Basic Quiz - 8.1.1 How to Start a Program

1. Charities are required to market, manage and administer their own gift annuity programs.

True False

2. A "gift annuity reserve account" is an account where all gift annuity funds are deposited and reinvested for growth.

True False

3. At the maturity of a gift annuity, the charity is required to leave the remaining amount in the reserve account for one year.

True False

4. Tracking an individual gift annuity account is not necessary or advisable.

True False

5. The average daily balance method of account tracking is the most precise method for tracking annuity balances.

True False

6. A charity may not simply allocate gains and losses based on an individual account's proportionate share at the end of each month.

True False

7. The Crescendo Admin software gives the user more precise balance calculations than the monthly allocation method.

True False

8. It is important that a charity track the annuity balance from the inception of the organization's gift annuity program.

True False

9. Donor exchanges a parcel of real estate for a charitable gift annuity. To comply with federal law, the real estate must be placed in the reserve account the day on which it is transferred to the charity.

True False

10. The balance on the reserve account must be reduced each time annuity payments are made.

True False

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