Glossary of Terms beginning with D

Acronym for “Deferred Payment Charitable Gift Annuity” - A gift annuity agreement issued by a qualified charity providing for payments to the beneficiary to commence at a future date (at least one year in the future) and to continue for life.

Proceeds of a life insurance policy paid to a beneficiary of the policy at the death of the insured.

Although charitable contributions are 100% deductible, the maximum amount a benefactor can claim in any one year is limited to: a) 50% of AGI for contributions of cash, and/or b) 30% for contributions of appreciated property. In both instances it is possible to carry forward the charitable deduction for 5 additional years.

Deferred Payment Charitable Gift Annuity (DCGA) – A gift annuity agreement issued by a qualified charity providing for payments to the beneficiary to commence at a future date (at least one year in the future) and to continue for life.

A type of pension that promises to set a monthly payment for the life of a qualified retiree (or couple).

See Defined Benefit Plan

The process of investing one’s assets in a wide variety of securities with different characteristics and geographies for the purpose of risk control and potential return enhancement.

The annual percentage return earned by an investor from the payment of cash or additional stock through dividends. Example: a company earns $2 per share in dividends annually and the stock sells for $50 the earnings per share would report a 4% dividend yield.

The amount of money paid each year on a life insurance policy or share of stock to the policyholder or the shareholder.

A fund set up by a public charitable organization that makes grants to other charitable organizations on behalf of the donor, who makes grant recommendations to the fund.

Addresses mental capacity issues during lifetime and eliminates the necessity of a conservatorship and/or guardianship hearings.