Glossary of Terms

Beneficiary

An individual or organization that receives funds from any source.  On this site, it may also be referred to as a recipient or endowment holder. 

Bequest

A gift that a donor has left in an estate plan and the funds are available to the parish or school upon the death of the donor.

Charitable Contribution

A donation of something of value to a not for profit charitable organization, usually tax deductible.

Charitable Deduction

The value of money or property transferred to a 501 (c) (3) organization is deductible for income, gift and estate tax purposes.  In most cases, the term “charitable deduction” refers to the portion of a gift that can be deducted from the donor’s income subject to federal income tax. 

Charitable Gift Annuity

A Charitable Annuity is a gift that is made to the Catholic Foundation that will provide an annual income to the donor throughout their life.  This may be for a single or for two-life donors.  Part of the original gift is tax deductible and the residual at the time of the donor(s) death is then endowed for the use of a parish or school.  Donors determine that beneficiary at the time that the gift is made.   A minimum gift of $10,000 is required to create a Charitable Gift Annuity.

Corporate Matching Gift

Many corporations offer employees a match to a gift that they have made to a charitable organization.  Donors would need to check with their employer to see if such a program exists that would increase the gift made by the donor.

Corpus

The actual gift of assets that comprise an endowment, Charitable Gift Annuity or Donor Advised Fund.  This is also known as the principal.

Deanery

A geographic grouping of parishes designed to facilitate communication. Deanery meetings enable the parish priests, pastoral life coordinators and representatives to voice the needs and concerns of the people throughout the Diocese.  The parishes in the Diocese of Evansville are grouped into seven deaneries.

Distribution

The annually payment to an endowment beneficiary of a portion of an endowment’s value for that year.  The Catholic Foundation’s Finance and Investment Committee recommends this portion to the Foundation board annually.

Diocese

A geographical area of the Church, governed by a Bishop, embracing a number of parish communities.

Donor

The individual, organization or institution that makes a gift.

Donor Advised Fund

A Donor Advised Fund is a giving opportunity to make a charitable gift and then have the opportunity to advise on the distribution of this gift overtime.  The fund may be for two lives and a portion of the Donor Advised Fund is permanently endowed.  The distributions may be made to any Catholic organization throughout the Diocese of Evansville.’

Endowment

The transfer of a gift, money or property to a not-for-profit institution set aside as a permanent gift. The income is to be used for the benefit of a specific entity and the distribution is made available once a year.

Estate Tax

An estate tax is a federal or state tax on the transfer of a deceased person’s assets to his heirs and beneficiaries.  Charitable gifts are excluded from estate tax.

Insurance

A written policy that a company guaranteeing a person or property against specific loss or harm. Insurance policies can be given as a charitable gift to a not-for-profit organization or the insured may name the charity as a beneficiary of such policy.

Life Income Trust

Assets are placed in a trust retaining the rights to the donor of the trust income.  When the trust ends, whatever remains is given to the not-for-profit organization.

Planned Giving

 Planned Giving is a method of supporting no-profits and charities that enables philanthropic individuals or donor to make larger gifts than they could make from their income.  There are a variety of methods that are considered planned giving, such as endowments, Charitable Gift Annuities, Donor Advised Funds, gifts of Insurance, etc.

Restricted Endowments

All endowments are restricted for the purpose of the orginal intent of each donor. The portion that is held in restricted is available for an annual distribution from the earnings of the endowment.

Trusts

A trust is an instrument where an individual may control the distribution of their property during their lives or after their deaths through this use.  There are many types of trusts and purposes. 

Unitrust

Type of trust in which a certain percentage of an annually assessed fair market value of trust property is paid to the beneficiary.

Unrestricted

The portion of an endowment that is available for immediate distribution as directed from the endowment advisor.  New gifts may be made to the Unrestricted portion only through a Donor Advised Fund and from the annual distribution.

Will

A legal document that determines how an individual’s assets, in the individual’s name only, will be distributed after their death.