Annual Giving Goal: The specific target set by an organization or an individual donor to grant a portion of their giving account within a one-year period.
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Available Giving Balance: The amount of available funds that an individual or organization has readily available for charitable gifts at a particular point in time. Funds that are pending are not deemed available for giving.

Basis Points or BPS: A common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, 0.01%, or 0.0001, and is used to denote the percentage change in a financial instrument. For example, if a stock option worth $60,000 has increased by 50 basis points or 0.5%, its value has increased by $300, and is now worth $60,300.

Beneficiary: A charitable organization designated by donors as the recommended recipient of any donor advised fund balances in case the donor becomes incapacitated or passes away and the successor does not assume the role.

Capital Gain: The positive difference between the sales price of securities and their tax basis. There are long and short-term capital gains depending on whether a security has been held longer than one year.

Contribution: An unconditional transfer of cash or other assets to a donor advised fund. The contribution is irrevocable, and the donor may be eligible for a tax deduction. The term ‘donation’ can be used interchangeably with this term.

Cause: A specific social issue, organization, or initiative that donors support financially through a donor advised fund, often aligning with their philanthropic values and goals.

Charitable Giving Rewards: Allocated charitable dollars awarded to the employees’ donor advised fund by their employing organization.

Donation: Amount that a donor gives to a donor advised fund, either when establishing the donor advised fund or adding money to it. The term ‘contribution’ can be used interchangeably with this term.

Donor: A donor is an individual or company contributing to a donor advised fund.

Donor Advised Fund or DAF: A charitable investment account administered by a DAF Sponsor. A DAF allows donors to donate cash and certain securities, recommend how they should be invested, potentially receive an immediate tax deduction, and then recommend grants to charities of their choice.

Donor Advised Fund Sponsor or DAF Sponsor: A 501(c)(3) organization that has legal control over the donor advised fund, and its operations and maintenance.

Employer Identification Number or EIN: A unique nine-digit number assigned by the Internal Revenue Service to business entities for the purposes of identification.

Engagement: A measure of interaction with a philanthropic organization or theme determined by grants intended, grants scheduled, or grants made from a donor advised fund.

Gift: An award of funds or financial assistance to an eligible organization to undertake charitable activities. In a donor advised fund, a donor can recommend that a gift be awarded to an eligible charity. The term ‘grant’ can be used interchangeably here.

Giving Account: An account established for the purpose of managing and facilitating charitable giving activities. The terms ‘charitable giving account’ and ‘donor advised fund’ can be used interchangeably here.

Grant: An award of funds to an eligible organization to undertake charitable activities. In a donor advised fund (DAF), a donor can recommend that a grant be awarded to an eligible charity. The term ‘gift’ can be used interchangeably here.

Grant Recommendation: A recommendation by a grantor to distribute funds from a charitable giving account to an eligible charity.

Investment Allocation: The division of invested assets in a portfolio commonly based on tolerance for risk and preferred investment time horizon.

Mission Statement: The main purpose for which an organization exists.

MS GIFT Donor Circular and Disclosure Statement: The MS GIFT Donor Circular and Disclosure Statement describes the policies, procedures, and services governing how to make contributions to the donor advised fund and maintain a giving account

Non-Profit Organization: An organization whose income is not used for the benefit or private gain of persons with an interest in the organization, as designated by the Internal Revenue Service. The organization is often dedicated to furthering a particular social cause or advocating for a particular point of view.

Public Charity: A non-profit organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that receives its financial support from a broad segment of the general public. Religious, educational, and medical institutions are typically deemed to be public charities.

Public Securities: Financial instruments that are publicly traded on stock exchanges or other securities markets.

Reallocation: Redistribution of invested account assets among investment pools.

Rebalance: Refers to the act of adjusting the distribution of assets within a portfolio to realign with the original or desired asset allocation strategy.

Recurring Gifts: Gifts scheduled to be distributed on a regular basis as set by the grantor.

Succession Plan: Plan whereby the donor designates one or more persons to act as successors to exercise the rights and privileges granted to donors, which include recommending investment and grantmaking selections, with respect to a charitable giving account(s) after the death or disability of the donor. Please see the MS GIFT Donor Circular and Disclosure Statement for more information.

Successor: Individuals designated by donors as part of their succession plan who will recommend investments for the donor’s donor advised fund and/or recommend charitable organizations that will receive donations in case the donor becomes incapacitated or passes away.

Scheduled Gifts: Predetermined or planned disbursements of funds from a donor advised fund or other charitable giving vehicle to specific charitable organizations or projects on set dates.

Subcause: A specific category or subset of charitable activities or initiatives within a broader charitable cause or organization.

Tax Receipt: Official document from a qualifying non-profit as a record of a charitable contribution made by a donor.

Tax Exempt Organization: A non-profit organization that does not have to pay state or federal income taxes because it meets applicable requirements.

Total Contributions: Sum value of all contributions to the donor advised fund.

Target Fund Allocation: The determined distribution or allocation of investment funds across different asset classes within an investment portfolio.

Total Gifts: The sum of gifts made to charities by dollar amount in a given year.

501(c)(3): Section of the Internal Revenue Code that designates an organization as charitable and tax-exempt. Organizations qualifying under this section include charitable, religious, educational, amateur athletic, scientific or literary groups, organizations testing for public safety, or organizations involved in prevention of cruelty to children or animals.