Archive for the ‘Level 2’ Category

The IBRD is…

Monday, July 27th, 2009

The IBRD, which stands for the International Bank for Reconstruction and Development, is the arm of the World Bank that focuses on middle-income and creditworthy poor countries.  The IBRD strives to promote sustainable, equitable and job-creating growth, reduce poverty, and address issues of regional and global importance.

The IDA is…

Monday, July 27th, 2009

The IDA, which stands for the International Development Association, is the arm of the World Bank that focuses on the poorest countries in the world. It aims to reduce world poverty by issuing interest-free loans and grants.

Form 1040 is…

Friday, July 24th, 2009

Form 1040 is an individual income tax return form every qualifying taxpayer has to fill out annually and submit to the IRS. You only have to file form 1040 if you make more than a certain amount of money in a year.

What kind of taxpayer are you?

Friday, July 24th, 2009

You have a different filing status (taxpayer type) depending on your living situation. Your filing status helps determine your eligibility for certain credits and deductions and how much those deductions are worth, how you should submit tax information to the government, and how much you need to pay in income taxes. There are five main filing statuses, each generally designating a different level of financial dependence or independence.

“Single” is basically the square one of filing statuses: it means you’re only responsible for yourself.

If you’re married, you and your spouse can choose either the “married filing jointly” or “married filing separately” statuses. If you file separately, you’re basically treated as two “single” individuals, while joint tax returns make the two of you more like one entity.

If you file as “head of household,” it means that you have at least one dependent. A dependent is someone who has someone else (you, in this case) provide at least half of his or her income. Children and elderly or retired parents are the most common dependents, but you can claim anyone who fits this description as your dependent. When you file as head of household, you’re saying that you’re responsible for supporting at least one other person, so in return you have to pay less in taxes yourself. Lastly, you can file as qualifying widow/widower with dependent child; this status also decreases your taxes because you have a dependent to support and you’ve lost a source of income with the death of your spouse.

Nonprofit Articles of Incorporation are…

Thursday, July 23rd, 2009

Articles of incorporation are the basis of a legal document that describes the purpose of a company or a nonprofit organization, what it does, and how it is structured (much like the Constitution of the United States). Drafting articles of incorporation is the first step to starting a nonprofit or a corporation.

Nonprofit Seed Money is…

Thursday, July 23rd, 2009

Seed money is the first round of funds given to a startup company or nonprofit organization to pay for getting it off the ground. For companies, this money is the first investment they receive and while risky, can be highly profitable for the investor if the company does well.

A Family Foundation is…

Sunday, July 5th, 2009

A family foundation is a private organization whose funding comes from one single family.

An Asset Class is…

Thursday, July 2nd, 2009

An asset class is a category used to differentiate types of assets. For example, equities, fixed income, alternative assets, and FX and commodities are all asset classes – they’re instruments of value, but each has its own unique properties.

Systemic Risk is…

Tuesday, June 30th, 2009

Systemic risk is the likelihood that a whole financial system will fail if something goes wrong in one of its many, small, connected parts. Just like a single tree falling on a power-line can take out an entire grid, the failure of a single financial sector can have wide-reaching effects across the economy.

A 501(c)(3) is…

Tuesday, June 30th, 2009

A 501(c)(3) is a religious, literary, charitable, educational, or scientific nonprofit organization that is exempt from paying certain taxes. The name refers to the specific section of tax law that allows this.