10% Limitation

Ten percent of corporate donors’ taxable income, without regard to charitable contribution tax deductions, is the maximum amount that C corporations can claim as deductions for gifts to nonprofits in any tax year.

20% Limitation

A percentage limitation which individual donors must apply to some gifts to private foundations.

30% Limitation

Thirty percent of an individual donors’ contribution bases, which is the maximum amount that they can claim as deductions for gifts of appreciated property to nonprofits in any tax year (and to gifts “for the use of,” rather than “to,” nonprofits, and to certain gifts to private foundations). The limit may actually be less because of the donors’ gifts qualifying for the 50% limitation.

360 Degree Feedback

An evaluation method that provides each employee the opportunity to receive performance feedback from his or her supervisor and four to eight peers, reporting staff members, co-workers and customers.

401(k)

Named after a section of the 1978 Internal Revenue Code, a 401(k) is a tax deferred, employer-sponsored qualified retirement savings plan.

403(b)

A retirement plan for non profit organizations that allows pre-tax contributions and investments to grow tax-free. However, taxes are applied upon withdrawal as that is considered income.

457

Commonly referred to as salary reduction plans or nonqualified deferred compensation plans, this type of retirement plan is available to state and municipal government employees. Plan participants may voluntarily contribute pre-tax income up to a certain amount per year.

50% Election

An election which donors can make on their original tax returns so that gifts of appreciated property to nonprofits can be deducted under the 50% limitation rather than the 30% limitation. To qualify, donors must subtract all the long-term capital gain from the value of the gift.

50% Limitation

Fifty percent of individual donors’ contribution bases, which is the maximum amount that they can claim as deductions for gifts to nonprofits in any tax year. Gifts must be “to,” not just “for the use of,” a nonprofit to qualify for the 50% limitation.

50% Limitation Charity

An organization described in IRS Section 170(b)(1)(A).

50% Organization

An organization described in IRS Section 170(b)(1)(A).

501(c)(3)

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

501(c)(4)

Nonprofit entities to which contributions are tax-deductible to the extent permitted by law. 501c(4) organizations are community or fraternal organizations that are not solely charitable.

501(c)(6)

Section of the Internal Revenue Code that exempts organizations such as chambers of commerce, boards of trade, business leagues, and similar organizations from federal taxation. Such organizations may not receive tax-deductible donations. A section 501(c)(6) organization that engages in lobbying may be required either to notify its members about the percentage of dues that are used for lobbying activities or to pay a proxy tax.

501(h)

The expenditure test for lobbying activity under IRS section 4911, which sets limits for lobbying expenditures based on budget size, but capped at $1,000,000.

501(h) Election

The option to have lobbying activity evaluated under the 501(h) expenditure test, rather than the Insubstantial Part Test.

509(a)

Section of the tax code that defines public charities (as opposed to private foundations). A 501(c)(3) organization also must have a 509(a) designation to further define it as a public charity.