CFRE Exam Prep Solved Correctly!!
Uses for Planned Gifts Answer - operations, capital improvements, endowments,
mission furthering projects
Benefits of Planned Gifts Answer - allows the donor a tax deduction, minimizes
capital gains taxes, reduces estate taxes, or provides donors with annual incomes.
Other facts about planned giving Answer - used in the future, in some form other
than cash, not an annual gift=not repeatable, relatively large for the organization and
the donor.
Where do planned gifts typically come from? Answer - donor's assets and not current
income
What is the process of soliciting planned gifts Answer - working with donors and their
advisors until the planned gifts are defined, understood and realized. Donors and
their financial advisors, the organization planned giving staff member.
Acquiring New Donors Answer - Identify loyal donors who have been giving for a
long time or make small, recurring gifts. Reach out to them through writing articles in
organization's newsletter (gift planning subjects I.e. writing a will. Also you can send
letters with information about estate planning to targeted donors.
Easiest form form of planned giving Answer - Bequests and Wills
Definition of a Bequest Answer - is a way for an individual to transfer ownership of a
specific asset to another person or charitable organization upon death. The will is the
document through which the transfer is accomplished.
*Requires minimum start-up funds.
Outright gift of appreciated stocks or bonds Answer - the donor saves taxes three
ways 1. through charitable deduction. 2. avoidance of capital gains tax 3. and
reduction of real estate tax
Life Income Gifts Answer - funded through appreciated stock, bonds or real estate.
Saves taxes and also allows donor to receive an income for their life time
Should everyone have a will? Answer - Yes. 6 out of 10 American do not have a will.
Wills allow for freedom and are tools for transferring wealth after death.
