Annuitant
An individual or entity entitled to receive an annuity.

Annuity
An investment from which one receives a fixed amount of income for a lifetime or a fixed period of time. (See Charitable Gift Annuity.)

Bequest
A sum of money or property available to the designated recipient upon the donor's death.

Beneficiary
An individual or entity named to receive some assets. Many different entities have beneficiaries, including trusts, retirement plans, annuities and trust savings accounts.

C Corporation
A corporation that is taxable on its income, even though some of that income is distributed (and taxed a second time) to the shareholders.

Capital Gains Tax
The tax due as a result of selling an asset that has appreciated in value, creating a capital gain. Short-term capital gains are those that are held for less than one year. Long-term capital gains are gains that have resulted from an asset held for more than one year. When donating assets, look first to long-term capital gains assets – they're deductible at their fair market value.

Charity or Charitable Organization
An organization that operates exclusively for the benefit of the community by supporting causes such as religion, education, assistance to the government, promotion of health, relief of poverty or distress or other charitable purposes. Generally exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, and eligible to receive tax-deductible charitable gifts.

Charitable Gift Annuity
An annuity set up by a donor that pays out a certain amount to the donor over a lifetime, with the remainder going to charity upon the donor's death. These can be set up to be immediate, meaning the payments start right away, or deferred, whereby the annuity is set up ahead of time but the payments start later (usually when the donor reaches a certain age).

Charitable Lead Trust
A trust that provides for the payment of an amount annually, or at more frequent intervals, to a designated charity. The amount must equal at least 5 percent of the initial fair market value of the trust. At the death of the trust creator, or at the end of the designated term of years, the remaining trust principal is distributed to a designated beneficiary or beneficiaries.

Charitable Lead Annuity Trust (CLAT)
A charitable lead trust that provides a series of guaranteed fix payments each year of the trust period. The amount of the payments does not change over the period.

Charitable Lead UniTrust (CLUT)
A charitable lead trust that provides a series of payments that are revalued each year. These payments equal a fixed percentage of the fair market value of the trust property, as revalued annually.

Charitable Remainder Trust
A trust that pays current income to one or more non-charitable beneficiaries and later pays the remainder to charity. Special IRS rules apply to these trusts.

Charitable Remainder Annuity Trust (CRAT)
A charitable remainder trust that pays a fixed amount annually to a non-charitable beneficiary, with the remainder going to charity. The donor cannot make additional contributions to this type of trust.

Charitable Remainder UniTrust (CRUT)
A charitable remainder trust that provides a payment that is revalued each year (based on the payout percentage multiplied by the value of the trust). The donor may make additional contributions to the trust.

Community Foundation
A tax-exempt, nonprofit, publicly supported institution whose funds are established by many separate donors for the long-term benefit of non-profit organizations within a defined area. Typically, a community foundation serves an area no larger than a state.

Corporate Foundation
A company-sponsored foundation that derives grantmaking funds primarily from the contributions of a for-profit business. The company-sponsored foundation often maintains close ties with the donor company, but it is a separate, legally recognized organization, sometimes with its own endowment. A corporate foundation is subject to the same rules and regulations as other private foundations.

Corporate Giving Program
A grantmaking program established and administered within a profit-making company. Gifts or grants from the corporation go directly to charitable organizations. Expenses are planned as part of the company's annual budgeting process and the program is usually funded with pretax income.

Donor Advised Fund
A vehicle by which individuals or organizations make an irrevocable, tax-deductible contribution to an organization, then recommend to that organization how the gift should be distributed. The gift from the donor is invested, creating an opportunity for the gift to grow.

Endowment
The principal amount of a gift or bequest accepted by an organization or foundation. The principal is intended to be maintained intact and invested to create a source of income for an organization or foundation. As a donor, you may recommend that the principal remain intact forever, for a defined period of time or until sufficient assets have accumulated to achieve a designated purpose.

Form 990/Form 990-PF
IRS forms filed annually by public charities and private foundations, respectively. (The letters PF stand for 'private foundation.') The IRS uses these forms to assess compliance with the Internal Revenue Code. Both forms list organization assets, receipts, expenditures and compensation of officers. Both include a list of grants made during the year, which is available to the public. Private foundations are required to disclose their donors and the amounts they contribute each year. Public foundations do not disclose this information.

Form 8283
The IRS form for non-cash charitable contributions, filed by the taxpayer under certain circumstances. We can provide this form for those required to attach it to their tax returns.

Grant
An award of funds to an organization for charitable activities.

Irrevocable Contribution
A gift that is nonrefundable. Contributions to NTBI are irrevocable, meaning that the gift and all related future earnings are no longer the possession of the donor. Your gift becomes the property of NTBI, and you cannot impose any restrictions or conditions that prevent NTBI from furthering its charitable mission. This is done to ensure your full tax deduction at the time your gift is made.

Net Proceeds
The amount received from the sale of assets or securities after deducting all costs incurred in the transaction.

Non-exempt Organizations
Organizations that are not exempt from paying taxes.

Private Foundation
A non-governmental, nonprofit organization, usually funded by a single source (such as an individual, family, or corporation), with a program managed by its own trustees or directors. A private foundation is established to maintain or aid social, educational, religious or other charitable activities, primarily through making grants. Private foundations are exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. However, private foundations are subject to federal excise taxes on their net investment income, as well as self-dealing rules and penalties, lower limitations on income tax deductions and other burdens not found through use of public foundations.

Public Charity
A nonprofit organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that receives its financial support from the public. Religious, most educational and many medical institutions are public charities. Other organizations exempt under Section 501(c)(3) must pass a public support test to be considered public charities, or they must be formed to support an organization that is a public charity. New Tribes Mission, NTBI's parent organization,I is a public charity.

S Corporation
A corporation whose income is not taxable. Income from S corporations is taxed to their shareholders, similar to partnerships. Corporations and their shareholders make the decision whether to be S corporations or C corporations, depending on which they believe will have the best tax advantages. NTBI accepts stock from these types of corporations.

Section 501(c)(3)
Section of the Internal Revenue Code that designates organizations as charitable and tax-exempt. New Tribes Mission, NTBI's parent organization, is tax-exempt under Section 501(c)(3) and is classified as a public charity under Section 509(a)(1).

Section 509(a)(1), (2), and (3)
Sections of the Internal Revenue Code that define public charities (as opposed to private foundations). A 501(c)(3) organization must have a 509(a)(1), (2), or (3) designation to be defined as a public charity.

Successor-Adviser
A person named to carry on the decision-making after the death of the last surviving adviser. This could be a relative, friend, or representative of the adviser.

Tax Deductible
A term that means allowable by law for deduction on a tax return. The Internal Revenue Service (IRS) allows individuals who itemize on their tax returns to deduct contributions to qualified charities. Because some limitations apply to what may be deducted, it is wise to seek the services of a professional advisor regarding all tax-related matters. New Tribes Mission and NTBI do not serve in the role of professional advisor for its donors.

Trust
A legal agreement that allows an individual to set aside money or property of one person for the benefit of one or more persons or organizations. The legal title of a trust remains with the trustee.

Trustee
The person(s) or institution(s) responsible for administering a trust.

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