organization supported by local donors and governed by a board of private citizens who speak for the needs and well being of the community. The Internal Revenue Service designates community foundations as public charities because they raise a significant portion of their resources from a broad cross section of the public each year.
A person who may be appointed to care for the person or property of an incompetent adult, or for the person of a married minor.
An institution that acts for the benefit of another. One example is a bank acting as a trustee.
The original cost of an asset, such as stock, before appreciation or depreciation.
One who makes a gift. The recipient of that gift is called the donee or grantee.
Donor Advised Fund
A fund that provides for ongoing consultation between the donor(s) and the Board of Directors or Board of Trustees on the specific uses of fund assets and income.
A fund for which a donor or donors has permanently designated one or more specific charitable organizations he/she wishes to support.
A fund that gives the Board of Directors or Board of Trustees discretion in distributing fund assets and/or income for community good.
Durable Power of Attorney
A written legal document by which an individual (the “principal”) designates another person (the “agent” or “attorney in fact”) to act on his or her behalf. The power is durable in the sense that the agent's authority endures in the event the individual becomes disabled or incapacitated.
Assets owned and invested by a nonprofit from which generally only the income can be used for operations, donations or grants. The principal amount of gifts and bequests that are accepted are subject to a requirement that the principal be maintained intact and invested to create a source of income. Donors may require that the principal remain intact in perpetuity, of for a defined period of time or until sufficient assets have been accumulated to achieve a designated purpose.
The property of a deceased person.
A tax imposed at one's death on the transfer of wealth to private beneficiaries. A taxable estate is valued after taking allowable deductions, including an unlimited deduction for gifts to non-profits. An exemption is also allowed.
The person named in a will to manage the estate. This executor is a fiduciary who must collect the property of the estate, pay any debts and expenses of administration and distribute the assets according to the will.
An expendable fund allows for the spending of the principal of the fund.
A person or institution legally responsible for the management, investment and distributions of funds. Examples include trustees, executors and administrators.
Field of Interest Fund
A fund that provides donors the opportunity to designate one or more areas of concern, such as education, the arts, youth services, senior services or economic development.
Gift acceptance guidelines
Guidelines, policies or procedures to help charitable organizations avoid accepting gifts that might result in undue expense or loss.
Tax on gifts, which is paid by the donor, rather than by the recipient. The same exemption applies to gift taxes as applies to estate taxes, and can be used against either tax (up to the limit of the single exemption per individual).
Gift-Tax Annual Exclusion
The provision in the tax law that exempts from federal gift taxes the first $10,000 in present-interest gifts a person gives to each recipient during a year.
A gift from an individual or organization, usually given through a competitive process. Grantees typically sign a contract with the proposed grantor guaranteeing grant funds will be used in an agreed upon manner.
The individual or corporation that makes a grant of money or property to another person, for example, grantor of a trust, grantor of a deed of property.
An individual appointed by the court appointed to manage the rights and/or property of a minor person incapable of taking care of his or her own affairs.
The person who inherits property under state law.
The monetary payment received for goods or services, or from other sources, such as rents or investments; revenue; receipts.
An organized and coordinated strategy to address the needs, issues or desires of a population or community.
A decedent who died owning assets in his or her own name but without a will.
Unalterable, not to be changed or annulled.
The ownership of property by two or more people, usually with the right of survivorship.
Leave a Legacy
An educational effort to introduce planned giving to non-profits, donors and the community at large. Leave a Legacy is a collaborative project led by a group of nonprofit leaders.
A revocable inter vivos trust established by a grantor with some or all of his or her property. Living trusts are commonly used in place of wills, to avoid probate.
A legal document directing that the maker's or signer's life is not to be artificially supported in the event of a terminal illness or accident.
A deduction allowing for the unlimited transfer of any or all property from one spouse to the other generally free of estate and gift tax.
A gift made in memory of a deceased person.
An organization, usually a corporation or trust, formed not for private gain but for public or mutual benefit purposes. These organizations are exempt from taxes. Contributions to public benefit organizations (called 501(c)(3) organizations) are usually tax deductible for donors. Contributions to other types of nonprofits (mutual benefit organizations, business leagues, sports clubs, etc.) are usually not tax deductible to donors.
Organizational Endowment Fund
Funds that enable nonprofits to build income for the long-term benefit of the organization.
Movable property as contrasted with real property, which is fixed in place. Personal property includes, for example, money, investments, furniture, automobiles, and equipment.
From the Greek word for “love of mankind”. Altruistic concern for human beings, especially as manifested by donations of money, property or work to needy persons or institutions advancing human welfare.
A planning process that considers the effects of a gift to charity and the donor's estate.
The promise to gift a certain amount of money over a period of time.
Pooled Income Fund
A trust funded by a number of donors, each donor receiving an income for life.
The number or body of inhabitants of a particular race, class, or group in a place.
Power of Attorney
A written legal document that gives an individual the authority to act for another.
All organizations that are tax exempt under Internal Revenue Code Section 501 (c)(3) but do not satisfy one of the exceptions in Section 509. Private foundations are generally Section 501 (c)(3) organizations that are created, funded, and operated by one person or a family. They usually are grant-making organizations and do not do fund raising. There are a few private foundations, called “operating private foundations,” that are generally treated as public charities. Private foundations may be formed as either corporations or trusts.
The court process for administering a decedent's estate, including determination of the validity of a deceased person's will and gaining control of assets, paying debts and expenses and distributing the remaining assets to heirs and beneficiaries.
Real estate, cash, securities or any other type of possession.
An interest in land, or property permanently affixed to land such as a building.
The residual ownership of property left in trust or in a life estate after the interest of a previous beneficiary or the life tenant has terminated.
Capable of being annulled or cancelled.
A fund that is established for the purpose of scholarship. These funds can be set up as Donor Advised or Field of Interest Funds.
The person who creates a trust. That person can also be called the grantor or the trustor.
A trust that is created upon death of the grantor.
An individual who dies leaving a will or testament in force.
The Investment Fund for Foundations is a non-profit cooperative founded in 1991 by a network of foundations that wanted to improve their investment returns by having available a series of multi-manager investment vehicles and the resources that would enhance the fiduciaries knowledge of investing.
A trust is not technically an “organization” it is the set of rights and responsibilities between the trustee and beneficiary with regard to the assets of the trust (the “corpus”). The legal requirements to establish a trust are a grantor, a trustee, a beneficiary, corpus and a legal purpose.
The individual or institution entrusted with the duty of managing property placed in the trust. A “co-trustee” serves as trustee with another. A “contingent trustee” becomes trustee upon the occurrence of a specified future event. A “successor trustee” becomes trustee upon the death of the original trustee or may occur it the trustee is unable or unwilling to serve. A successor can succeed a successor.
The person who establishes the trust. There can be more than one trustor. Also referred to as the grantor or the settlor.
These funds (also called Discretionary Funds) entrust the Foundation (or other charities or government entities) Board of Directors (Board of Trustees) with responding to changing needs and emergencies, to support the creation of innovative responses to community problems, and to enhance the quality of community life.
A legally executed document that directs how and to whom a person's property is to be distributed after death.