Glossary

Information about planned giving can be filled with complicated terms. Most of us understand what a will or a trust is, but what about an annuity or a codicil? We’ve put together these simple definitions so that you don’t have to wonder about the next planned giving term you see.

Common planned giving terms

annuitant
beneficiary
bequest
capital gains tax
charitable gift annuity
charitable remainder trust
codicil
cost basis
donor-advised fund
estate
estate design
private foundation
probate
Staff Legacy Fund
trust
trustee
Vision Fund
will

annuitant

A person who receives fixed quarterly payments from a non-profit in exchange for a 1-time gift of cash, marketable securities or other assets.

beneficiary

An individual or organization named in a will or trust to receive cash, stocks or other assets after an individual has passed away.

bequest

A gift of cash, stocks or other assets given to a non-profit through the provisions of a will.Learn more about bequests here.

capital gains tax

A tax assessed on the profits from the sale of a capital asset such as stock or real estate.

charitable gift annuity

A charitable gift annuity is a tool that non-profits use to provide 1 or 2 individuals with quarterly income for life in exchange for a gift of cash, stocks or other assets. Learn more about charitable gift annuities here.

charitable remainder trust

A tool that makes regular payments to a beneficiary. Donors can claim a charitable tax deduction and avoid any capital gains tax on the sale of appreciated property within the trust. At the end of the term, the specified nonprofit receives the remaining amount in the trust. Learn about charitable remainder trusts.

codicil

The only legal document that can change a will after it has been signed and notarized. It can add to, subtract from or alter a will’s provisions and must be enacted in the same way as a will.

cost basis

The original price of an asset. Cost basis is used to calculate capital gains tax.

donor advised fund

A fund to which you can contribute cash or property that you give to a qualified charity. The fund provides a tax deduction in the year of the contribution but allows you to give to charities over time. Money that remains in the fund grows tax free.

estate

The personal property and financial assets of an individual.

estate design

A comprehensive review and evaluation of an individual’s estate to ensure that an individual’s estate plan is aligned with their financial and charitable goals. Learn more about Estate Design here.

private foundation

A charitable organization established by a family or business so that they can better control the use of their charitable dollars.

probate

The process of proving before a judicial authority that the document offered as the last will and testament of a deceased person is genuine.

Staff Legacy Fund

This fund offers a variety of giving options to ministry partners so they can continue to support Cru staff, and build the Kingdom of God, during retirement and beyond their lifetime. Learn more about the Staff Legacy Fund here.

trust

A legal arrangement in which an individual gives control of all or a portion of their property to a person or institution (trustee). It is the trustee’s responsibility to manage the trust in the best interest of the beneficiaries.

trustee

An individual or organization that holds or manages and invests assets for the benefit of another.

Vision Fund

A special fund created by The Cru Foundation in which a contribution is invested to generate interest income for a designated Cru ministry rather than be used to pay current expenses.

will

A legal declaration that explains how someone wishes to distribute their property after death. Learn more about wills here.