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1. (5 points for each answer) Beginning on page 5 of the charitable giving outline, I have written the question: “What’s the taxation in these circumstances?” Following that question there are 5 places where you will find the word “Result.” Your assignment is to tell me the result in each circumstance.


2.(10 points possible) Donna has some shares of stock that are worth $10,000. Donna paid $1,000 for the stock. She wants to give her church $10,000. She wants to know whether she should write the church a check for $10,000 (she has the cash) or if she should give the church the stock. Explain what the consequences are of either gift. State which gift is better and why.


3.(10 points possible) Is it a good idea or a bad idea for a person to own a life insurance policy on her own life? Explain why. Does it make matters better or worse if the insured policy owner is also the beneficiary? Why?

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