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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.3 Gift Annuity  >  3.3.5 Securities Charitable Gift Annuity Disclosure  >  Basic Quiz

Basic Quiz - 3.3.5 Securities Charitable Gift Annuity Disclosure

1. Most charities use the American Council on Gift Annuities (ACGA) rates to determine the payout rate from gift annuity contracts.
           
2. There is some concern about most or all charities offering the same rate.
           
3. It is preferable for charities to offer the same gift annuity rates.
           
4. If a charity prefers to use its own annuity rates, it may need to have an actuary verify that those rates will leave enough of a remainder to charity.
           
5. The higher the gift annuity rate offered by a charity, the lower the remainder to be left to that charity.
           
6. The American Council on Gift Annuity (ACGA) rates are calculated so that the charity will end up with approximately 50% of the gift annuity funding amount.
           
7. Before a donor signs the annuity contract, the charity should provide that donor with the proper disclosures as required by the Philanthropy Protection Act.
           
8. The Philanthropy Protection Act requires that a charity disclose to the donor how it invests its gift annuity reserve.
           
9. While it is permissible in most states to use part of the gift annuity funds immediately, it is better for the charity to invest the entire amount given to it for the gift annuity.
           
10. All gift annuities issued in regulated states may be evaluated by the appropriate state agency. The appropriate agency may be where charity is located, where the donor resides or where the annuitant resides.