Glossary
Below is a list of frequently used terms found on the website. If you have any questions please take a look at our FAQ.
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Section of the Internal Revenue Code that designates an organization as charitable and tax-exempt. Organizations qualifying under this section include religious, educational, charitable, amateur athletic, scientific or literary groups, organizations testing for public safety, or organizations involved in prevention of cruelty to children or animals. Most organizations seeking foundation or corporate contributions secure a Section 501 (c)(3) classification from the Internal Revenue Service (IRS).
Note: The tax code sets forth a list of sections--501 (c)(4-26)--to identify other nonprofit organizations whose function is not solely charitable (e.g., professional or veterans organizations, chambers of commerce, fraternal societies, etc.).
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Cash, stocks, bonds, real estate or other holdings.
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A portfolio in which a manager invests in both common stock and fixed-income instruments according to a predetermined target-e.g., 60 percent common stock, 40 percent foxed stock.
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One one-hundredth of a percent (0.01 percent); 2 percent is equal to 200 basis points. A term commonly used to measure returns, earnings and fees paid to investment managers.
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A sum of money made available upon the donor's death.
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A type of fund often preferred by donors with strong ties to a particular organization or institution who want to establish a designated fund for its benefit. If the beneficiary organization ceases to exist, changes its mission or loses its tax-exempt status, the Foundation redirects support to a similar organization. Click here to learn more about Designated Funds.
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A type of fund that allows donors to take an active role in grant making by recommending charitable organizations to receive grants. Other family members can also be named as advisors, thereby encouraging children to carry on family philanthropy. Click here to learn more about Donor Advised Funds.
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A type of fund that uses gifts to establish principal and make grants from the income generated by that principal. An endowed fund exists in perpetuity and continues to carry out the donor’s wishes after death.
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Investment of assets of an organization (a bequest or gift) that are nominally intended to be kept permanently and invested to create income for an organization.
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An individual, firm or committee responsible for making day-to-day decisions to buy, hold, or sell assets. Also know as money managers or investment advisors.
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Forms that must be filed annually with the IRS by public charities (including community foundations) and private foundations, respectively.
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A grant or gift made with the specification that the amount donated must be matched on a one-for-one basis or according to some other prescribed formula.
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A fund that is established to remember and honor a deceased loved one. The Foundation will help manage incoming contributions to the memorial fund as well as help guide the gift to reflect the giving wishes of the person in whose memory the fund was established.
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A contribution given to cover an organization's day-to-day, ongoing expenses, such as salaries, utilities, office supplies, etc.
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Foundations that receive monies and make distributions to donees, with little or no principal remaining with the foundation.
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The origin of the word philanthropy is Greek and means love for mankind. Philanthropy is best defined as the love of humanity. It includes voluntary service, voluntary giving, and voluntary association.
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Establishing charitable giving direction, often with tax benefits associated, in advance of one’s death.
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Test designed to ensure that a Section 170(b)(1)(A)(vi) or 509(a)(2) public charity is responsive to the general public rather than to the private interests of a limited number of persons. The organization normally must receive more than one-third of its financial support from the general public.
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A fund established by donors specifically interested in promoting education. Scholarships may support any level of education and can be directed toward students attending a particular school, studying a particular field or coming from a geographical area.
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A legal device used to set aside raised money or property of one person for the benefit of one or more persons or organizations.
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The person(s) or institutions responsible for the administration of a trust.
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Also know as the "Fund for the Future" at the Elk County Community Foundation, an unrestricted fund is not specifically designated to particular uses by the donor, and so, the board of the Community Foundation may make grants to charities and in amounts that it decides at it own discretion.