Glossary of giving terms
Annual Fund credit
Amount of an individual’s gift that’s credited to the Annual Fund and factored into Fund totals.
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.
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.
celebratory gifts
Such gifts serve two goals: they further the Institute’s service to society, and they celebrate personal milestones—such as birthdays, weddings, anniversaries, graduations, or retirements. Celebratory 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 celebratory gifts.
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 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 Annual 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 Annual Fund totals.
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 Annual 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.
Emma Rogers Society
Society for widows and widowers of MIT alumni and faculty. Read more about the Emma Rogers Society.
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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.
Fibonacci Challenge
A challenge issued to each year’s senior class to support their Senior Gift. Seniors are asked to 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 Annual Fund runs on the same fiscal year as the Institute, and this is also considered the Annual Fund crediting period.
Friends of MIT
Includes non-alumni parents, widows, MIT staff and faculty, and unaffiliated individuals.
FSILGs
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.
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 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. Red more about the Katharine Dexter McCormick (1904) Society (KDMS).
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 planned gifts.
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 Annual Fund dollar total, and are added to an individual’s gift total for purposes of donor recognition. Read more about matching gifts.
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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.
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 planned gifts.
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 Annual Fund totals, but are included in some Reunion Gift campaigns.
restricted fund
Contribution made for a clearly specified purpose and none other.
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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