Actuarial

Adjusted Gross Income ("AGI")

The sum of an individual's taxable income for the year, which is the total at the bottom of the first page of the 1040 form. Individuals may deduct charitable cash contributions up to 50% of AGI; they may deduct gifts of appreciated securities and appreciated property up to 30% of AGI.

Annual Fund

A specific set of appeals contacting alumni and friends of the Institute annually to solicit funds in support of the Wentworth, primarily accomplished through direct mail and the Phonathon.

Annuity

A contractual arrangement to pay a sum of money to an individual at regular intervals. The Charitable Gift Annuity is a gift to Wentworth that secures a fixed lifetime income to the donor and/or up to two people of the donor's choice.

See also: Charitable Gift Annuity and Charitable Remainder Trust

Appraisal

An assessment of the value of a piece of personal property. Donors who wish to contribute tangible personal property (tools, art, equipment, etc.) must secure an independent appraisal of the property to substantiate the value they claim as a charitable deduction.

Appreciated Property

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 Wentworth at full fair market value with no capital gains cost.

Basis

The donor's purchase price for an asset. (For example, if Steven Smith bought stock for $100 per share and sold it for $175, his cost basis in the stock is $100 per share.)

Beneficiary

The recipient of a bequest from a will or a distribution from a trust.

Beneficiary Designation

A simple way to leave assets to individuals, trusts, or charities without having to go through probate. This is often used for life insurance and retirement assets, but also can be used for bank or investment accounts.

Bequest

A transfer of property to an individual or organization under a will.

Capital Gains Tax

A federal tax on the appreciation in an asset between its purchase price and sale price.

Cash

A gift made in currency, by check, or by credit card.

Charitable Gift Annuity

A contract or agreement by which one receives fixed payments on an investment either for a lifetime, or for a specified number of years.

Charitable Lead Trust

A Charitable Lead Trust pays an annual income to the charity for the donor's lifetime (or for a specified term of years), after which the Trust's assets return to the donor (or the beneficiaries of the donor's choice).

Charitable Remainder Trust

A Charitable Remainder Trust provides an income to the donor (or beneficiaries of the donor's choice) either for life or for a specified term of years, after which the remainder of the Trust passes to the charity.

Contingent Bequest

A designation in a will that is made only if specified conditions are met; often when a named beneficiary predeceases the testator.

Corporator

The corporators of Wentworth Institute of Technology are an advisory board for guiding, advising, and advancing the Institute. The corporators act as a resource for the President, Provost, and department chairs to address Wentworth's future needs. Each member, selected for their commitment, expertise, and diversity of backgrounds, provides new insights and ideas to Wentworth's leadership.

Deferred Giving

A gift where the assets are distributed at a future time, often at the death of the donor.

Endowed Chair

A permanent chair may be established when $1 million has been placed in an endowment that provides in perpetuity the annual funds needed for support. The level required for creating an endowed chair is set by the Board of Trustees.

Endowed Professorship

A permanent professorship may be established when $500,000 has been placed in an endowment that provides in perpetuity the annual funds needed for support. The level required for creating an endowed professorship is set by the Board of Trustees.

Endowment Fund

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

Estate Tax

A federal tax on the value of the property held by an individual at his death (which is paid by the estate, not the recipients of the bequests).

On the other hand, the state inheritance tax is applied to the value of bequests that pass to beneficiaries; it is also paid by the estate before the distributions are made.

Executor

The person named in a will to administer the estate.

Fair Market Value

The price that an object of property would bring on the open market.

Fiscal year

The 12-month financial period for the organization; at Wentworth, the fiscal year is July 1 through June 30.

Form 990

An Internal Revenue Service form which must be submitted annually by organizations exempt from federal taxes.

Gift-in-Kind

A non-cash gift, such as equipment or artwork.

Income Interest

In a trust, the right to receive income payments either for lifetime or for a specified term of years.

Investment Advisors

Professionals who provide investment advice.

Legacy

How the world has changed because of you. This includes the long-term memory you leave behind, such as your stories, favorite sayings, lifestyle, and generosity.

Life Income Gift

A planned gift that pays income to the donor and/or other beneficiaries for lifetime, then distributes the remainder to the Institute.

Living Trust

A trust, which can be either revocable or irrevocable, which is created for the trustor and administered by another party while the trustor is still alive.

A living trust avoids probate and therefore distributes assets more quickly than a will does. It also offers a higher level of confidentiality, as probate proceedings are a matter of public record.

Matching Gift

A gift made by a business in direct proportion to a gift made by an employee.

Personal Property

Tools, equipment, artwork, business interests and other items of property. (As opposed to real estate, which in planned giving refers to land and the structures built on it.)

Pledge

A commitment to make a gift over a specified timeframe.

Private Support

Gifts from alumni, friends of the Institute, foundations, and corporations.

Probate

The process of legally establishing the validity of a will before a judicial authority; judicial certification of the validity of a will; an authenticated copy of a will so certified.

Professional Advisor

An individual who, for a fee, provides advice to an individual or organization. For planned giving, a professional advisor is generally an attorney, CPA, trust officer, financial planner, or life underwriter.

Regional Development Officer

Representatives of Wentworth who travel to cities across the nation to meet with alumni and friends who have an interest in making major gifts to support a particular program or special project.

Remainder

In a trust, the portion of the principal left after the income interest has been paid to the beneficiaries.

Remainder Trust

See Charitable Remainder Trust

Scholarship

A grant of financial aid awarded to a student for the purpose of attending a college.

Securities

Includes appreciated stocks, bonds, and mutual fund shares.

Testamentary

Describing the act of providing for the disposition of a person's property after death by written document such as a will.

Testator

The individual making a will.

Trust

A transfer of property by the grantor to the care of an individual or organization, for the benefit of the grantor or other beneficiaries of the grantor's choice.

Trustee

An individual or organization who carries out the wishes of the person who established the trust, pays income to the beneficiaries, and preserves the principal for ultimate distribution.

Will

A written document that indicates an individual's wishes regarding how to pass on holdings to the individual's heirs.