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1. A gift annuity contract cannot be assigned to anyone except the charity.

True False

2. To assign a gift annuity contract to the charity, the annuitant must make a written declaration of his or her intent.

True False

3. There is no further deduction when the annuitant assigns the gift annuity contract to the charity because the donor took a deduction at the time the gift annuity was created.

True False

4. The deduction calculation for determining the present value of the gift annuity contract to charity is similar to the original deduction calculation.

True False

5. The deduction for assigning an annuity contract to charity is always usable up to 60% of the donor's adjusted gross income.

True False

6. When calculating the present value for an assigned annuity, you must use the current month's Applicable Federal Rate.

True False

7. A gift annuity contract is a bargain sale to the charity.

True False

8. Gift annuities are simply contracts between the donor and the charity.

True False

9. Each state has its own law governing contracts.

True False

10. The deduction for a gift annuity is the value of the charitable gift portion of the bargain sale.

True False

Basic Quiz - 3.3.7 Annuity Contract to Charity