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 charity solicits disaster relief funds but has no history of disaster work. This is an example of: → Opportunistic fraud exploiting donor urgency
4. What is a fundamental principle of Financial Analysis & Valuation in Certified Philanthropic Advisor practice? → Following established standards and best practices
5. Which organization provides a charity ratings system that CAP advisors can use to vet potential grantees? → Charity Navigator
6. Which strategy improves nonprofit financial sustainability? → Diversifying revenue streams
7. 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
8. 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
9. 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
10. 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
11. A 'coverage opinion' issued during claims handling is best described as: → A legal analysis evaluating whether a specific loss triggers policy coverage
12. Which skill is most important for success in Fraud Detection & Prevention within Certified Philanthropic Advisor? → Continuous learning and adaptation
13. What is the purpose of feedback in Certified Philanthropic Advisor professional development? → To provide constructive guidance for improvement
14. Which approach best supports quality outcomes in Financial Analysis & Valuation for Certified Philanthropic Advisor? → Systematic application of evidence-based methods
15. What is the primary goal of quality assurance in Certified Philanthropic Advisor? → Ensuring consistent standards and continuous improvement
16. 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
17. Which metric is commonly used to evaluate nonprofit impact? → Number of beneficiaries served and outcomes achieved
18. How can nonprofits demonstrate accountability to stakeholders? → Providing regular impact reports and financial transparency
19. Which IRS requirement must a donor satisfy to substantiate a single cash contribution of $250 or more? → Contemporaneous written acknowledgment from the charity
20. An independent adjuster (IA) differs from a staff adjuster primarily because the IA: → Is contracted per-claim rather than employed by the insurer
21. 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
22. 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
23. Which approach best supports quality outcomes in Fraud Detection & Prevention for Certified Philanthropic Advisor? → Systematic application of evidence-based methods
24. A nonprofit's executive director approves vendor invoices, signs checks, and reconciles bank statements. Which best practice is violated? → Segregation of duties
25. In assessing a donor's capacity to make a large irrevocable charitable gift, which factor is MOST critical to evaluate? → Whether the donor retains sufficient assets for personal financial security
26. What is the purpose of IRS Form 5227 filed by a charitable remainder trust? → To report distributions to beneficiaries and trust assets annually
27. In Certified Philanthropic Advisor practice, what should a professional do when facing a conflict of interest? → Disclose the conflict and recuse if necessary
28. In designing a policy evaluation, 'triangulation' refers to: → Combining multiple data sources or methods to validate findings
29. Which risk response strategy involves transferring risk to a third party in Certified Philanthropic Advisor? → Transfer (e.g., insurance)
30. What is the role of documentation in Financial Analysis & Valuation for Certified Philanthropic Advisor? → It provides an accurate record for accountability and reference