An endowment is a permanent fund bestowed upon an individual or institution, such as a university, museum, hospital, or foundation, to be used for a specific purpose.
Gifts to charitable or educational institutions may provide tax advantages to individuals and corporations in the form of itemized deductions in computing taxable income. Gifts qualify as deductible charitable contributions only if made to, or for the use of, certain organizations.
A gift involves transferring title by voluntary action of the owner without receiving anything in exchange. A gift of property is a:
1. Passing of title;
2. Made with the intent to pass title;
3. Without receiving money or value in consideration for the passing of title.
Gifts can be classified as:
1. Inter vivos gifts;
2. Gifts causa mortis.
3. Gifts and transfers to minors.
4. Conditional gifts.
5. Anatomical gifts
The donor is the person making the gift, and the donee is the person receiving the gift. A gift may be made as a result of something the donee has done, but this is not consideration unless receiving the "gift" is a condition of doing something - then it is not a gift.
An inter vivos gift is what we think of as an ordinary gift between two persons. An inter vivos gift is made if a donor intends to convey all rights to the property at the present time and delivers the property to the donee. The gift takes effect upon the donor's intent to transfer ownership and making delivery. The donee can refuse the gift. If there is no acceptance, the gift is not complete. Delivery ordinarily involves handing the gift over to the donee. This can be accomplished by physically delivering the gift or by symbolic delivery.