Quiz: Planned Giving by studyfun | Mar 21, 2016 | 0 comments Welcome to your Quiz: Planned Giving Which of the following is NOT a characteristic of planned giving? A planned gift is created in the future for the future benefit of a nonprofit organization. A planned gift’s future benefit could occur later in a donor’s life, at a donor’s death or at some point after a donor’s death. A planned gift’s future benefit could be a one-time distribution, the regular payment of a specific amount or the regular payment of a variable amount. The donor may receive tax benefits as a result of his/her gift provision True or False? Planned giving is a euphemism for charitable gifts that are made at the time of the donor’s death. True False Which of the following does not describe a charitable gift annuity? A charitable gift annuity is created through the irrevocable transfer of property (cash, securities or real property) in exchange for a contract to pay the donor or the donor’s designee an annuity for life. The person who contributes an asset for the annuity is called the ‘donor’, and the person who receives payments is called the ‘annuitant’ or ‘beneficiary.’ The maximum number of annuitants is two, and payments can be made to them jointly or successively. Charities must follow the rates stipulated by the American Council on Gift Annuities. The size of the payments from a charitable gift annuity depends on the following factors: The value of the contribution. The number of annuitants. The age(s) of the annuitant(s). A and B A, B and C. True or False? In a deferred gift annuity, payments to the charity are deferred until the donor reaches retirement age. True False Which of the following is NOT a form of charitable remainder trust? Charitable remainder unitrust Charitable remainder annuity trust Charitable lead trust Charitable gift annuity C and D The charitable remainder annuity trust is the same as a charitable remainder unitrust barring a number of exceptions. The exceptions are: An annuity trust must make annual payments, regardless of the trust’s earnings in any given year It must pay a fixed amount annually that is established at the inception of the trust and never varies Additional contributions can be accepted A and B A, B and C True or False? In a charitable lead trust, the annual payments of the trust are received by the charity, and the remainders are received by the donor. True False Which of the following is true of a gift of a life insurance policy? Life insurance policies can be contributed to charity as a planned gift. The gift can be all or part of the proceeds of a policy The nonprofit must be the owner and beneficiary of a policy for the donor to be entitled to receive an income tax deduction against the gift. A and B A, B and C Which of the following is NOT a reason donors may be attracted to planned giving? There is a tax incentive It offers a mechanism to express significant affinity the nonprofit, perhaps because they or a family member have benefited from the work undertaken. A donor may be able to make a larger gift eventually than would be possible for them if they were to give an immediate and outright gift Gifts can be made where income is retained, providing secure income for themselves and/or beneficiaries It does not require the involvement of specialist advisors Be sure to click Submit Quiz to see your results! Name Email Time is Up!