Here are some basic terms in the world of philanthropy that are useful to know:
- the action of endowing something or someone.
- an income or form of property given or bequeathed to someone.
- a quality or ability possessed or inherited by someone.
- the amount of money or property left to someone in a will.
- Charitable gift giving
- a gift made by an individual or organization to a nonprofit organization, charity or private foundation. Charitable donations are commonly in the form of cash, but can also take the form of real estate, motor vehicles, appreciated securities, clothing and other assets or services.
- Charitable remainder trust
- a tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period of time and the donating the remainder of the trust to the designated charity.
- Charitable gift life insurance
- a method of contributing to charity by taking out life insurance on yourself with the charity as a beneficiary. Using charitable gift life insurance may allow donors to amplify their giving power. Rather than giving large cash gifts as part of a will, some donors find it easier to simply pay the life insurance premiums.