Lapse

The termination of a right or privilege due to inaction. In insurance, lapses occur on a policy if the policyholder fails to pay premiums. In this case, the right to receive the benefit lapses. In options, the contract lapses if the option is not exercised on or by the expiration date. In this case, the right to buy or sell the underlying asset lapses.

Lapse.

A lapse causes a policy, right, or privilege to end because the person or institution that would benefit fails to live up to its terms or meet its conditions.

For example, if you have a subscription right to buy additional shares of a stock at a price below the public offering price, you must generally act before a certain date. If that date passes, your right is said to lapse.

Similarly, if you have a life insurance policy that requires you to pay annual premiums, the policy will lapse if you fail to pay the premiums in time.

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References in periodicals archive

There are two ways to replace the active donors who don't respond: lapsed renewal and new donor acquisition.

Long-lapsed donors: they might be gone, but don't forget them

With a discretionary trust, the lapse of a power of withdrawal will be a taxable gift by the holder [subject to the application of the exception in section 2514(e)], except to the extent his or her creditors may reach the lapsed amount (Practical Drafting, October 1996, chapter nine, section F, page 4657).

Allocation of GST exemption to contributions to life insurance trusts

The cost to reactivate a lapsed donor by telephone has been running at approximately $2 per reactivated donor, Christianson said.

Make the call: lapsed donors responding to personal touch

2) After multiple attempts at treating the donor as lapsed, these donors might then be cycled back into acquisition efforts, where despite having been a long-time donor earlier in their lifetime, they are now spoken to as if they've never been supportive at all or are not recognized as a dedicated donor.

A lapsed attempt: are you going dark on your donors?

The Tax Court ruled that, because Eleanor did not exercise her general power of appointment in full, the unexercised (or lapsed) portion of the trust, which passed to the grandchildren, was subject to the GST tax as a post-Sept.

Eighth Circuit allows exception to GST tax

The old fundraising adage "as acquired so renewed" is an effective but ho-hum way to acquire donors and to recapture those slacker-donors who have lapsed.

Getting them back: reacquiring lapsed donors differently. (Donors)

* Is the expected increase in the value of the partnership interest, from the time of receipt to the time the risk of forfeiture has lapsed, substantial?

Receipt of a conditional partnership interest for services