Glossary
Summary of the revenues, costs, and expenses of an organization during an accounting period. Together with a statement of financial position as of the end of an accounting period and a cash flow statement, it constitutes an organization's financial statement.
Statement showing the status of an organization's assets, liabilities and net assets on a given date. Assets are equal to liabilities and net assets, and the statement of financial position is a listing of the items making up the two sides of the equation. Together with a statement of activities for the duration of the accounting period and a cash flow statement, it constitutes an organization's financial statement.
The use of optimization tools to determine long-term asset allocation benchmarks to achieve long-term objectives. The objectives vary, depending on the type of asset owner and its obligations to beneficiaries or other stakeholders. It involves making decisions around allocation to high-level asset classes—that is, equity/fixed split, domestic/international/emerging equity split, duration of fixed income, and the split between nominal and inflation-adjusted fixed income, allocation to unlisted assets and sustainability-themed assets. This is distinct from other considerations such as portfolio structuring (including allocation to capital weightings, styles and sectors, and includes active/passive analysis) and manager selection (the evaluation of manager performance in order to select one suitable for a client's requirements).
The lender takes a subordinate status in relationship to senior debt, in order to leverage more capital into a project. In the case of liquidation (e.g. the company winds up its affairs and dissolves), the subordinated lender would be paid back after senior lenders.
A source of income or cost reduction that is not generated directly from a CDFI's own operations. The Aspen Institute describes subsidy as grant income, third party contracts, or below-market financing from the philanthropic or public sectors.
Investment with long term gains expected in social, environmental and governance areas. A vision of a sustainable future is set as a reference point for developing strategic actions.
The specific corporate purpose of an organization must allow it to qualify as a tax-exempt organization under the Internal Revenue Code. The Code Section 501 sets forth 29 types of nonprofit organizations that are exempt from at least some federal income taxes. See Charitable Purposes above for the requirements of a 501(c)(3) corporation to which contributions are deductible.
The part of the net assets of an organization resulting from contributions and other inflows of assets whose use by the organization is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the organization pursuant to those stipulations.
A donor-imposed restriction that permits the done organization to use up or expend the donated assets as specified and is satisfied either by the passage of time or by actions of the organization.
The length of time until a loan or other obligation is due.
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