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Glossary of Fundraising Terminology

 
A-C D-F G-I J-L M-O P-R S-U V-X Y-Z

Annual Giving

A broad term for programs that reach out to the greatest numbers of alumni/ae and friends and provide the broadest opportunities and encouragement for the College's constituencies to make a gift each year.

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Beneficiary

An individual or organization that receives an interest in property or funds from an estate, a trust, or a contract such as a life insurance policy or employee benefit plan.

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Bequest

A transfer of property such as cash, securities (stocks), and tangible property through a will.

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Campaign

The Vision 2020 Major Gifts Campaign is a comprehensive initiative with a goal of raising $20 million by December 31, 2020 for Southern West Virginia Community and Technical College.

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Capital Campaign

A campaign to raise funds to finance major projects and/or programs such as the acquisition of property or equipment, construction and/or renovation of facilities.

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Capital Gain (or Capital Loss)

The difference (gain or loss) between the basis in a capital asset and the value that is realized from its sale or disposition.

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Charitable Lead Trust

A donor creates and funds an irrevocable trust that provides for payments to the Southern Foundation for the benefit of Southern West Virginia Community and Technical College for a specific period of time. At the end of that period, the trust assets go to beneficiaries designated by the original donor.

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Charitable Remainder Trust

A donor creates and funds an irrevocable trust that provides income to beneficiaries for life or a term of years, after which time the remainder of the trust is distributed to the Foundation for the benefit ofSouthern West Virginia Community and Technical College.

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Codicil

An amendment to a Will, made in a separate instrument and with the same formalities as the Will itself.

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Deferred Gift

A gift that is committed to a charitable organization but is not available for use until some future time, usually the death of the donor.

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Donor

An alumnus or friend who has made a gift to the Southern West Virginia Community College Foundation in either the current fiscal year or in the immediate past fiscal year.

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Donor Recognition

The practice of providing recognition to donors for their gifts. Examples include the acknowledgment by card or letter at the time a gift is received, personal or public expressions of appreciation directly to donors, and published lists of contributors.

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Endowment

Money from bequests or outright gifts to the College that is invested in perpetuity to produce amounts to be distributed for pre-determined purposes according to the endowment distribution policy.Funds deposited in an endowment are not expendable; they are invested for the purpose of retaining and increasing the principal of the endowment. Distribution of earnings from the endowment coincides either with the donor's wishes or, if there is no restriction on spending the earnings, at the discretion of the Vision 2020 Major Gifts Campaign leaders.

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Endowment Distribution Policy

The Foundation's policy determining the percentage of income and net appreciation to be distributed from the endowment for operations and other approved purposes each fiscal year.

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Expendable Funds

Funds that can be spent in their entirety in a manner consistent with the intentions of the donor; funds not deposited in an endowment fund.

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Estate

The assets of a deceased person, all or part of which may be gifted to the Southern West Virginia Community College Foundation to benefit the institution's programs.

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Executor

The person or institution nominated in a will to carry out the terms of the will.

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Fair Market Value

The current value of an asset if sold on the open market. Federal tax laws directly address the manner of determining and reporting fair market value.

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501(c)(3)

The section of the Internal Revenue Code that defines nonprofit, charitable (as broadly defined), tax-exempt organizations; 501(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations.

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Form 990/Form 990-PF

The IRS forms filed annually by public charities and private foundations respectively. The letters PF stand for private foundation. The IRS uses this form to assess compliance with the Internal Revenue Code. Both forms list organization assets, receipts, expenditures and compensation of officers and grants. Form 990-PF includes a list of grants made during the year by private foundations. These forms are available for public inspection.

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Gift

 A voluntary, irrevocable, unconditional transfer of an asset.

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 Gift Agreement

A contract between the Southern West Virginia Community College Foundation and a donor that specifies the terms of a donor's gift.

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Gift-In-Kind

Non-monetary items of tangible personal property such as art, collectibles, books, equipment, and other physical assets or materials which have value to the College.

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Gift Planning

The integration of personal, financial, and estate planning concepts with the individual donor's plans for lifetime or testamentary giving.Contact Ronald Lemon, Vice President for Development, at (304) 896-7425 or Ronald.Lemon@southernwv.edu

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Grant

Generally an allocation from a foundation, corporation, or government agency.

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Honorarium Gift

A gift to the Foundation given in honor of a living individual, as designated by the donor.

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Irrevocable Trust

A trust that cannot be changed or terminated by the person creating it.

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Lapsed Donor

An alumnus/a or friend who had made a gift to the Southern West Virginia Community College Foundation during a previous fiscal year but not in the current or immediate past fiscal year.

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Letter of Intent

A letter of intent states a prospective donor's intention to make a gift. The letter may also contain the prospective donor's wishes as to the specific type, size, and purpose of the gift. Usually, such a letter is not legally binding but does assist the donor and institution in planning.

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Living Trust

A trust created for the trustor and administered by another party while the trustor is still alive. A living trust, which can be either revocable or irrevocable, avoids probate, and therefore, allows assets to be distributed significantly more quickly than by a will.

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Major Gift

A significant donation to the Southern West Virginia Community College Foundation, Inc. The amount required to qualify as a major gift is determined by the Foundation.

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Matching Gift

Gifts made with company or corporate foundation funds that match gifts made by a company's eligible employees to the Southern West Virginia Community College Foundation according to the company's guidelines.

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Memorial Gift

A gift to the Foundation commemorating someone who has died, as designated by the donor. Upon request, the College will notify the appropriate family members of memorial gifts.

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Non Donor

An alumnus or friend who has never made a gift to the Southern West Virginia Community College Foundation, Inc.

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Nonprofit Organization

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.

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Outright Gift

A current gift of cash, securities and/or real estate to the Southern West Virginia Community College Foundation.

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Planned Giving

An effort to identify and cultivate a person for the purpose of generating a major gift that is structured and that integrates sound personal, financial, and estate-planning concepts with the prospect's plans for lifetime or testamentary giving. A planned gift has tax implications and often is transmitted through a legal instrument, such as a will or trust.

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Pledge

A signed and dated commitment to make a gift over a specified period, payable according to terms set by the donor, usually not exceeding five years, with scheduled monthly, semi-monthly, quarterly, semi-annual, or annual payments.

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Pledge Period

The time span during which pledges may be paid, usually not exceeding five years.

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Probate

The legal process of proving a will or having it declared valid and effective. The term is also used loosely to refer to the entire process of probate, administration and distribution of the testator's estate under the terms of the will.

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Proposal

A written request or application for a gift or grant that includes why the project or program is needed, who will carry it out, and how much it will cost.

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Prospect

An alumnus or friend of Southern West Virginia Community and Technical College with the potential to make a charitable gift.

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Restricted Funds

Assets or income that is restricted in its use, in the types of organizations that may receive grants from it or in the procedures used to make grants from such funds.

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Restricted Gift

A gift to Southern West Virginia Community and Technical College with a specified purpose clearly stated by the donor such as a named scholarship or a specific program.

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Stewardship

A process of recognition that continues to convey Southern's appreciation to donors for their thoughtful commitments.

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Tax-Exempt Organizations

Organizations that do not have to pay state and/or federal income taxes. Organizations other than churches seeking recognition of their status as exempt under Section 501(c)(3) of the Internal Revenue Code must apply to the Internal Revenue Service. Charities may also be exempt from state income, sales and local property tax.

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The Southern West Virginia Community College Foundation, Inc.

The principal purpose of the Foundation, which is a separate 501(c)(3), is to foster educational activities of Southern West Virginia Community and Technical College. The Foundation may solicit and receive contributions of money and such gifts and loans of personality and realty as the Southern West Virginia Community College Foundation Executive Board may deem desirable.

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Unrestricted Funds

Normally found at community foundations, an unrestricted fund is one that is not specifically designated to particular uses by the donor or for which restrictions have expired or been removed.

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Unrestricted Gift

A gift to Southern West Virginia Community and Technical College that is given without any restrictions on its use.

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Will

Normally a legally executed written instrument by which a person distributes his or her property to beneficiaries after his or her death.

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