University of Michigan

Glossary

Annual Giving – A program which solicits gifts on an annual basis through telemarketing, e-solicitations, direct mail and/or personal appeals.  Gifts are typically made for U-M’s unrestricted needs, but the donor may choose to direct the funds for a specific purpose(s).
      
Bequest – The act of naming an individual or organization, such as U-M, as a beneficiary through a will or trust.  The assets are not transferred until after the death of the donor.
 
Charitable Gift Annuity (CGA) – In exchange for an irrevocable gift of cash, securities, or other assets, U-M agrees to pay one or two annuitants a fixed income each year for life.  After the death of the annuitant(s), the remaining funds in the annuity are used for charitable purposes as directed by the donor.   A CGA can also be deferred or flexible so that payments begin at a future date.
 
Charitable Lead Trust – A trust which pays an income to U-M for a term of years for a charitable purpose(s) directed by the donor.  After the term ends, the assets remaining in the trust return to the donor or individuals named by the donor.

Charitable Remainder Annuity Trust (CRAT) – An irrevocable trust which names one or more charities as the final beneficiary.  During the life of the trust, it pays a donor and/or other individuals an income for life based on a fixed percentage (usually 5% or 6%) of the original value of the trust.  After the death of the trust beneficiaries, the assets remaining in the trust are used for charitable purposes as directed by the donor. 

Charitable Remainder Trust – A trust that pays benefits to the donor or whomever the donor designates. When the donor or other income beneficiaries die, the remaining assets go to the U-M.

Charitable Remainder Unitrust (CRUT) – An irrevocable trust which names one or more charities as the final beneficiary.  During the life of the trust, it pays a donor and/or other individuals an income for life based on a fixed percentage (usually 5% or 6%) of the annual value of the trust.  After the death of the trust beneficiaries, the assets remaining in the trust are used for charitable purposes as directed by the donor.

Deferred Gift Annuity – A Charitable Gift Annuity in which the donor chooses to wait a certain number of years before receiving an income.

Endowed Gift – A gift of which the initial amount, known as the principal, is generally not spent but instead is invested by the University in perpetuity. Each year, a portion of the returns on the principal goes to an area of the U-M that the donor designates.

Endowment Fund – A fund in which income and/or principal from permanently held University gifts are used to support ongoing projects and meet institutional opportunities.

Gift in Kind – Any non-monetary donation to the U-M such as services or book collections, artwork, equipment, or other valuable personal property.

Life Income Gift – A gift that returns an income to the donor, as in a Charitable Gift Annuity or a Charitable Remainder Trust.

Matching Gift – A Gift by an organization matching the amount of a donation to the U-M made by its employees or corporate partners.

Memorial Gift – A gift made in memory of a deceased individual.

Named Opportunities – Facilities or other physical spaces funded by donors and named in honor of them.

Outright Gift – A contribution of cash or property in which the donor retains no interest and that can be used immediately by the U-M.

Pledge – A promise to make a donation to the U-M that can be paid in a single installment or in multiple installments.

Recurring Gift – A set amount donated at specified, continuous intervals. Recurring gifts are similar to pledges paid in installments in that a donor agrees to contribute a certain amount over an extended period of time.

Restricted Gift – A Gift made for a clearly specified purpose, such as a particular scholarship or area of research.

Retained Life Estate – An arrangement in which a donor gives their home, farm or vacation property to UM while retaining the right to live in the home for a period of years or for their lifetime.  The donor receives an immediate charitable deduction for the remainder interest in the home and secures a future gift to U-M for whatever purpose they choose.

Stewardship – The component in the cycle of giving that involves thanking donors and keeping them informed of their gift status and outcome.

Tribute – A gift given in honor of a person or a specific event that the donor wishes to recognize.

Tributee – A person being honored by a Tribute.

Unrestricted Gift – An immediately expendable gift that a donor makes to the U-M without specifying what it should be used for... Such gifts help the University meet its highest priority needs, respond quickly to emerging opportunities, and invest in areas of the highest potential.

The Regents of the University of Michigan has 501(c)(3) non-profit tax exempt status; our federal tax ID number is 38-6006309.

Copyright © The Regents of the University of Michigan
Gifts to endowment will be administered as a permanent endowment under Michigan law and University policies.
The University of Michigan Office of Development, 3003 South State Street, Suite 9000, Ann Arbor, MI 48109-1288