Archive for the ‘Level 1’ Category

You’re a foundation. Do you sit on that mountain of money or make it rain?

Tuesday, July 28th, 2009

John Hunting started the Beldon Fund 10 years ago with the intention of giving it all away by this year. He said, “I felt as an environmentalist that it was imperative to spend the money now, because it would be silly to wait for the future if there wasn’t going to be a future.” As planned, the Fund closed to meet its deadline.

This spend-down strategy is called a sunset provision. Foundations use sunset provisions when they want to assert a sense of urgency for a cause. The Beldon Fund spent approximately $120 million over its decade lifespan building a groundswell of support for its environmental cause. About 12% of family foundations adopt sunset provision like the Beldon Fund.

A Salary is…

Monday, July 27th, 2009

A salary is the compensation (e.g. salary and benefits) you earn for working at a job. Salaries are usually paid on a weekly or bi-monthly basis, and are generally referred to as an annual amount.

A Traveler’s Check is…

Monday, July 27th, 2009

A traveler’s check is a a pre-printed check issued by a financial institution (the first was American Express) that serves the same purpose as cash, but is not accepted at every store (unlike cash). People often use these when traveling because, unlike cash, they can be replaced if lost or stolen.

What does the World Bank do?

Monday, July 27th, 2009

The World Bank is comprised of two institutions — the IBRD (International Bank for Reconstruction and Development) and the IDA (International Development Association) — and collectively has the common goal of providing technical and financial assistance to developing countries around the world.

Basically, the World Bank gives money – in the form of low-interest loans and grants – to developing countries for many different developmental purposes: education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management.

Treasury Notes are…

Monday, July 27th, 2009

Treasury notes (T-Notes) are government securities that pay a set interest rate every six months. The notes are sold with set maturities (how long until they reach face value) of 2, 3, 5, 7, and 10 years.

A Trustee Is…

Monday, July 27th, 2009

A trustee is a person or member of a board chosen to direct the funds and the policies of an institution, often a charity or a foundation.

Free Trade is…

Wednesday, July 22nd, 2009

Free trade is when countries can buy and sell goods with one another without any government barriers like tariffs or, at the extreme, an embargo. That doesn’t mean you get stuff for free, it just means the government isn’t adding any extra costs to your purchase.

A Broker is…

Wednesday, July 22nd, 2009

A broker is a person or company that charges a commission to buy and sell assets for an investor.

An Annual Report is…

Monday, July 20th, 2009

An annual report is a document required by the SEC (Securities and Exchange Commission) to be sent to a company’s shareholders at the end of every year. The report details the company’s financial results for the prior 12 months, past years and their outlook for the future. Most nonprofits also publish annual reports.

How much should you tip the waiter?

Monday, July 20th, 2009

Everyone asks themselves the same question once the bill comes: How much should I leave for a tip?

While there is no one correct answer, there are some standards that most people abide by. Generally, leaving an 18-20% tip is generous and is appropriate for good service. A 10% tip would be appropriate for subpar service, and for really bad service you’re not obligated to leave a tip at all. Of course the opposite is true, too – leave as much as you want for awesome service.

The important thing to remember is that much of a waiter’s salary is made up of the tips they receive from each table.

An easy way to calculate the tip is to find 10% by moving the decimal one place to the left ($25.00 becomes $2.50) and then double it for 20% ($5.00).