| Bequest |
| Gifts decreed through a will and given to the named beneficiary(ies) after the will’s maker. |
| Charitable Income Tax Deduction |
| That amount of charitable gifts made during the tax year which may be deducted from an individual’s income for tax purposes. The total deduction of charitable gifts cannot exceed 50 percent of an individual’s adjusted gross income. Of this, not more than 30 percent can be in the form of capital gain property. The remaining 20 percent can be in the form of cash or other ordinary income property. |
| Charitable Income Annuity Trust |
| A trust which pays the income beneficiary(ies) a fixed dollar amount annually, no matter how much the trust earns. The amount must be specified in the trust instrument as either a dollar figure or a percentage (not less than 5 percent) of the initial value of the asset used to fund the trust. |
| Charitable Remainder Unitrust |
| A trust which provides income to beneficiaries based upon annual validation of the trust’s assets. At the time the unitrust is created, the donor specifies a fixed percentage of not less than 5 percent to be paid to income beneficiary(ies) for life or an expressed number of years up to 20 years. |
| Charitable Remainder Unitrust (Income Only) |
| A charitable remainder unitrust which pays a percentage of the income actually earned to income beneficiaries. This is a safe method of contributing real estate to an institution. |
| Concurrent Beneficiary |
| Two or more beneficiaries slated to receive income simultaneously from a trust arrangement. The donor must specify in the trust agreement the percentages of income which each concurrent income beneficiary is to receive. |
| Consecutive Income Beneficiary |
| The person next in line to receive income from a trust. |
| Contingent Request |
| Names a charitable institution beneficiary in the event of the death of all primary beneficiaries named in the will. |
| Deferred Giving |
| Any gift which is not considered an outright gift. Examples are: bequests, life income trusts, gifts of life insurance, gifts of full or partially retained life estate in a personal residence or farm. |
| Full Retained Life Estate |
| A donor retains the right to live in his or her personal residence or farm for life, or for the lifetime of more than one tenant, after which the residence or farm becomes property of a charitable institution. |
| Income Beneficiary |
| That person designated to receive a return or income, based on the type and agreement of trust (pooled income fund, annuity trust, unitrust, etc.). |
| Partial Related Life Estate |
| The same arrangement as a full retained life estate, except that the property is occupied by the donor only part of the year, and the balance of the year by the charitable institution for related activities. |
| Planned Giving |
| Either a deferred or an outright gift. The transfer of assets such that, by their very nature, will substantially affect present and future income, as well as the donor’s estate. |
| Pooled Income Fund |
| A charitable trust arrangement whereby gifts from many donors are combined and invested by the institution or trustee to produce income for donors. |
| Remainder |
| The value of assets when a trust terminates. |
| Remainderman |
| The ultimate beneficiary of a charitable trust — the institution. It is possible to have concurrent “remainder-men.” |
| Residuary Request |
| Names a charitable institution the residuary legatee, to receive the remainder of the estate after specific legacies have been provided for. |
| Short-term Trust |
| Pays income to a charitable institution for the life of the trust, after which time the principal is paid back to the donor or to others of his or her choice. |
| Specific Bequest |
| States a dollar amount or fraction of the estate to be given to a charitable institution. The gift can be in any form of property. |
| Surviving Income Beneficiary |
| A second, third, or other successive person designated to receive income from a trust after the death of the first income beneficiary. |
| Testamentary Trust |
| Declares that part or all of an estate be left in trust, with the income or some stated amount to be paid to one or more beneficiaries. Upon the death of the surviving beneficiaries, the principal will be paid to a charitable institution. |
