Trusts at the University

Meanings of terms

Some of the expressions used in this website are explained below.


Absolute bequest

A bequest made without conditions by a Will; the bequest must be used for an object of the University as set out in section 4A of the University of Melbourne Act 2009 (Victoria). View section 5

Absolute gift
A gift made without conditions; the gift must be used for an object of the University, as set out in section 5 of the Melbourne University Act 1958 (Victoria). View section 5
Award
An exhibition, scholarship, prize or bursary. An award of these types can be monetary or non-monetary; a recipient may be selected on the basis of academic and non-academic criteria, depending on the terms of the trust.
Bequest
A gift under a Will. The Will specifies the terms on which the bequest is made, in particular the purpose of the gift.  There are two types of bequest: specific bequests (of which a legacy is an example), and residuary bequests. Also called a testamentary gift.  See also absolute gift. View bequest information
Beneficiary
A person who or an institution that benefits under a Will.
Bursary
An award, usually a grant to a student in financial need.
Chair
A professorial position for a specialist area of research and/or teaching.
Council
The governing body of the University, directing and superintending the University as a whole.
Cy près application
Cy près (pronounced 'see pray') means 'as close as possible'.  A cy près application is a formal application by a trustee, made pursuant to the Charities Act 1978 (Victoria), to change the trust terms, and occurs only where it is impossible or impracticable to implement the trust terms as originally specified by the donor.  The value of the trust capital determines whether a trustee makes a cy près application to the Attorney-General for Victoria or to the Supreme Court of Victoria, requesting the alteration of the trust terms in a manner that is 'as close as possible' to the original trust terms specified by the donor.
Deductible Gift Recipient (DGR)
The Australian Taxation Office may endorse an organisation as a deductible gift recipient, meaning that certain gifts to that organisation may be claimed by the donor as a tax deduction, where the gift is made during the lifetime of the donor.  The University is endorsed as a deductible gift recipient. View DGR information
Donor
The person who makes a gift.
Endowment
A gift held indefinitely (or 'in perpetuity'), or for a long period, with all or a portion of the income arising from the gift used for a charitable purpose, namely the particular work of the University specified by the donor.
Exhibition
A more formal expression describing a prize.
Fellowship
A research position, usually financially supported by a stipend paid to an individual researcher.  A fellowship allows graduate students, postdoctoral students, and university staff to work closely with a senior scholar or staff member to develop their careers in a specific manner.
Gift
A donation.  A gift to the University must be only for an object of the University, as set out in section 5 of the University of Melbourne Act 2009 (Victoria).  View section 5   A gift may be made during the lifetime of the donor (an 'inter vivos gift') or after the death of the donor (a 'bequest'). A gift may take many forms, including cash, property, objects, works of art, shares, library or archive materials. The terms of the gift determine whether the University holds the gift as trustee.  See also absolute gift
In specie transfer
'In specie' means 'in its actual form'.  An in specie transfer is the distribution of assets in their present form, rather than selling the assets and distributing the net proceeds from that sale.
Inter vivos gift
A gift made during the donor's lifetime. View inter vivos gift information
Lectureship
A position as a lecturer (including a visiting lecturer) for a particular purpose, or a series of lectures on a common theme or specialised topics.
Legacy

A cash gift; a type of specific bequest.

Net Annual Income

See section on investment and financial management.

Prize
An award made on the basis of past academic performance, such as a prize for the top student in a particular subject.
Purpose
See trust purpose.
Research

Systematic investigation and study, to establish facts and reach new conclusions.  The costs of research include expenses arising from the research facility (eg hiring a laboratory), equipment (eg an electron microscope), consumables (eg chemicals), salaries (eg researchers, supervisors) and other overheads (eg electricity).

Research scholarships

An award made to assist research (which may include in whole or part, depending on the terms of the trust, the researcher's salary and other associated costs incurred by the researcher with respect to the research).

Residuary bequest
A gift by Will of a portion of the residuary estate of the donor. Contrast with a specific bequest.
Residuary estate
The balance of the estate of a deceased person remaining after the payment of all specific bequests (including legacies), debts, funeral expenses, and all expenses associated with administering the estate.
Scholarship
An award made to assist study, travel and/or research.
Specific bequest
A bequest of an asset precisely described in the Will; for example, a stated sum (called a legacy), a painting, a parcel of shares or a collection of books.  Contrast with a residuary bequest.
Stipend
An allowance or salary, paid at fixed intervals.
Testamentary gift
A formal term for a bequest.
Trust
In the context of the University, an arrangement by which the University as trustee receives and holds a gift for the purpose and in the manner specified by the donor in the trust terms.
Trust capital
The original gift or the present value of it, as represented by the current investments corresponding with the original gift.  The trust capital is held by the trustee for the purpose and in the manner specified by the donor in the trust terms.
Trust income
The revenue arising from the trust capital.  Distributed trust income is expended by the trustee for the purpose and in the manner specified by the donor in the trust terms.
Trust instrument
The document(s) which set out the trust terms.  In the case of an inter vivos gift, a letter from the donor or other document from the donor records the trust terms.  In the case of a bequest, the donor's Will records the trust terms.
Trust purpose
The object (the intended benefit) of a gift, as specified by the donor in the trust terms.
Trust terms
The conditions specified by the donor with respect to a gift, including the trust purpose.  The trust terms govern the conduct of the trust and are supplemented by specified administrative arrangements determined by the University as necessary to give effect to the trust terms.
Trustee
The person who or the entity that holds the trust capital for the purpose and in the manner specified by the donor in the trust terms.  In the case of many trusts associated with the University, the University is the trustee.
University
The University of Melbourne.  View entity details
Will
A written record, executed in a formal way, by which a person specifies the distribution of his or her assets after death.

 

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