Giving

Planned Giving

Glossary

Annuity — A series of fixed payments guaranteed by contract for the life or lives of the beneficiaries, or for a fixed number of years.

Bequest — A gift of personal assets made to another by means of a will.

Capital Gains — The excess of money received from the sale of property over the original amount paid for the property.

Charitable Gift Annuity — A contract under which a donor agrees to transfer property to a charity in exchange for its agreement to pay the donor a set amount annually for life. The value of the gift to the charity is presumed to be more than the annual payments thereby providing the donor with an immediate charitable tax deduction and a portion of the annual payment qualifying as non-taxable income.

Charitable Lead Trust — A trust created where the current income goes to the charity for a certain length of time and the residual is designated to the donor’s non-charitable choice of beneficiaries.

Charitable Remainder Annuity Trust — A Charitable Remainder Trust (see below) in which a sum certain, not less than 5% of the original value of the trust, is paid annually to the beneficiary or beneficiaries.

Charitable Remainder Trust— A trust written to designate income to one or more beneficiaries of the donor’s choice for life or a period of years and with an irrevocable remainder interest paid to a charity.

Charitable Remainder Unitrust — A Charitable Remainder Trust (see above) in which the income to the beneficiary or beneficiaries is a fixed percentage of the annual value of the trust’s assets.

Codicil — An addition to a will to change or clarify the terms of the original.

Deferred Gift Annuity — A Charitable Gift Annuity where the income stream to the donor or designee begins at a later date increasing the guaranteed annual payments due to shorter life expectancy calculations and temporary investment of the original gift.

Life Expectancy — An estimated calculation of the number of years a person will live from any particular age.

Pooled Income Fund — A life income plan like a Charitable Remainder Trust only the gift is transferred to a pool of funds rather than an individual trust. The remainder at the beneficiary’s death goes to a designated qualified charity.

Residual Clause — A clause in a will that bequeaths remaining property not already disposed of earlier in the will.

Revocable — As in a trust, an agreement that can be changed at a later date. Revocable gifts do not qualify for an immediate charitable deduction, although may provide an estate tax reduction.

Secondary Beneficiary — The person named to receive benefits from insurance or life income plans if the original (primary) beneficiary predeceases him.

Testamentary Trust — A trust created by a provision of a person’s will.

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