Advisory Board
A group of influential volunteers organized by one of Eastern Michigan University's departments, colleges or other entities. The advice and support of these volunteers, who are kept informed and involved, are of value in terms of gaining greater acceptance, recognition and financial support for EMU.

Annual Giving
A broad term for programs that reach out to the greatest numbers of alumni/ae and friends and provide the broadest opportunities and encouragement for the University's constituencies to make a gift each year. Examples of annual giving programs include the Phone Center (telefund) and the Faculty and Staff Campaign.

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 of property such as cash, securities (stocks), and tangible property through a will.

Campaign
An organized fundraising effort to solicit substantial funds for EMU, which usually extends over several years.

Capital Campaign
A campaign to raise funds to finance major projects and/or programs such as the acquisition of property or equipment, construction and/or renovation of facilities.

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.

Case Statement
A carefully prepared document that sets forth the reasons why EMU merits financial support through private gifts. The statement documents the University's services, human resources, potential, current needs and future plans.

Challenge Gift
A substantial gift made on condition that other gifts will be obtained, usually within a specified period of time, with the objective of stimulating additional private gifts.

Charitable Lead Trust
A donor creates and funds an irrevocable trust that provides for payments to the EMU Foundation for the benefit of EMU for a specific period of time. At the end of that period, the trust assets go to beneficiaries designated by the original donor.

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 the Foundation for the benefit of EMU.

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

Deferred Gift
A gift that is committed to a charitable organization but is not available for use until some future time, usually the death of the donor.

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

Development Fund
The fund designated by an individual college or program to hold unrestricted gifts. Gifts free of restrictions give deans and program directors a reliable, flexible supply of funds that enable the college or program to place resources where they are most immediately needed or where opportunities are greatest. Common uses of unrestricted funds include student aid, faculty support, emergency renovations, new academic initiatives, research assistance, and the purchase of books, collections, supplies and equipment.

Director of Development
An individual employed by the EMU Foundation assigned to a specific academic college or University program whose sole purpose is to raise private gifts to benefit their designated unit.

Donor
An alumnus/a or friend who has made a gift to the EMU Foundation 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, and gift clubs.

Endowment
Money from bequests or outright gifts to the University that is invested in perpetuity to produce amounts to be distributed for pre-determined purposes according to the endowment distribution policy. Funds deposited in an endowment are not expendable; they are invested for the purpose of retaining and increasing the principal of the endowment. Distribution of earnings from the endowment coincides either with the donor's wishes or, if there is no restriction on spending the earnings, at the discretion of University leaders.

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

Expendable Funds
Funds that can be spent in their entirety in a manner consistent with the intentions of the donor; funds not deposited in an endowment fund.

Estate
The assets of a deceased person, all or part of which may be gifted to the Eastern Michigan University Foundation to benefit the institution's programs.

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.

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

Gift-In-Kind
Non-monetary items of tangible personal property such as art, collectibles, books, equipment, automobiles, inventory and other physical assets or materials which have value to the University.

Honor Roll of Donors
A listing printed by the Foundation that includes the names of donors to Eastern Michigan University during a fiscal year or some other specific period of time.

Honorarium
A gift to the Foundation given in honor of a living individual, as designated by the donor.

Irrevocable Trust
A trust that cannot be changed or terminated by the person creating it.

Lapsed Donor
An alumnus/a or friend who had made a gift to the EMU Foundation during a previous fiscal year but not in the current or immediate past fiscal year.

Letter of Intent
A letter of intent states a prospective donor's intention to make a gift. The letter may also contain the prospective donor's wishes as to the specific type, size, and purpose of the gift. Usually, such a letter is not legally binding but does assist the donor and institution in planning.

Life Income Gift
An irrevocable gift of cash, securities and/or real estate to the Foundation, 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.

Major Gift
A significant donation to the EMU Foundation. The amount required to qualify as a major gift is determined by the Foundation.

Matching Gift
Gifts made with company or corporate foundation funds that match gifts made by a company's eligible employees to the EMU Foundation according to the company's guidelines.

Memorial
A gift to the Foundation commemorating someone who has died, as designated by the donor.

Non Donor
An alumnus/a or friend who has never made a gift to the EMU Foundation.

Outright Gift
A current gift of cash, securities and/or real estate to the EMU Foundation.

Phone Center (telefund)
The Foundation-operated telemarketing program that supports the EMU Annual Fund and, ultimately, Eastern Michigan University's colleges and programs.

Planned Giving
An effort to identify and cultivate a person for the purpose of generating a major gift that is structured and that integrates sound personal, financial, and estate-planning concepts with the prospect's plans for lifetime or testamentary giving. A planned gift has tax implications and often is transmitted through a legal instrument, such as a will or trust.

Pledge
A signed and dated commitment to make a gift over a specified period, payable according to terms set by the donor.

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

Prospect
An alumnus/a or friend of Eastern Michigan University with the potential to make a charitable gift.

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

Will
Normally a legally executed written instrument by which a person distributes his or her property to beneficiaries after his or her death.

Some definitions in this section were taken from the Glossary of Fundraising Terms, published by the National Society of Fundraising Executives Institute.