CFRE Exam Prep questions and answers graded A+ 2023/2024

CFRE Exam Prep Uses for Planned Gifts - correct answer operations, capital improvements, endowments, mission furthering projects Benefits of Planned Gifts - correct 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 - correct 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? - correct answer donor's assets and not current income What is the process of soliciting planned gifts - correct 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 - correct 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 - correct answer Bequests and Wills Definition of a Bequest - correct 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 - correct 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 - correct 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? - correct answer Yes. 6 out of 10 American do not have a will. Wills allow for freedom and are tools for transferring wealth after death. Reporting to the IRS gifts of tangible property - correct answer gifts of more $5K- artwork, books, jewelry- must be appraised before value can be assessed and also reported to the IRS