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Giving to Make a Difference |
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The BLACKNJ Giving Glossary is a resource that enables you to define philanthropic
terms you may find in a Featured Organization's detail page. Browse through
or click alpha links to jump to a term:
501(c)(3)
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.)
509(a)
Section of the tax code that defines public charities (as opposed to private
foundations). A 501(c)(3) organization also must have a 509(a) designation
to further define the agency as a public charity.
Affinity Group
A separate and independent coalition of grantmaking institutions or individuals
associated with such institutions that shares information or provides professional
development and networking opportunities to individual grantmakers with
a shared interest in a particular subject or funding area.
Annual Report
A voluntary report published by a foundation or corporation describing its
grant activities. It may be a simple, typed document listing the year's
grants or an elaborately detailed publication. A growing number of foundations
and corporations use an annual report as an effective means of informing
the community about their contributions activities, policies and guidelines.
(The annual contributions report is not to be confused with a corporation's
annual report to the stockholders.)
Bequest: A sum of money made available upon the donor's death.
Building Campaign: A drive to raise funds for construction or renovation
of buildings.
Capital Campaign: Also referred to as a Capital Development Campaign,
a capital campaign is an organized drive to collect and accumulate substantial
funds to finance major needs of an organization such as a building or major
repair project.
Challenge Grant: A grant that is made on the condition that other
monies must be secured, either on a matching basis or via some other formula,
usually within a specified period of time, with the objective of stimulating
giving from additional sources.
Charity: In its traditional legal meaning, the word "charity"
encompasses religion, education, assistance to the government, promotion
of health, relief of poverty or distress and other purposes that benefit
the community. Nonprofit organizations that are organized and operated to
further one of these purposes generally will be recognized as exempt from
federal income tax under Section 501(c)(3) of the Internal Revenue Code
(see 501(c)(3)) and will be eligible to receive tax-deductible charitable
gifts.
Demonstration Grant: A grant made to establish an innovative project
or program that will serve as a model, if successful, and may be replicated
by others.
Designated Funds: A type of restricted fund in which the fund beneficiaries
are specified by the grantors.
Discretionary Funds: Grant funds distributed at the discretion of
one or more trustees, which usually do not require prior approval by the
full board of directors. The governing board can delegate discretionary
authority to staff.
Donee: See Grantee.
Donor: See Grantor.
Endowment
The principal amount of gifts and bequests that are accepted
subject to a requirement that the principal be maintained
intact and invested to create a source of income for a
foundation. Donors may require that the principal remain
intact in perpetuity, or for a defined period of time
or until sufficient assets have been accumulated to achieve
a designated purpose.
Expenditure Responsibility
When a private foundation makes a grant to an organization
that is not classified by the IRS as tax-exempt under
Section 501(c)(3) and as a public charity according to
Section 509(a), it is required by law to ensure that the
funds are spent for charitable purposes and not for private
gain or political activities. Such grants require a pre-grant
inquiry and a detailed, written agreement. Special reports
on the status of the grant must be filed with the IRS,
and the grantees must be listed on the foundation's IRS
Form 990-PF.
Family Foundation
"Family foundation" is not a legal term, and
therefore, it has no precise definition. Yet, approximately
two-thirds of the estimated 44,000 private foundations
in this country are believed to be family managed. The
Council on Foundations defines a family foundation as
a foundation whose funds are derived from members of a
single family. At least one family member must continue
to serve as an officer or board member of the foundation,
and as the donor, they or their relatives play a significant
role in governing and/or managing the foundation throughout
its life.
Financial Report
An accounting statement detailing financial data, including
income from all sources, expenses, assets and liabilities.
A financial report may also be an itemized accounting
that shows how grant funds were used by a donee organization.
Most foundations require a financial report from grantees.
Form 990/Form 990-PF
The IRS forms filed annually by public charities and private
foundations respectively. The letters PF stand for private
foundation. The IRS uses this form to assess compliance
with the Internal Revenue Code. Both forms list organization
assets, receipts, expenditures and compensation of officers.
Form 990-PF includes a list of grants made during the
year by private foundations.
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| DISCLAIMER:
BLACKNJ, Inc., BLACKNJ Giving Back, Inc. and its agents do not endorse either the organizations or the volunteer opportunities identified on this web site; nor make any warranty regarding the contents of the organizations or the philanthropic opportunities, and will not be liable for any loss, damages, or injury to persons or property in any manner arising out of or incident to the use of the website, including any consequential damages. All logos and images used to visually depict listed organization are the property of the respective organization. |
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| © 2005 BLACKNJ, Inc. All Rights Reserved |
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