CAP Cheat Sheet 2026

The 30 highest-yield CAP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under the Pension Protection Act of 2006, qualified charitable distributions (QCDs) from IRAs are permitted for individuals who are: → At least 70.5 years old
2. Which type of charity scam involves fraudsters collecting donations but never distributing them to intended beneficiaries? → Phantom charity fraud
3. A donor contributes a conservation easement on farmland to a land trust. Which IRC section governs the deductibility of this contribution? → IRC Section 170(h)
4. A charity solicits disaster relief funds but has no history of disaster work. This is an example of: → Opportunistic fraud exploiting donor urgency
5. What is a fundamental principle of Financial Analysis & Valuation in Certified Philanthropic Advisor practice? → Following established standards and best practices
6. Which organization provides a charity ratings system that CAP advisors can use to vet potential grantees? → Charity Navigator
7. In evaluating a charitable policy's equity outcomes, 'disaggregated data' is essential because it: → Reveals differential impacts across demographic subgroups
8. Which strategy improves nonprofit financial sustainability? → Diversifying revenue streams
9. When an insurer formally denies a claim, the denial letter must typically include: → The specific policy provision and factual basis supporting the denial
10. Under the American Council on Gift Annuities (ACGA) guidelines, what is the primary purpose of the suggested maximum payout rates? → To ensure the charity retains a projected residuum of approximately 50% of the gift
11. A Supporting Organization (SO) is a type of public charity. What is its defining characteristic? → It is organized and operated exclusively to support one or more specified public charities
12. A philanthropic advisor helps a client document a bargain sale of real estate to a charity. What TWO values must be established and documented? → The fair market value of the property and the actual sale price paid by the charity
13. In the context of bad faith insurance litigation, the insurer's conduct most likely to trigger liability is: → Failing to settle a claim within policy limits when liability is reasonably clear
14. Which of the following is NOT a characteristic of a Grantor Retained Unitrust (GRUT)? → The grantor receives a fixed dollar annuity regardless of trust performance
15. A 'coverage opinion' issued during claims handling is best described as: → A legal analysis evaluating whether a specific loss triggers policy coverage
16. Which skill is most important for success in Fraud Detection & Prevention within Certified Philanthropic Advisor? → Continuous learning and adaptation
17. What is the purpose of feedback in Certified Philanthropic Advisor professional development? → To provide constructive guidance for improvement
18. What is 'lapping' in the context of nonprofit cash receipts fraud? → Stealing a payment then covering it with a subsequent receipt from another donor
19. A donor gifts publicly traded stock held for 18 months to a public charity. Which documentation is required? → A broker confirmation of the transfer and a written acknowledgment from the charity
20. Which approach best supports quality outcomes in Financial Analysis & Valuation for Certified Philanthropic Advisor? → Systematic application of evidence-based methods
21. What is the primary goal of quality assurance in Certified Philanthropic Advisor? → Ensuring consistent standards and continuous improvement
22. What is the primary purpose of a recorded statement taken from a claimant during the investigation phase? → To lock the claimant into a version of events early in the process
23. Which metric is commonly used to evaluate nonprofit impact? → Number of beneficiaries served and outcomes achieved
24. How can nonprofits demonstrate accountability to stakeholders? → Providing regular impact reports and financial transparency
25. Which IRS requirement must a donor satisfy to substantiate a single cash contribution of $250 or more? → Contemporaneous written acknowledgment from the charity
26. An independent adjuster (IA) differs from a staff adjuster primarily because the IA: → Is contracted per-claim rather than employed by the insurer
27. A charitable gift annuity (CGA) issued by a charity obligates the charity to: → Pay fixed annuity payments to the donor for life from the charity's general assets
28. A donor-advised fund (DAF) sponsor discovers that a donor recommended a grant to a charity that benefits the donor personally. This violates: → The prohibition on private benefit and self-dealing under IRC Section 4941
29. Which approach best supports quality outcomes in Fraud Detection & Prevention for Certified Philanthropic Advisor? → Systematic application of evidence-based methods
30. When reinsurance applies to a primary insurer's claim, the reinsurer's obligation to the original insured is best described as: → Indirect—the reinsurer reimburses the primary insurer, not the original claimant