Q & A: General Planned Giving Quiz

1. What is the best definition of the term "planned gift"?

A. It is making a gift in your will.
B. It is the gift of a building.
C. It is the idea of making a meaningful gift to a charitable organization during life or at death.
D. It is the donation of $25 cash.

2. Which of the following are planned gifts?

A. single outright lifetime gifts
B. a gift in your will
C. a charitable trust
D. all of the above

3. One example of an outright lifetime gift is

A. long-term appreciated and readily marketable property given today.
B. a bequest in a will.
C. a gift of personal property after you're gone.
D. a gift of your home after you're gone.

4. Life insurance is a good example of a revocable arrangement for future gifts because death benefits for charity reduce a taxable estate, pass contractually outside of probate and are less subject to contest than bequests BUT the gift does involve large administrative expense or one to two years of red tape.

True or False.

5. A charitable remainder trust provides donors the greatest tax advantages. Which of the below is not one of these advantages?

A. an immediate income tax deduction
B. future tax deductions every year
C. avoidance of upfront capital gains tax
D. potentially increased lifetime income

6. If one of your financial objectives is to avoid the tax on capital gains, the best gift might be

A. to contribute appreciated stock that you have held for at least a year.
B. to make a bequest in your will.
C. to give a gift of real estate that has lost half of its value.
D. to give cash.

7. If one of your financial objectives is to help put grandchildren through college, the best gift might be

A. to provide a gift in your will if your grandkids are age 4 and you are age 55.
B. to create a savings account.
C. to give funds to a college now.
D. to create an education unitrust, making payments to a grandchild for tuition costs.

8. If you have special possessions suitable for a favorite organization's retention and use, you should donate a valuable collection or other tangible objects.

True or False

9. Other than cash, the simplest and most frequently used alternative gift is

A. a gift of a stamp collection
B. a gift of long-term appreciated and readily marketable property, such as stock and real property.
C. a gift of a vacation home
D. none of the above

10. You should consider making a planned gift if

A. You're interested in furthering an organization's mission
B. You're interested in reducing taxes
C. You're interested in possibly increasing your income
D. all of the above

Now, click here to check your answers.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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