Giving @ UAHuntsville

      Additional Links
      • About Huntsville
      • Administration
      • Alumni
      • Current Students
      • Directories
      • Faculty / Staff
      • Future Students
      • Site Index
      • Visitors Center

Giving Terminology

Annual Giving
A broad term for programs that reach out to the greatest numbers of alumni and friends and provide the broadest opportunities and encouragement for UAH’s constituencies to make a gift each year.

Annual Fund
The fund, called a Fund for Excellence or enrichment fund at UAH, designated by an individual college, department, or program to hold gifts that are given with no restrictions. Gifts free of restrictions give deans, chairs, and directors a reliable, flexible supply of funds that enable the unit to place resources where they are most immediately needed or where opportunities are greatest. Common uses of unrestricted funds include scholarships, classroom and teaching laboratory upgrades, new academic initiatives, and the purchase of books, collections, supplies and equipment.

Beneficiary
An individual or organization that receives an interest in property or funds from an estate, a trust, or a contract such as a life insurance policy or employee benefit plan.

Bequest
A transfer, by Will, of property such as cash, securities (stocks), and tangible property.

Benefits of Giving
1) The satisfaction of putting something back for present and future UAH students;
2) An income-tax charitable deduction;
3) A sense of shared interest and collective action with other UAH donors;
4) Membership in the President’s Council for donors of $1,000 or more annually, or whose cumulative lifetime giving exceeds $25,000;
5) Donors who give appreciated securities also can avoid capital gains taxes;
6) Donors who enter into life-income arrangements such as a charitable remainder trust can receive income for life;
7) Expressing your belief in the value of education of the highest quality; and
8) Making a difference by providing a young person with the opportunity to pursue their goal and determination to achieve something special in life with your help.

Campaign
An organized fundraising effort to solicit substantial funds for UAH usually extending over a period of years.

Annual Campaign
A campaign conducted each year to generate expendable, operating income. Capital Campaign A campaign to raise funds to finance major projects and/or programs requiring extensive outlays of capital such as the acquisition of property or equipment, construction, renovation, special projects, and programs. Endowment Campaign A campaign to obtain funds specifically to create or supplement an organization's endowment fund. Comprehensive Campaign A campaign which seeks to build funding for all types of goals including capital, endowment and annual needs.

Capital Gain (or Capital Loss)
The difference (gain or loss) between the basis in a capital asset and the value that is realized from its sale or disposition.

Capital Gifts
Capital gifts are gifts made to build or renovate UAH facilities. Although bricks and mortar alone don’t meet UAH objectives, they provide the infrastructure that UAH needs to fulfill its mission of teaching, research, and service to the state and nation. UAH colleges, departments, and programs require capital improvements for a variety of reasons: 1) to accommodate new technologies and teaching initiatives;
2) to add classrooms, laboratories, and research facilities; and 3) to upgrade worn and outdated facilities.

Case Statement
A carefully prepared document that sets forth, in detail, the reasons why an organization needs and merits financial support. In the context of the "case is bigger than the institution," it documents its services, human resources, potential for greater services, current needs, and future plans.

Challenge Gift
A substantial gift made on condition that other gifts will be obtained on some prescribed formula, usually within a specified period, with the objective of stimulating fundraising activity.

Codicil
An amendment to a Will, made in a separate instrument and with the same formalities as the Will itself.

Deferred Gift
A gift to be received in the future, although the transaction establishing the gift occurs in the present.

Designated Gift (Restricted Gift)
A gift earmarked for specific purposes such as a named scholarship or a classroom renovation.

Discretionary Funds
Gifts that can be expended by UAH according to the donor's wishes.

Donor
An alumnus/ae or friend who has made a gift in either the current fiscal year or in the immediate past fiscal year.

Donor Recognition
The practice of providing recognition to donors for their gifts. Examples include the acknowledgment by card or letter at the time a gift is received, personal or public expressions of appreciation directly to donors, published lists of contributors (Honor Rolls), and gift clubs/recognition levels such as the President’s Council and University Circle.

Endowment Fund
Money from bequests or outright gifts to the UAH, as well as surplus departmental operating capital, that is invested in the University of Alabama Pooled Endowment Fund to produce amounts to be distributed for approved purposes. The endowment fund is not wholly expendable by the University and is invested for the purpose of retaining and increasing principal. Distribution for gift purposes coincides either with the donor's stipulation or, if there is no stipulation, at the discretion of the leadership of UAH.

Endowment Distribution Policy
The university's policy determining the percentage of income and net appreciation to be distributed for operations and other approved purposes each year.

Expendable Funds
Funds that can be totally spent in a manner consistent with the intentions of the donor. Funds Functioning as Endowments (FFAE) A fund that a department treats as endowment for long term growth, however the principal can be invaded and expended in a manner consistent with the intentions of the donor.

True Endowment
When principal is invested in perpetuity with distributions made according to the endowment distribution policy in a manner consistent with the intentions of the donor.

Estate
The total assets of a deceased person. Also, the interest that a person has in any property.

Fair Market Value
The current value of an asset if sold on the open market. Federal tax laws directly address the manner of determining and reporting fair market value.

Fiscal Year
The fiscal year for UAH begins on October 1 and ends on September 30.

Fund for Excellence
A Fund for Excellence, sometimes called an annual fund or enrichment fund, is a fund designated by an individual college, department, or program to receive gifts that are given without any restrictions on their use. Unrestricted gifts are critically important because they enable the president, deans, department chairs, and directors to invest the funds to meet highest priority needs. Donors are welcome to contribute unrestricted gifts to either: 1) UAH, or 2) the individual college, department, or program of their choice.

Gift
A gift is a wonderful way for you to show your appreciation for UAH and make a difference. To give, you can write a check, use your credit card, or transfer appreciated securities or real estate. Gifts in any amount are welcome.

Gift Agreement
A contract between the University and a donor that specifies the terms of a donor's gift.

Gift-In-Kind (In-Kind Contribution)
Non-monetary items of tangible personal property such as art, collectibles, books, equipment, automobiles, inventory and other physical assets or materials which represent value to the University. Unreimbursed expenses such as food, professional or personal services, and limited use of private property are not considered gifts-in-kind by the Internal Revenue Service.

Grant
Generally an allocation from a foundation, corporation, or government agency.

Honor Roll
A listing printed by a school, college or campus listing the names of donors to the unit during a fiscal year or some other defined time frame.

Lapsed Donor
An alumnus/ae or friend who had made a gift in previous fiscal years but not in the current or immediate past fiscal year.

Laws Of Intestacy
The law governing the ownership of a deceased person's property when no specific instructions are left by the deceased.

Letter of Intent
A letter that states a prospective donor's intention to make a specified gift or legacy; it is used when a prospective donor prefers to avoid making a pledge. Since it could possibly constitute a binding obligation under some circumstances, it is advisable for a prospective donor to seek legal counsel before executing such a letter.

Life Income Gift
An irrevocable gift of cash and/or securities and/or real estate to UAH, with the donor receiving income from the donated assets for a period of time through an annuity or trust arrangement for himself or herself and/or other beneficiaries.

Market Value (See Fair Market Value)

Matching Gift
Gifts made with company or corporate foundation funds that match gifts made by a company's eligible employees to non-profit organizations that meet the company's guidelines.

Memorial
A gift to an organization commemorating either the donor or someone else, living or dead, as designated by the donor. Organizations often designate memorials and seek support from relatives and friends of the one being memorialized.

Naming Opportunity
A naming opportunity is a chance for a donor to name the endowment, building, or room made possible by his or her major gift. Often, donors name scholarship endowments to honor others.

Non-Donor
An alumnus/ae or friend who has either never made a gift or whose past giving falls out side the lapsed donor qualifications.

Nucleus Fund
Contributions made in advance of the public announcement of a campaign to demonstrate faith in the organization and belief in the campaign objectives, and to create interest and encourage giving by other prospective donors.

Outright Gift
The current transfer of a gift to UAH.

Phonathon
This collaborative telemarketing effort between the UAH Alumni Association and the UAH Office of University Development exists to support the Annual Fund programs of UAH colleges, department, and programs.

Planned Giving
The integration of personal, financial, and estate planning concepts with the individual donor's plans for lifetime or testamentary giving.

Pledge
A commitment to make a gift over a specified period usually no more than five years, payable according to terms set by the donor.

Pledge Period
The time span over which pledges may be paid, usually not exceeding five years.

Pooled Income Fund (See University of Alabama System Pooled Endowment Fund)

President’s Council
Membership in The President’s Council is accorded to individuals, corporations, foundations, and others that have made gifts to the UAH Foundation, UAH, the UAH Eminent Scholar Foundation, or the UAH Alumni Association. Active membership includes all donors whose gifts totaled $1,000 or more during the fiscal year (October 1 to September 30). Life membership recognizes donors who have made lifetime cumulative gifts of $25,000 or more. Council members are an important part of the UAH family. As such, they receive invitations to special campus events, recognition certificates, and special communications from the President. Members also qualify for reserved, low-numbered UAH license plates, with proceeds supporting student scholarships. Most importantly, participation in The President’s Council helps ensure the bright future of this remarkable university.

Prospect
Someone with the potential to make a gift who meets the selection criteria for a solicitation project, invitation list or newsletter mailing. For example, all alumni are prospects.

Restricted Gift
A gift with a specified purpose clearly stated by the donor.

Richardson Shaver Thrasher Society
The Richardson Shaver Thrasher (RST) Society was established by the UAH Foundation in 1999. The purpose of the society is to recognize the generosity of donors who name UAH as a beneficiary of a will, retirement plan, life insurance policy, life income gift, or other type of planned giving arrangement. The RST Society is named in honor of the three individuals who had the vision to step forward and promote the establishment of UAH: Patrick Richardson, the late Charles Shaver, Sr., and the late Tom Goodman Thrasher. Participation in UAH’s Planned Giving Programs bestows the membership in the RST Society. Those benefits include invitations to UAH activities, seminars, and university publications.

Technology Gifts
Technology gifts are made to enhance technological capabilities for UAH students, faculty, and staff. Putting UAH on the forefront of technology in our nation’s information-based economy is a high institutional priority. Private support consists of funding and corporate and in-kind support for computer equipment, software, wiring of campus facilities, and online course development.

Testamentary Gift
A gift of property to a person by Will, effective upon the death of the donor.

Trust
The transfer of legal title to property to a trustee to hold for the benefit of a person(s) or institution. For example: A gives property in trust, with A as trustee, to pay income to B for life and then to give property over to C free and clear.

Charitable Lead Trust
A donor creates and funds an irrevocable trust that provides for payments to UAH and/or other charitable organizations for a stipulated period of time. At the end of the trust term, the trust assets go to a designated individual. Charitable Remainder Trust A donor creates and funds an irrevocable trust that provides income to beneficiaries for life or a term of years, after which time the remainder of the trust is distributed to UAH and/or other charitable organizations. Irrevocable Trust A trust that cannot be changed or terminated by the person creating it. Revocable Living Trust A trust that can be changed or terminated by the person creating it. Usually, the income from a revocable living trust is paid to the grantor (the person creating the trust) during his or her lifetime, and to the family following the grantor's death.

UAH Gift Link
An electronic funds transfer (EFT) payment option where UAH donors may choose to make their gifts by transferring funds monthly from their checking account to UAH's account.

University Circle
The first tier of giving in UAH’s recognition program is extended to those donors whose gifts to the University of Alabama in Huntsville, including matching gifts from employers, are less than $1,000 during the current fiscal year (October 1 to September 30). Pledges do not qualify for membership in any category, nor do revocable testamentary gifts (will provisions, et al.). Irrevocable gifts trusts, annuities, et al.) do qualify for membership and are credited at face value. Corporate matching gifts count toward donor recognition.

University of Alabama System Pooled Endowment Fund
A fund established by the University of Alabama System to receive irrevocable contributions from donors. The objective of the pool is to provide income for expenditure while preserving the purchasing power of the endowment principal. In order to meet this objective, the Board of Trustees approved a spending rate for FY 1999/2000 of 5.0 percent of a three-year moving average of the market value, less fund management expenses. The fund is invested for long-term growth, with diversified investments to reduce risk. The fund employs a total return approach, with a strong emphasis on equities.

Unrestricted Gift
A gift is that is given without any restrictions on its use.

Visiting Committee
A group of influential volunteers organized by an educational institution's departments, graduate schools, and other entities. The advice and support of such volunteers, who are kept informed and involved, have proven of value in terms of gaining greater acceptance, recognition, and financial commitment from within and without the institution.

Will
Normally a legally executed written instrument by which a person makes disposition of his or her property to take effect after death.

Some definitions in this section were taken from the Glossary of Fund-Raising Terms published in 1986 by the National Society of Fundraising Executives Institute and from the University of Michigan and the University of North Carolina at Chapel Hill.