Practice Test Geeks(CAP) Certified Philanthropic Advisor Practice Test
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Charitable Giving Strategies Flashcards

6 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Charitable Giving Strategies flashcards as text

  1. Which IRS requirement must a donor satisfy to substantiate a single cash contribution of $250 or more?

    Answer: Contemporaneous written acknowledgment from the charity

    IRC 170(f)(8) requires donors to obtain a contemporaneous written acknowledgment (CWA) from the donee organization for any single contribution of $250 or more.

  2. A charitable gift annuity (CGA) issued by a charity obligates the charity to:

    Answer: Pay fixed annuity payments to the donor for life from the charity's general assets

    A CGA is a contractual arrangement—not a trust—where the charity promises to pay fixed annuity amounts for the donor's lifetime, backed by the charity's general assets.

  3. Which of the following gifts requires a qualified appraisal and Form 8283 for a deduction to be allowed?

    Answer: Non-cash property contribution exceeding $5,000

    A qualified appraisal and Form 8283 are required for non-cash charitable contributions whose total value exceeds $5,000 (other than publicly traded securities).

  4. A legacy society at a nonprofit typically recognizes donors who have:

    Answer: Included the organization in their estate plans or made deferred gifts

    Legacy societies recognize and cultivate donors who have made planned (deferred) gifts—such as bequests, CRTs, or beneficiary designations—to the organization.

  5. Under the Pension Protection Act of 2006, qualified charitable distributions (QCDs) from IRAs are permitted for individuals who are:

    Answer: At least 70.5 years old

    QCDs are available to IRA owners who are at least 70.5 years old, allowing up to $105,000 (indexed) per year to be transferred directly to a qualified charity tax-free.

  6. Which of the following is a key distinction between a supporting organization and a private foundation?

    Answer: Supporting organizations are classified as public charities and avoid private foundation excise taxes

    Supporting organizations are classified as public charities under IRC 509(a)(3), exempting them from private foundation excise taxes on investment income, self-dealing, and failure to distribute.