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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.5 Lead Trust  >  3.5.9 Disclosure LT - SEC Exemption  >  Basic Quiz

Basic Quiz - 3.5.9 Disclosure LT - SEC Exemption

1. The Philanthropy Protection Act was designed to address security issues regarding investments held by charities.
           
2. The Philanthropy Protection Act requires disclosure to donors of commingled investments by the charity.
           
3. The Philanthropy Protection Act does not require the charity to disclose lead trust investments even if it is serving as trustee.
           
4. The Philanthropy Protection Act applies to bank and trust companies.
           
5. The Philanthropy Protection Act always applies to charities when they serve as trustee of charitable lead trusts regardless of whether the investments are commingled.
           
6. The Philanthropy Protection Act requires disclosure of material facts and the Act states which material facts need to be disclosed.
           
7. The disclosure by the charity does not need to be extensive, it just needs to be a full and fair disclosure.
           
8. The information given to donors must assist them in understanding the nature, quality and risk of the various investments.
           
9. The Philanthropy Protection Act requires a specific form upon which to provide the disclosure information.
           
10. The charity should have its disclosure statement reviewed by its own legal counsel.