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Penn Medicine Office of Planned Giving

Glossary

A - D | E - F | G - P | R - T

Actuarial
As used in planned giving, refers to the factors used to calculate the value of lifetime payments to individuals or organizations.

Appreciated Property
Securities, real estate or any other property that has risen in value since the donor acquired it. Generally, appreciated property held by the donor for a year or more may be donated at full fair market value with no capital gains tax.

Annuity
A contractual arrangement to pay a fixed sum of money to an individual at regular intervals. The charitable gift annuity is a gift to Penn Medicine that secures fixed lifetime payments to the donor and/or another individual.

Adjusted Gross Income (AGI)
An individual’s total income for the year, less certain deductions. Individuals may deduct charitable cash contributions up to 50% of AGI; they may deduct gifts of appreciated property up to 30% of AGI.

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

Basis
The donor’s purchase price for an asset, possibly adjusted to reflect subsequent costs or depreciation. If you bought stock for $100 per share and sold it for $175, your cost basis in the stock would be $100 per share.

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

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

Capital Gains Tax
A federal tax on the appreciation in an asset between its purchase and sale prices.

Cost Basis
See Basis.

Endowment Fund
The permanently held capital of a nonprofit; distributions from which are 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 or her death (paid by the individual’s estate, not the heirs or recipients of bequests).

Executor
The person named in a will to administer the estate (known in some states as the “personal representative”).

Fair Market Value
The price that an asset would bring on the open market.

Grantor
The individual transferring property into a trust.

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

K-1 (also 1099-R)
The I.R.S. forms that Penn Medicine sends its life-income gift participants detailing how the payments they received during the year from their gifts will be taxed.

Life-Income Gift
A planned gift that makes payments to the donor and/or other beneficiaries for life or a term of years, then distributes the remainder to charity.

Personal Property
Securities, artwork, business interests and items of tangible property as opposed to “real property” (i.e., land and the structures built on it).

Personal Representative
See Executor.

Remainder Interest
In a trust, the portion of the principal left after the income interest has been paid to the beneficiary(ies). A charitable remainder trust makes payments to the donor or other individuals and then passes its remainder to charity.

Remainderman
A legal term for the individual or organization who receives the trust principal after the income interest has been satisfied.

Testator
An individual making a will.

Trust
A transfer of property by a grantor to the care of an individual or organization for the benefit of the grantor or others.

Trustee
An individual or organization carrying out the wishes of the grantor, making payments to current beneficiaries and preserving the principal for ultimate distribution.

For More Information

E-mail or call us at 215-898-9486, or complete the Request Information form. We will happily assist you through every step of the process.

Penn Medicine
Christine S. Ewan, J.D.
Senior Director, Planned Giving
3535 Market Street, Suite 750
Philadelphia, PA 19104-3309
215-898-9486 | Fax: 215-573-2186
E-mail: cewan@upenn.edu

 

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