| Glossary of Terms |
|
Term |
Definition |
|
4-H Foundation |
An officially recognized foundation at the U of M that
works in concert with the U of M Extension Service, Center
for 4-H Youth Development, and County Extension educators
to provide positive youth development experiences. |
|
Actuarial |
As used in planned giving, refers to the factors used
to calculate the value of lifetime payments to individuals
or organizations |
|
Adjusted Gross Income ("AGI") |
The sum of an individual's taxable income for the year - the
total at the bottom of the first page of the 1040. Individuals
may deduct charitable cash contributions up to 50% of AGI;
they may deduct gifts of appreciated securities and appreciated
property up to 30% of AGI. |
|
Annual Fund |
A specific set of appeals contacting alumni and donors
annually to solicit funds in support of the University
of Minnesota, primarily accomplished through direct mail
and by T.E.A.M. (Telefund for Excellence At Minnesota). |
|
Annuity |
A contractual arrangement to pay a fixed sum of money
to an individual at regular intervals. The charitable gift
annuity is a gift to us that secures a fixed lifetime income
to the donor and/or another individual.
See also: Charitable Gift Annuity and Charitable Remainder Trust |
|
Appraisal |
An assessment of the value of a piece of property. Donors
contributing real or tangible personal property (art, books,
collectibles, etc.) to us must secure an independent appraisal
of the property to substantiate the value they claim as
a charitable deduction. |
|
Appreciated Property |
Securities, artwork, real estate, or any other property
that has risen in value since the donor acquired it. Generally,
appreciated property may be donated to us at full fair
market value with no capital gains cost. |
|
Audited Financial Statements |
To examine, verify, or correct the financial accounts.
An independent accounting firm audits the U of M Foundation
annually. A copy of the most recent audited financial statements
is available online. |
|
Basis |
The donor's purchase price for an asset. Mrs. Quinn bought
stock for $100 per share and sold it for $175. Her cost
basis in the stock is $100 per share. |
|
Beneficiary |
The recipient of a bequest from a will or a distribution
from a trust. |
|
Beneficiary Designation |
A simple way to leave assets to individuals, trusts, or
charities without having to go through probate. This is
often used for life insurance and retirement assets, but
also can be used for bank or investment accounts. |
|
Bequest |
A transfer of property to an individual or organization
under a will. |
|
Builders Society |
At the U of M, the recognition society within the Presidents
Club acknowledging donors when lifetime giving is $1 million
or more. |
|
Campaign Minnesota |
A $1.3 billion campaign running from 1996 through June
2003 to provide current and future gifts in support of
the University of Minnesota. The campaign achieved its
goal in 2002, and by May 31, 2003, had reached $1.624 billion. |
|
Capital Gains Tax |
A federal tax on the appreciation in an asset between
its purchase and sale prices. |
|
Cash |
A gift made in currency or by check. |
|
Challenge Grant or Match |
Funding which will be received by the University in direct
proportion to other funds raised for the designated purpose.
Challenge grants are generally time-limited. |
|
Chancellors Society |
At the U of M, the recognition society within the Presidents
Club acknowledging donors when lifetime giving is $50,000
or more. |
|
Charitable Gift Annuity |
A contract or agreement by which one receives fixed payments
on an investment for a lifetime or for a specified number
of years. |
|
Charitable Lead Trust |
A charitable lead trust pays an annual income to the charity
for the donor's lifetime or for a term of years, with the
trust assets returning to the donor, or passing to the
donor's heirs. |
|
Charitable Remainder Trust |
A charitable remainder trust provides
an income to the donors, or other individuals, for life or
for a term of years, with the remainder of the trust passing
to charity at the death of the last income recipient. |
|
Contingent Bequest |
A designation by will that will be made only if specified
conditions are met; often when a named beneficiary predeceases
the testator. |
|
Coordinate Campus |
At the U of M, this refers to non-Twin City campuses of
the University. The coordinate campuses are Crookston,
Duluth, Morris, and Rochester. |
|
Deferred Giving |
A gift made wherein the assets will be distributed at
a future time; often the death of the donor. |
|
Endowed Chair |
A permanent chair may be established
when $2 million has been placed in an endowment that provides
in perpetuity the annual funds needed for support. The level
required for creating an endowed chair is set by the Board
of Regents. |
|
Endowed Professorship |
A permanent professorship may
be established when $1 million has been placed in an endowment
that provides in perpetuity the annual funds needed for support.
The level required for creating an endowed professorship
is set by the Board of Regents. |
|
Endowment Fund |
The permanently held capital of a non-profit used to support
ongoing projects and meet institutional opportunities. |
|
Estate Tax |
A federal tax on the value of the property held by an
individual at his death (it's paid by the estate, not the
recipients of the bequests). In contrast , state inheritance
tax is applied to the value of bequests passing to beneficiaries;
it is also paid by the estate before the distributions
are made. |
|
Executor |
The person named in a will to administer the estate. See
also Personal Representative. |
|
Extension Service |
A statewide network of University of Minnesota researchers,
educators, and volunteers focusing on issues where research-based
education can make a difference. The Extension Service
delivers practical information to people who need it when
they need it. |
|
Fair Market Value |
The price that an object of property would bring on the
open market. |
|
Fellowship |
The financial grant made to a fellow in a college or university.
A graduate student appointed to a position granting financial
aid and providing for further study.
|
|
Fiscal year |
The 12-month financial period for the organization; at
the U of M, the fiscal year is July 1 through June 30. |
|
Form 990 |
An Internal Revenue Service form which must be submitted
annually by organizations exempt from federal taxes. The
U of M Foundation's most recent form 990 can be found online. |
|
Foundation |
At the U of M, this refers to organizations recognized
by the Board of Regents to raise money for the University.
There are 4 recognized foundations: University of Minnesota
Foundation, Minnesota Medical Foundation, Minnesota Landscape
Arboretum Foundation, and the 4-H Foundation. |
|
Founders Society |
At the U of M, the recognition society within the Presidents
Club acknowledging donors when lifetime giving is $25,000
or more. |
|
Gift-in-Kind |
A non-cash gift; generally a non-monetary gift such as
artwork, books, or a collection. |
|
Heritage Society |
At the U of M, the recognition society within the Presidents
Club which acknowledges individuals who have made revocable
deferred gifts such as bequest provisions, beneficiary
designations, and most life insurance gifts. |
|
Income Interest |
In a trust, the right to receive income payments for lifetime
or a term of years. |
|
Investment Advisors |
In general, professionals who provide advice regarding
investments; at the U of M, a separate organization was
established in 1998 to provide investment advice: University
of Minnesota Foundation Investment Advisors. |
|
Legacy |
The long-term memory you leave behind-your stories, favorite
sayings, lifestyle, your generosity, how the world has
changed because you've passed through it. At the U of M, Legacy is
also a publication sent to major donors. |
|
Life Income Gift |
A planned gift that pays income to the donor and/or other
beneficiaries for lifetime, then distributes the remainder
to the University. |
|
Living Trust |
A trust created for the trustor and administered by another
party while the trustor is still alive. A living trust
can be either revocable or irrevocable. A living trust
avoids probate and therefore gets assets distributed significantly
more quickly than a will does. It also offers a higher
level of confidentiality, as probate proceedings are a
matter of public record.
|
|
Maroon & Gold Club |
At the U of M, a recognition program for individuals who
make gifts of $1,000 or more during a fiscal year. |
|
Matching Gift |
A gift made by a business in direct proportion to a gift
made by an employee. |
|
Minnesota Landscape Arboretum Foundation |
An officially recognized U of M foundation raising funds
in support of the Minnesota Landscape Arboretum. The Arboretum
is part of the department of Horticulture Science and provides
a community and national resource for horticultural and
environmental information, research, and public education. |
|
Minnesota Medical Foundation |
An officially recognized U of M foundation providing support
for research and education programs at the U of M Medical
Schools and other Academic Health Center programs. |
|
Online Gift |
A safe and secure way to make a gift via the World Wide
Web to the University of Minnesota using your credit card. |
|
Personal Property |
Securities, artwork, business interests and other items
of property - as opposed to real property, used in planned
giving to refer to land and the structures built on it. |
|
Pledge |
A commitment to make a gift over a specified timeframe. |
|
Presidents Club |
A U of M donor recognition program for individuals and
organizations who have made lifetime gifts of $25,000 or
more. |
|
Private Support |
Giving from alumni, friends of the U, foundations, and
corporations. Private support pays for about 10 percent
of the University's annual expenses. |
|
Probate |
The process of legally establishing the validity of a
will before a judicial authority; judicial certification
of the validity of a will; an authenticated copy of a will
so certified. |
|
Professional Advisor |
An individual who, for a fee, provides advice to an individual
or organization. In this context, a professional advisor
is generally an attorney, CPA, trust officer, financial
planner, or life underwriter. |
|
Regents Society |
At the U of M, the recognition society within the Presidents
Club acknowledging donors when lifetime giving is $500,000
or more. |
|
Regional Development Officer |
Representatives of the U of M who travel to cities across
the nation to meet with alumni and friends who have an
interest in making major gifts to support a particular
campus, college, program, or special project. |
|
Remainder |
In a trust, the portion of the principal left after the
income interest has been paid to the beneficiary(ies).
A charitable remainder trust pays income to the donor or
other individuals and then passes its remainder to the
University. |
|
Remainder Trust |
See Charitable Remainder Trust |
|
Scholarship |
A grant of financial aid awarded to a student, as for
the purpose of attending a college. |
|
Securities |
Includes appreciated stocks, bonds, mutual fund shares |
|
Stewardship |
At the U of M, stewardships refers to the entire donor
experience, from identification as an alumnus and/or friend,
through cultivation, solicitation, and recognition. |
|
Tangible Personal Property |
Includes artwork, coin & stamp collections, rare books & antiques. |
|
Testamentary |
Describing the act of providing for the disposition of
a person's property after death by written document such
as a will. |
|
Testator |
The individual making the will. |
|
Trust |
A transfer of property by the grantor to the care of an
individual or organization, for the benefit of the grantor
or others. |
|
Trustee |
An individual or organization carrying out the wishes
of the person who established the trust, paying income
to the beneficiaries and preserving the principal for ultimate
distribution. |
|
Trustees Society |
At the U of M, the recognition society within the Presidents
Club acknowledging donors when lifetime giving is $100,000
or more. |
|
Twin Cities Campus |
A classic Big Ten university in the heart of a major metropolitan
area with campuses in both Minneapolis and St. Paul. |
|
Unitrust |
See Charitable Remainder Unitrust |
|
University of Minnesota Foundation |
An officially recognized U of M foundation raising funds
in support of all programs at the U of M and its coordinate
campuses. |
|
Will |
A written document that indicates an individual's wishes
regarding passing on holdings to another. |
