State RegulationsVA specificDifficulty 1/5
Under Virginia law (Va. Code § 38.2-106.1 and § 38.2-3113.2), a charitable gift annuity is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-106.1 and § 38.2-3113.2 govern charitable gift annuities in Virginia: the donor transfers property to a charitable organization, and the charity promises to pay an annuity to the donor or a designated beneficiary, often for life. The arrangement blends philanthropy with a payment stream, and the Virginia provisions define when and how a charity may issue such contracts without being treated as an unauthorized insurer.
Why the other options are wrong
- A) A charity buying life insurance on a director is an ordinary insurance purchase, not a charitable gift annuity under Va. Code § 38.2-3113.2.
- B) The state does not issue charitable gift annuities; they are issued by charitable organizations under the Virginia framework.
- C) A religious employer's retirement plan is an employee-benefit arrangement, not the donor-funded annuity promise defined in Va. Code § 38.2-3113.2.
Memory hook
Give property to the charity, get its annuity promise back — that's a charitable gift annuity.