Planned Giving Glossary

ActuarialIn gift planning, it refers to the factors used to calculate the value of lifetime payments to individuals.
AppraisalAn assessment of the value of a piece of property. Donors contributing real or tangible personal property (art, books, collectibles, etc.) must secure an independent appraisal of that property to substantiate the value they claim as a charitable deduction.
Appreciated PropertySecurities, real estate, or any other property that has risen in value since the individual acquired it. Generally, appreciated property held by a donor for a year or more may be donated at full fair market value with no capital gains cost.
BasisThe donor’s purchase price of an asset, possibly adjusted to reflect subsequent costs or depreciation. If you bought stock for $100 per share and sold it for $175, your cost basis in the stock is $100 per share.
BeneficiaryThe recipient of a bequest from a will or a distribution from a trust, insurance policy, or retirement plan.
BequestA gift of property or cash to an individual or organization under a will
Capital Gains TaxA federal tax on the appreciation in an asset between its purchase and sale prices.
CodicilAn addition to a will that either modifies or revokes part of it.
Cost BasisSee Basis, above
DonorOne who makes a gift
EstateAll of the real or personal property in which a person has a right or interest.
ExecutorThe person named in a will to administer the estate.
Fair Market ValueThe price that an asset would bring on the open market.
GrantorThe individual transferring property into a trust.
Income InterestIn a trust, the right to receive payments from the trust for lifetime or a term of years.
IntestacyWhen a person dies without a valid will, state laws will determine how the individual’s estate will be divided by any heirs. If there are no heirs, then the state absorbs any remaining probate assets.
Irrevocable giftA gift that cannot be annulled, undone, or changed.
Life Income GiftA Planned Gift that makes payments to the benefactor and/or other beneficiaries for life or a term of years, then distributes the remainder to charity.
Personal PropertySee Tangible Personal Property.
Planned GivingStructuring a charitable gift to maximize personal, financial, and tax benefits for the donor — and a meaningful gift to charity — at the same time.
Power of AttorneyLegally appointing an individual as your “Attorney-in-Fact,” allowing that person to take charge of your financial affairs in the event of incompetency or disability.
Present ValueThe value, in today’s dollars, of assets to be received at some future time.
PrincipalThe initial sum invested or the remainder of that sum after payments have been made.
Qualified AppraisalA written appraisal conducted by a knowledgeable professional to determine the fair market value of property (other than marketable securities) donated to a charity. If the donor wishes to use the value of the donated property for a charitable income tax deduction, the appraisal must be obtained by the donor and attached to his or her tax return only if the property has a value of $5,000 or more.
Real PropertyImmovable property; land, together with all the property on it that cannot be moved, together with any attached rights; often referred to as “real estate.”
Remainder InterestIn a trust, the portion of the principal left after the income interest has been paid to the beneficiary. A charitable remainder trust makes payments to the benefactor or other individuals and then passes its remainder to charity.
Retained Life EstateThe right to use property for life (usually a residence or a farm) after contributing the remainder interest to a charitable institution.
Retirement AccountsQualified plans like IRAs and 401(k) accounts that permit individuals to accumulate savings tax-free for retirement.
Tangible Personal PropertyIncludes movable objects (e.g. china, jewelry , books, art, etc.) but does not include land, buildings, or other forms of real estate (real property—see above), or stocks, bonds, copyrights, cash, or other "intangible" personal property.
TrustA transfer of property by the grantor to the care of an individual or organization, for the benefit of the grantor or others.
Trust PropertyProperty held in trust by one person (trustee) for the benefit of another (beneficiary).
Trust TermThe length of time during which a trust is in existence (it may be for a specified number of years, or for the lifetime of one or more individuals).
TrusteeAn individual or organization carrying out the wishes of the person who established the trust, making payments to the beneficiaries and preserving the principal for ultimate distribution.
Variable IncomePayments received on a regular basis that are subject to change, not fixed.
WillA document by which a donor regulates the rights of others over his or her property or family after death.

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