STEP Charitable Planning & Philanthropy 2

Question 1

At what minimum age may an IRA owner make a Qualified Charitable Distribution (QCD) directly from the IRA to an eligible charity?

Accepted Answer

70½

Answer

59½

Answer

65

Answer

73

Question 2

Which type of charitable trust requires the trustee to pay a fixed annuity amount to charity for a specified term, with the remainder passing to non-charitable beneficiaries?

Accepted Answer

Charitable Lead Annuity Trust (CLAT)

Answer

Charitable Remainder Annuity Trust (CRAT)

Answer

Grantor Retained Annuity Trust (GRAT)

Answer

Net Income Makeup Charitable Remainder Unitrust (NIMCRUT)

Question 3

For a donated conservation easement to qualify for a charitable deduction under IRC Section 170(h), the contributed interest must:

Accepted Answer

Be a qualified real property interest exclusively for one of the four enumerated conservation purposes

Answer

Be a fee simple transfer of the entire property to the charity

Answer

Be a temporary restriction lasting at least 10 years

Answer

Be pre-approved by the relevant state conservation agency

Question 4

In a Pooled Income Fund, an income beneficiary receives distributions based on:

Accepted Answer

A pro-rata share of the fund's actual net income, proportional to the donor's units of participation

Answer

A fixed annuity amount determined at the time of the gift

Answer

A fixed percentage of the fund's total assets regardless of actual income

Answer

The fund's total earnings divided equally among all participating donors

Question 5

What is the key legal distinction between a Type I and a Type III Supporting Organization under IRC Section 509(a)(3)?

Accepted Answer

Type I is operated, supervised, or controlled BY the supported organization; Type III is operated IN CONNECTION WITH the supported organization

Answer

Type I may support private foundations; Type III may support only public charities

Answer

Type I has no restrictions on donor involvement; Type III requires complete donor independence

Answer

Type I serves exactly one supported organization; Type III may serve an unlimited number

Question 6

Unrelated Business Income Tax (UBIT) does NOT apply to which of the following receipts by a tax-exempt organization?

Accepted Answer

Royalties received from licensing the organization's trademark or logo to a third party

Answer

Operating a commercial restaurant open to the general public year-round

Answer

Net income from a retail gift shop regularly open to the public

Answer

Revenue from a trade show that directly competes with for-profit businesses

Question 7

What minimum charitable remainder percentage must be present in a Charitable Remainder Trust at the time of creation for the trust to qualify under IRC Section 664?

Accepted Answer

10%

Answer

5%

Answer

7%

Answer

15%