Certified Senior Advisor (CSA) Practice Test

A charitable gift annuity is an arrangement that enables Marjorie to make a charitable donation while simultaneously receiving income. In this type of contribution, Marjorie would contribute cash or property to a charity in exchange for regular payments, typically for the rest of her life. This allows her to support the charity she cares about while still receiving a stable income.

The payments she receives can be a fixed dollar amount or a percentage of the contributed amount, providing financial security. This arrangement also offers potential tax benefits to Marjorie, as she may receive a charitable tax deduction for the portion of her contribution that benefits the charity, which further incentivizes this type of charitable giving.

This contrasts with the other options, such as a charitable foundation or a charitable lead trust, neither of which guarantees income directly to the donor in the same straightforward manner as a charitable gift annuity. A testamentary charitable lead trust would not provide income during Marjorie's lifetime but rather distribute income to the charity for a specified term or until her death, which wouldn’t satisfy her need for immediate income.