Glossary of Terms beginning with B

Click one of the letters above to go to the page of all terms beginning with that letter.
Bargain Sale

An arrangement in which a donor sells appreciated property (stocks, bonds, real estate) to a charity a price that is significantly lower than its fair market value, in effect making a partial gift of the asset to charity. This arrangement enables the donor to recover part, all, or more of his/her initial investment in the property and to deduct the difference between the sale price and the value as a charitable gift. Note, however, that the donor must pay income tax on part of the gain, using a formula provided in tax regulations.

Basis Point

A unit of measurement equaling one one-hundreth of a percentage point (0.01%). The acronym “bps” is commonly pronounced “bips”.

Bear Market

Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market. Source: Investopedia

Historically, BEAR markets appear about once every three years.


One who benefits; usually, an individual or charity who receives gifts or income from an estate, trust, insurance policy, etc.


A gift made by will (technically, of personal property).

Bequest Gifts

Contingent Bequest - Takes affect only if all primary beneficiaries named in the will are predeceased or out of business.
Residuary Bequest - Names a charity as a recipient of ALL or a percentage of the remainder of the estate after specific bequests have been satisfied.
Specific Bequest - States a specific amount or specific asset or both be directed to the place or purpose desired. It may be a gift of cash, securities, real estate or tangible personal property.

See “Bequest”

Bequest Intention

A donor's indication of their intent to leave a future gift. An intention is neither a legal or binding commitment to an estate. A better definition is to describe it as a courtesy by the donor to inform your organization. These donors are some of the best friends your organization can ever have. These are people who have the confidence and trust in your leadership and you organization to the extent they are willing to commit to the future. 

Bequest Notification

A notification from an official representative of a donor's estate that a gift has ‘matured', meaning the donor is deceased. It is appropriate to request a copy of the document from the representative of the estate.


Any interest-bearing or discounted government or corporate security  that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity. Bondholders have an IOU from the issuer, but no corporate ownership privileges, as stockholders do. Please see “Corporate bonds”, “Municipal Bonds”, “U.S. Treasury Notes and Bonds”, U.S. Treasury Bills [T-bills]”, “Zero coupon bonds”, “Savings Bonds”.


Acronym for "Basis Point" – A unit of measurement equaling one one-hundreth of a percentage point (0.01%). The acronym “bps” is commonly pronounced “bips”.

Bull Market

Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. Source: Investopedia
There is no consensus as to how much of an increase or the duration of an up market that defines a BULL market.