Glossary of giving terms
Alumni Fund credit
Amount of an individual's gift that's credited to the Alumni Fund
and factored into Fund totals. Read more about the MIT
Alumni Fund.
alumni participation
The alumni participation rate is determined by calculating the percentage
of alumni donors out of a pool of active alumni.
bequest
A sum of money committed to an organization by will or trust and made
available upon the donor's death. The donor retains all assets during
his or her lifetime. Read more about bequests.
bricks and mortar
An informal term referring to buildings or construction projects.
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capital campaign
An organized drive to raise substantial funds in support of an institution's
major needs such as construction or renovations, endowment, or special
programs.
capital gains tax
A tax on capital gains, which are the difference between proceeds
from the sale of a capital asset and the original cost of that asset.
Century Fund
Alumni Fund donor recognition category for the 10 most recently graduated
classes (undergraduate and graduate). Recognizes annual gifts of $100
to $499. Read more about MIT’s donor
recognition programs.
challenge grant
A grant made on the condition that other contributions will be secured,
usually according to a particular formula and usually within a specified
period of time. The objective is to encourage expanded giving from
additional sources. Example: Fibonacci
Challenge
charitable gift annuity, deferred gift annuity
An agreement between MIT and a generous donor whereby the donor makes
a contribution in exchange for MIT's promise to pay one or two annuitants
a fixed income for life. Funds remaining after the death of the last
annuitant will be used by MIT for purposes specified by the donor at
the time of the gift. The minimum gift to fund a charitable gift annuity
is $10,000. Read more about charitable
gift annuities and deferred
gift annuities.
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charitable remainder trust (CRT)
A legal device allowing the transfer of assets into a separately managed
trust that will provide the donor and/or the donor's beneficiaries
with payments for life or for a specific term of years. After the donor's
death, the remaining assets (the "charitable remainder") pass to MIT.
Read more about charitable
remainder trusts.
charitable remainder unitrust (CRUT)
A popular type of charitable remainder trust that pays a percentage
of the fair market value of the trust, valued annually, to a maximum
of two beneficiaries age 55 or older. The minimum gift to a unitrust
is $100,000. Read more about charitable
remainder unitrusts.
crediting period
The range of time in which gifts are counted for a fundraising campaign
or effort. The annual crediting period for the MIT Alumni Fund is July
1 to June 30 (also known as the fiscal year). Reunion gift crediting
periods vary for different reunion gift campaigns. Read more about gift
and pledge crediting.
cross credit
An association of a gift to an individual who is not the primary donor
of that gift. Gifts can be assigned "cross credit" if the individual's
relationship to the gift is made known to MIT. Cross credits are used
for donor stewardship, cultivation, and recognition. The gift is only
counted once toward the Alumni Fund totals.
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designated fund
One of the 30,000+ funds to which donors can allocate their gifts
to MIT.
discretionary funds
Funds that are distributed at the discretion of the fund administrator(s).
donor recognition categories
Levels determined by the Alumni Fund Board to recognize significant annual giving. Membership in donor recognition categories is determined by household giving totals and includes corporate matching gifts. The official report of membership is published annually in the Alumni Association Annual Report. Read more about recognition and thanks.
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Emma Rogers Society
Society for widows and widowers of MIT alumni and faculty.
endowed fund
A permanent fund whose principal remains intact and is invested. The
income generated is either reinvested into the fund or is used to support
programs or activities.
endowment
The principal amount of gifts and bequests that are stipulated to
be kept intact and invested to create a source of income for an organization.
expendable fund
A fund from which dollars are used on an as needed/annual basis without
preserving a minimum dollar level. Both principal and income may be
spent.
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Fibonacci Challenge
A challenge issued to each year's senior class to support their Senior
Gift. Seniors are asked make a five-year pledge following the Fibonacci
sequence ($10, $10, $20, $30, $50). Each year, a challenger matches
the gifts of each Fibonacci participant over the five years of the
pledge. The amount of the match is determined based on the annual class
participation rate: at 10 percent participation, the challenger gives
$10 per donor, at 20 percent participation, $20 per donor, and so forth.
fiscal year
MIT's fiscal year runs from July 1 to June 30. The Alumni Fund runs
on the same fiscal year as the Institute, and this is also considered
the Alumni Fund crediting period.
Friends of MIT
Includes non-alumni parents, widows, MIT staff and faculty, and unaffiliated
individuals.
FSILG
Fraternities, Sororities, and Independent Living Groups. Read more
about FSILGs.
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gifts in honor
Like memorial gifts, gifts in honor accomplish two significant goals
at once: They honor someone whom the donor loves or admires, and they
further the Institute's service to society. Gifts in honor, like memorial
gifts, may be designated toward a specific MIT program or fund, or
their use may be left to the discretion of the Institute. Read more
about memorial
gifts.
Great Dome
Alumni Fund donor recognition society. It is divided into two levels:
- Fellows: annual donors of $1,000 to $1,999
- Associates: annual donors of $500 to $999
Read more about MIT's
donor recognition programs.
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in-kind contribution
Non-cash gift of services or of tangible property—equipment,
works of art, books, etc.—rather than of cash or appreciated
property. In-kind contributions (also referred to as "gifts in kind")
must be appraised or evaluated before they are accepted by the Institute.
IRDF
Independent Residence Development Fund. The IRDF is a special endowment
fund that offers targeted grants and low-interest loans to help FSILGs
(Fraternities, Sororities, and Independent Living Groups) maintain
and improve their properties. Read more about IRDF
and FSILGs.
KDMS
Katharine Dexter McCormick 1904 Society. The Society honors alumni
and friends who have made life income gifts to MIT, or who have notified
MIT of a bequest provision in their will.
Killian Society
Alumni Fund donor recognition society. It is divided into two levels:
- Patrons: annual donors of $10,000 or more
- Members: annual donors of $5,000 to $9,999
Read more about MIT’s
donor recognition programs.
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life income fund
A form of planned gift that is set up, invested, and managed by MIT, where up to two beneficiaries receive payments for life or for a pre-specified term of years. Read
more about gift planning.
matching gift
A grant program whereby a company will contribute a specific amount
of money to MIT based on the amount of a gift made by an employee (and
sometimes by the employee's spouse or a retiree) to the Institute.
Specific guidelines are set by each employer. Matching gifts are included
in the Alumni Fund dollar total, and are added to an individual's gift
total for purposes of donor recognition. Read more about matching
gifts.
memorial gift
A gift to commemorate a family member, classmate, faculty member,
or friend. Read more about memorial
gifts.
need-blind admissions policy
MIT policy that directs the Institute's leaders to admit students
based solely on their academic potential rather than on an their ability
to pay full tuition, room, and board.
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operating support
Contributions made to cover an organization's day-to-day, ongoing
expenses (e.g., salaries, utilities, office supplies).
planned gift
A form of charitable contribution whereby the donor retains assets
for life (in the case of bequests), or the donor and/or the donor's
beneficiaries are given payments for life or for a specified term of
years (in the case of life income funds), after which all remaining
funds are transferred to MIT. Read more about gift planning.
pledge
A commitment by an individual or corporation to make a future contribution.
Some donors, especially when preparing to celebrate a major reunion, make multi-year pledges. Pledges are not included in Alumni
Fund totals, but are included in some Reunion Gift campaigns.
President’s Fund
Alumni Fund donor recognition society. Recognizes annual donors of
$2,000 to $4,999. Read more about MIT's
donor recognition programs.
restricted fund
Contribution made for a clearly specified purpose and none other.
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seed money
A grant or contribution used to start a new project or program.
Senior Gift
The fundraising campaign launched by each year's senior class to raise
funds for MIT. Often features a class project that reflects the interests
of the class. Read more about the Senior
Gift.
unrestricted gift
A gift whereby the donor authorizes the Institute to decide how the
money will be used. Read more about why unrestricted
gifts are so important to MIT
yield
The rate of return on an investment.
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