What is“Development?” 11 to Arts and Sciences events, and similar kinds of recognition. Major Gifts solicits donors to make a commitment to a specified gift over a defined length of time, for gifts larger than annual gifts. (While the vast majority of annual gifts come in below $5,000, and typically run $100 to $1,000, I have seen annual gifts of as much as $20,000, and one of $50,000. The usual time limit for pledges is one to five years, that is, a specified amount each year for a specified period of time.) Annual gifts almost always come in as cash, with the exceptions of individuals who give or sell stock. Major gifts, by contrast, often do not come as cash in one year, but frequently come as stock, as pledges over a number of years, or as in-kind gifts. What constitutes a “major gift” will be determined by how robust the financial resources are at your institution. At small or less well- endowed Colleges and Universities, a major gift can start at $25,000. At most larger institutions, it begins at $50,000 or $100,000, and the richer institutions consider $250,000 and up a major gift. This number is important because it usually also defines the minimum amount needed to establish an endowment at the institution. (An endowment is a permanently invested amount which will generate an annual amount of interest, known as expendable funds; only the expendable will be spent, not the endowment or principal.) Tracking small endowments’ investment performance and informing the donors on how their money was used is time consuming and costly. Since most institutions typically set four or five percent as the amount an endowment produces in annual expendable cash, a $25,000 endowment might generate as little as $1,000 annually. It frequently takes as much work to get a $25,000 gift as to get a $250,000 one. Trying to get prospects to give larger major gifts is one of the most important tasks for major gifts officers, so University Develop- ment offices have at times pushed up the minimum limit on major gifts, from, say, $25,000 to $35,000 or from $100,000 to $250,000. Planned Giving specialists help people write the college or University into their wills or estate plans. A good Director of Planned Giving or Planned Giving officer (sometimes called an Estate and Special Gifts officer) will know the laws and tax codes on estates, probate, and annui- ties. There are many kinds of planned gift vehicles including: Charitable