Contributions in the context of finance and taxation refer to payments made by individuals or businesses, either for charitable purposes or as required unemployment taxes. Understanding the implications of these contributions is crucial for effective financial planning.
Donated surplus, also known as donated capital, refers to the contributions of cash, property, or the firm's own stock freely given to the company. It is a component of shareholders' equity that arises when such contributions are made by stakeholders without the expectation of anything in return.
Fund raising involves efforts to solicit contributions from individuals or organizations for nonprofit entities with educational, medical, religious, political, charitable, or other stated purposes.
National Insurance Contributions (NIC) are payments made by employees and employers in the UK primarily to qualify for certain benefits and state pensions.
A Political Action Committee (PAC) is a separate and segregated fund established by an organization for making political contributions. These funds were authorized by the Federal Election Campaign Act of 1971 and clarified through subsequent court decisions.
An unfunded pension system, also known as a pay-as-you-go pension system, is a retirement plan where current workers' contributions are used to pay benefits to current retirees.
