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 percent of AGI; gifts of appreciated securities and appreciated property may be deducted up to 30 percent of AGI. Annual Gifts: Gifts that are made every year. Annual gifts provide ongoing support for Carroll College departments and programs.

Annual Scholarships: A scholarship which is applied in full to help fund the education of one or more Carroll students. A named, annual scholarship can be established with an annual gift of $1,000 or more.

Annuity: A contractual agreement, which pays a fixed sum of money to an individual at regular intervals. The charitable gift annuity is a gift that secures a fixed lifetime income to the donor and/or another individual.

Appraisal: An assessed value of a piece of property. Donors contributing real or tangible personal property (art, books, collectibles, etc.) to Carroll must secure an independent appraisal of the property to substantiate the value they claim as a charitable deduction.

Appreciated Property: Property such as 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 Carroll at full fair market value with no capital gains cost.

Basis: The donor's purchase price for an asset. Mrs. Smith purchases stock for $200 per share and sells it for $300. Her cost basis in the stock is $200 per share.

Beneficiary: An individual designated to receive benefits or funds from a will or other contract, or distribution from a trust.

Bequest: A transfer of personal property or assets to an individual or organization as outlined under a will.

Capital Gains Tax: A federal tax on the appreciation of an asset between the purchase price and the sale price.

Cash: Cash gifts are outright gifts of checks, drafts and money orders. If mailed before the end of the year, they will enable those who itemize to take an income tax deduction for that year. Gifts of cash are deductible for up to 50% of the donors adjusted gross income. Cash contributions in excess of the deduction limitations may be carried over and deducted in the next five tax years following the gift.

Charitable Gift Annuity: An agreement in which a donor transfers cash or other assets to a charitable organization in exchange for payments on the annuity to the donor for life, or for a term of years.

Cost Basis: The original value of an asset before its appreciation or depreciation.

Current Use: funds which support the operating budget that are available for immediate use in the current fiscal year.

Endowed Fund: The permanently held capital of a non-profit organization used to support ongoing projects and meet institutional opportunities.

Endowment: In an endowment fund, the principal is invested, and only a portion of the investment earnings is spent. The rest of the earnings are channeled back into the fund, so that the endowment grows over time.

Estate Tax: A federal tax imposed on the value of property held by an individual at the time of death, 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; this tax, as well, is paid by the estate before the distributions are made.

Fair Market Value: The price an object of property would bring on the open market.

Gift Tax: Tax on gifts generally paid by the individual making the gift, rather than the recipient.

Grantor: An individual who transfers assets into a trust, to benefit another.

Income Interest: In a trust, the right to receive income payments over a lifetime or for a term of years. 

Interest: Any right or ownership of property.

Life Income Gift: A planned gift that pays income to the benefactor and/or other beneficiaries for lifetime and then distributes the remainder to Carroll.

Living Trust: A revocable trust established by a grantor during his or her lifetime into which some or all of the grantor's property is transferred.

Living Will: A legal document stating the maker's or signer's life is not to be artificially supported in the event of a terminal illness or accident.

Matching Gift: Corporations will match gifts made by employees, officers, directors, and in some cases spouses and/or retired employees, officers or directors. More than 1,000 American companies have adopted matching gift plans to help support higher education. Contact your company's personnel or community relations department for guidelines.

Operating Budget: funds that provide the support necessary to support annual budgets and provide on-going services on a yearly basis.

Outright Gift: The value of an outright gift immediately benefits the college. Outright gifts include: cash, checks and money orders; gifts of securities, real estate, and personal property; and corporate gifts, corporate matching gifts, and gifts-in-kind.

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 "promise" to pay. A pledge to make a gift may not be deducted until the year in which the actual payment is made. Multi-year pledges allow you to spread your gift payments over a period of time.

Probate: The court process that determines the validity of a deceased individual's will.

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 benefactor or other individuals and then passes its remainder on to Carroll.

Restricted Gifts: Restricted gifts are earmarked toward one or more specific goals. Donors may target their contributions in ways that reflect their interests while also addressing important college needs.

Securities:

1. Long-term and appreciated securities are those which have been owned for more than one year, and heave increased in value. If you itemize deductions, such a gift would entitle you to a federal income tax deduction for the full fair market value of the securities on the date of the gift, up to a maximum deduction of 30% of your AGI for the year.
2. Short-term securities are those held for less than one year. If you itemize, you will be entitled to a federal income tax deduction for only the purchase price of securities. 
3. Depreciated securities are those which have declined in value since purchase. The college suggests the donor sell them, take the loss, and donate the cash proceeds. This will provide the maximum tax benefit from the gift.

Tangible Personal Property: property that can be held physically. Examples include furniture, artwork, jewelry, coin collections, etc.

Trust: A written, legal document created by a donor for the transfer of property to the care of an individual or organization for the benefit of the donor or others.

Trustee: An individual or organization entrusted with managing property placed in a trust while carrying out the wishes of the individual who established the trust, paying income to the beneficiaries and preserving the principal for ultimate distribution.

Unrestricted Gift: An unrestricted gift is the most flexible kind of gift because it allows the college to apply financial resources where they are needed most.

Will: A legally executed document that dictates how and to whom an individual's property is to be distributed upon their death.