Glossary of Charitable Giving Terms
501(c)(3): Section of the Internal Revenue Code that designates an organization as charitable, tax-exempt, and nonprofit. Organizations qualifying under the Code include religious, educational, charitable, amateur athletic, scientific, or literacy groups. Germantown Academy is a 501(c)(3) organization.
Annual Fund: The Annual Fund supports the school’s operating budget for the current fiscal year with faculty salaries, financial assistance, building maintenance, library books, lab and classroom materials, and utilities.
Annual Fund Year: The 12-month operating budget period for the organization. At Germantown Academy, the Annual Fund Year is July 1 through June 15.
Annual Report: A voluntary report published yearly to inform the community about our contributions received, activities, policies, guidelines, and to express OUR THANKS!
Appreciated Property: Property, such as real estate or stock that has increased in value.
Beneficiary: An individual designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust, or retirement plan.
Bequest: To give or leave something by will, usually personal property or assets.
Capital Campaign: An organized drive to raise substantial funds to finance major needs of an organization, including construction, renovations, or endowment.
Charitable Lead Trust: A contract to pay 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 contract to provide 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.
Codicil: A legal instrument made to modify an earlier will.
Donor: Individual or organization that makes a charitable gift to an institution.
Endowment: A bequest or gift that is intended to be kept permanently and invested in order to generate income for an organization or foundation.
Fiscal Year: The 12-month financial period for the organization; at Germantown Academy, the fiscal year is July 1 through June 30.
In-Kind Contributions: Support in the form of goods or services rather than a cash contribution.
Matching Gifts Program: A corporate contributions program that will match contributions made by employees, retirees, and their spouses to qualifying nonprofit organizations. Each corporation establishes specific guidelines regarding the type of organizations included, donor eligibility, and the dollar amount that will be matched.
Nonprofit: A term describing the Internal Revenue Service’s designation of an organization whose income is not used for the benefit or private gain of stockholders, directors, or any other persons with an interest in the company. A nonprofit organization’s income must be used solely to support its operations and stated purpose. Also called Not-for-Profit.
Online Gift: A safe and secure way to make a gift via the Germantown Academy website using your credit card. Go to www.germantownacademy.net/giveonline.
Operating Support: Contributions toward an organization’s day-to-day ongoing expenses, such as salaries, utilities, office supplies, etc.
Planned Giving: Financial, estate, and gift planning to build financial security, protect your heirs, and sustain the organizations you care for in perpetuity. Some examples of planned giving vehicles are Charitable Remainder Trusts and Charitable Gift Annuities and Bequests.
Pledge: A commitment to make a gift over a specified timeframe.
Securities: includes appreciated stocks, bonds, and mutual fund shares.
Will: A written document that indicates an individual’s wishes regarding passing on holdings to another.
For more information on any of these terms or to participate in a Planned Giving opportunity, contact the Office of Institutional Advancement at 267-405-7100.