What Is a Chinese Wall? The term Chinese wall, as it is used in the business world, describes a virtual barrier intended to block the exchange of information between departments if it might result in business activities that are ethically or legally questionable. In the United States, corporations, brokerage firms, investment banks, and retail banks have
What Is a Chip-And-PIN Card? A chip-and-PIN card is a type of credit card in which the cardholder must authorize the transaction by entering their personal identification number (PIN). Unlike previous cards which utilized a magnetic stripe containing information about the cardholder, chip-and-PIN cards contain a square-shaped microchip that generates and stores unique information for
What Is a Charitable Contributions Deduction? The charitable contributions deduction reduces taxable income by allowing individual taxpayers and businesses to deduct contributions of cash and property to qualified charitable organizations. The amount that can be deducted in a year is subject to limits that depend on the type of donation and how you file your taxes.
What Is a Charitable Donation? A charitable donation is a gift of cash or property made to a nonprofit organization to help it accomplish its goals, for which the donor receives nothing of value in return. In the U.S., donations can be deducted from the federal tax returns of individuals and companies making them. U.S.
What Is a Charitable Gift Annuity? A charitable gift annuity is an arrangement between a donor and a nonprofit organization in which the donor receives a regular payment for life based on the value of assets transferred to the organization. After the donor’s death, the assets are retained by the organization. The charitable gift annuity
What Is a Charitable Lead Trust? Trusts can be used in estate planning to pass on a person’s assets smoothly and to the best financial effect. A charitable lead trust is a type of irrevocable trust designed to reduce a beneficiary’s potential transfer taxes upon inheritance. They can be funded with cash and/or other assets
What Is a Charitable Remainder Annuity Trust (CRAT)? A charitable remainder annuity trust (CRAT) is a type of gift transaction in which a donor (also known as a “grantor,” “trustor,” or “benefactor”) contributes assets to an irrevocable trust that then donates to one or more charities while also paying a fixed income to one or
What Is a Charitable Remainder Trust? A charitable remainder trust is a “split-interest” giving vehicle that enables people to pursue philanthropic goals while still generating income. Tax exempt and irrevocable, they are designed to reduce the taxable income of individuals. They are set up with a donation by the trustor (also known as “the grantor”
Charlie Munger (born 1924) is the Vice Chair and second-in-command to Warren Buffett, the celebrated investor who chairs Berkshire Hathaway, a $354.6-billion diversified conglomerate based in Omaha, Neb. As Buffett’s closest business partner and “right-hand man” for over four decades, Munger has been instrumental in the growth of Berkshire into a giant diversified holding company
What Is a Chart of Accounts (COA)? A chart of accounts (COA) is an index of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories. Key
