CFRE Major Gifts and Planned Giving

Question 1

What is a 'planned gift'?

Accepted Answer

A charitable contribution arranged in advance through legal or financial vehicles, often fulfilled through the donor's estate

Answer

A gift that is budgeted in the organization's annual plan

Answer

A gift scheduled to be paid in installments over time

Answer

A gift from a foundation that is planned in a grant cycle

Question 2

Which of the following is the most common type of planned gift in the United States?

Accepted Answer

Bequest through a will or living trust

Answer

Charitable remainder trust

Answer

Charitable lead trust

Answer

Charitable gift annuity

Question 3

A 'charitable remainder trust' (CRT) benefits the donor by:

Accepted Answer

Giving the donor (or named beneficiaries) income for life or a term of years, with the remainder passing to charity

Answer

Providing an immediate lump sum cash payment to the charity

Answer

Requiring the charity to manage all investment decisions

Answer

Eliminating all federal estate taxes on the donor's estate

Question 4

What is a 'bequest society' in planned giving?

Accepted Answer

A recognition program for donors who have notified the organization of their intention to include the charity in their estate plan

Answer

A legal entity that holds planned gift assets in trust

Answer

A committee that approves all estate gifts over a certain threshold

Answer

A special investment fund for planned gift proceeds

Question 5

Which of the following is a key indicator that a donor may be a strong planned giving prospect?

Accepted Answer

The donor is an older, loyal annual fund donor with no children and a long history of supporting the organization

Answer

The donor is under age 30 and making their first gift

Answer

The donor made one large event-night gift

Answer

The donor gives only through workplace giving programs

Question 6

What is a 'gift annuity'?

Accepted Answer

A contract where a donor transfers assets to a charity in exchange for fixed income payments for life, with the remainder benefiting the charity

Answer

An insurance product that donates to charity at death

Answer

An annuity fund managed by the government for charitable purposes

Answer

A pooled investment fund open only to nonprofit organizations