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2026 Statistics

Key Facts: CAP Exam

Required Courses

GS 849, GS 855, GS 856

70%

Passing Score

Per course exam

2 hrs

Exam Duration

Per course final

$3,500

Total Program Cost

Approximate; $1,150/course

60%

AGI Limit (Cash to Public Charity)

IRC §170

150-250

Study Hours

Across three courses

The CAP program requires three online courses (GS 849, GS 855, GS 856) administered by The American College of Financial Services, each ending with a 2-hour online proctored final exam. Course exams contain approximately 100 multiple-choice questions and require a 70% passing score. Tuition is approximately $1,150 per course (~$3,500 for the full program). The curriculum emphasizes advanced charitable planning techniques including CRTs, CLTs, donor-advised funds, family foundations, and integration with estate and wealth-transfer strategies.

Sample CAP Practice Questions

Try these sample questions to test your CAP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 300+ question experience with AI tutoring.

1A donor contributes $50,000 cash to a public charity in 2026. What is the maximum percentage of the donor's adjusted gross income (AGI) that may be deducted as a charitable contribution in the year of the gift?

A.20%

B.30%

C.50%

D.60%

Explanation: Cash contributions to qualified public charities (50% organizations) are deductible up to 60% of the donor's AGI under IRC §170(b)(1)(G). Excess amounts may be carried forward for up to five years.

2Which characteristic best distinguishes a donor-advised fund (DAF) from a private foundation?

A.DAF contributions are revocable while foundation contributions are not

B.DAF contributions are irrevocable, and the donor retains only advisory privileges over distributions

C.DAFs allow the donor to retain legal control over assets

D.DAFs are subject to a 5% minimum payout requirement like private foundations

Explanation: A donor-advised fund is a separately identified account at a sponsoring public charity. Contributions are irrevocable, the sponsor holds legal control, and the donor retains only advisory (not legally enforceable) privileges over investments and grants. DAFs are not subject to the 5% private foundation payout rule.

3What is the primary tax benefit of the bunching strategy for charitable giving?

A.It allows the donor to avoid capital gains tax

B.It concentrates multiple years of charitable gifts into one year so the donor can itemize and exceed the standard deduction

C.It eliminates the AGI limitation on charitable deductions

D.It converts ordinary income into capital gains

Explanation: Bunching means concentrating two or more years of planned charitable giving into a single tax year, often through a DAF, so the donor's itemized deductions exceed the standard deduction in that year. In off-years the donor takes the standard deduction. This strategy became more valuable after the TCJA increased the standard deduction.

4An IRA owner age 75 wants to make a 2026 qualified charitable distribution (QCD) directly from her traditional IRA to her favorite public charity. What is the approximate annual QCD limit per individual for 2026?

A.$50,000

B.$100,000

C.$108,000

D.$111,000

Explanation: The QCD annual limit is indexed for inflation and is approximately $111,000 per individual for 2026 (up from $108,000 in 2025). QCDs from a traditional IRA by an owner age 70½ or older count toward required minimum distributions and are excluded from gross income.

5A donor sells a parcel of land to a public charity for $200,000 when its fair market value is $500,000. The donor's basis is $100,000. What type of charitable transaction has occurred?

A.An outright gift of $300,000

B.A bargain sale, with $200,000 sale and $300,000 charitable gift

C.A bargain sale, with the entire $500,000 as charitable gift

D.A taxable sale of the entire $500,000

Explanation: A bargain sale to charity is part sale and part gift. The donor receives $200,000 (sale portion) and is treated as making a charitable gift of $300,000 (FMV minus sale price). Basis must be allocated proportionally between the sale and gift portions for gain calculation.

6Which of the following is a DISADVANTAGE of using a donor-advised fund compared to a private foundation?

A.The donor cannot make grants over time

B.The sponsoring organization holds legal control, so the donor's recommendations are not legally binding

C.DAFs require a 5% minimum payout each year

D.DAFs require detailed tax filings such as Form 990-PF

Explanation: Because contributions to a DAF are irrevocable and legal control rests with the sponsoring public charity, the donor's grant recommendations are advisory only. Private foundations, by contrast, allow the donor or family to retain governance and legal control. DAFs do not have a 5% payout rule and do not file Form 990-PF.

7A donor wants to give appreciated publicly traded stock held more than one year to a public charity. Which deduction approach generally maximizes the tax benefit?

A.Sell the stock first, then donate the cash

B.Donate the stock directly and deduct the fair market value, avoiding capital gains tax

C.Donate at the donor's cost basis only

D.Donate the stock to a private foundation to obtain a fair market value deduction

Explanation: Donating long-term appreciated publicly traded stock directly to a public charity allows a fair market value deduction (subject to the 30% AGI limit) and avoids recognition of capital gain. Selling first triggers capital gains tax. Gifts of appreciated stock to private foundations generally are limited to FMV for publicly traded stock but to basis for most other appreciated property.

8A donor establishes a new DAF in 2026 with a $1 million cash contribution. Which statement is TRUE about timing of the charitable deduction?

A.The deduction occurs only when the DAF makes grants to charities

B.The deduction is taken in the year the contribution is made to the DAF

C.The deduction is spread evenly over five years

D.The deduction is deferred until the donor's death

Explanation: Under IRC §170, the donor receives the charitable deduction in the year of the irrevocable contribution to the DAF, not when grants are later made by the sponsor. This is a major appeal of bunching through a DAF.

9Under IRC §4966, an excise tax may apply to a DAF for which type of distribution?

A.Grants to U.S. public charities

B.Taxable distributions, such as grants to individuals or for non-charitable purposes

C.Investment management fees paid to the sponsor

D.Distributions made within five years of contribution

Explanation: IRC §4966 imposes a 20% excise tax on the sponsoring organization for taxable distributions from a DAF, including grants to individuals or for non-charitable purposes. A separate 5% tax applies to fund managers who knowingly approve such distributions. Grants to qualified public charities are not taxable distributions.

10Which donor profile is generally the BEST candidate for a bunching strategy using a DAF?

A.A donor whose annual giving consistently exceeds the standard deduction by a wide margin

B.A donor whose annual giving is just below the standard deduction threshold and who does not otherwise itemize

C.A donor over age 70½ who wants charitable giving to count toward RMDs

D.A donor who plans to give only at death through bequest

Explanation: Bunching is most valuable when a donor's typical annual giving is too small to justify itemizing. By concentrating several years of giving into one year (often via a DAF), itemized deductions in that year exceed the standard deduction, while the standard deduction is used in off-years. Donors who already itemize gain less; donors making QCDs use a different strategy.

About the CAP Exam

The Chartered Advisor in Philanthropy (CAP) designation is an advanced credential from The American College of Financial Services for advisors who serve high-net-worth donors, family foundations, and nonprofit organizations. The three-course program (GS 849, GS 855, GS 856) plus ethics covers charitable giving strategies, charitable trusts, private foundation planning, tax implications of charitable gifts, planned giving vehicles, estate integration, and donor-advisor fiduciary considerations.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$1,150 per course (~$3,500 program) (The American College of Financial Services)

CAP Exam Content Outline

20%

Charitable Giving Strategies

Outright gifts, bunching strategy, donor-advised funds (DAFs), qualified charitable distributions (QCDs), bargain sales, and matching gift vehicles to donor goals and assets.

20%

Charitable Trusts

Charitable Remainder Trusts (CRAT, CRUT, NICRUT, NIMCRUT), Charitable Lead Trusts (CLAT, CLUT), pooled income funds, 5%/50% payout rules, and 10% remainder requirements.

15%

Family & Private Foundation Planning

Private foundation formation, 5% minimum payout, self-dealing rules (§4941), excess business holdings (§4943), governance, and family foundation succession.

15%

Tax Implications of Charitable Giving

AGI deduction limits (60%, 30%, 20%), 5-year carryforward, fair market value vs. cost basis, qualified appraisals (Form 8283), related-use rule, and ordinary income property.

15%

Planned Giving

Charitable Gift Annuities (CGAs), bequests, life insurance philanthropy, IRA beneficiary designations, conservation easements, and split-interest gift planning.

10%

Estate Planning Integration & Wealth Transfer

Coordinating charitable strategies with estate plans, generation-skipping considerations, business succession philanthropy, and integrating gifts with overall wealth-transfer goals.

Donor-Advisor Relationship & Fiduciary Considerations

Donor intent, fiduciary duties, conflicts of interest, gift acceptance policies, stewardship, and ethical advisor-client conduct in philanthropic planning.

How to Pass the CAP Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam fee: $1,150 per course (~$3,500 program)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CAP Study Tips from Top Performers

1Memorize the AGI deduction limits cold: 60% cash to public charity, 30% LTCG capital-gain property, 30% cash to private foundation, 20% LTCG to private foundation; the 5-year carryforward applies to all.

2For charitable trusts, drill the 5% minimum / 50% maximum payout rule and 10% remainder requirement until you can verify a CRT meets IRS qualification by inspection.

3Understand the difference between CRAT (fixed annuity), CRUT (fixed percentage), NICRUT (income only), and NIMCRUT (income with makeup) and when each fits a donor scenario.

4Master donor-advised fund mechanics: irrevocable contribution, immediate deduction at gift, donor advisory privileges only, no distribution mandate but §4966 excise tax on prohibited distributions.

5Practice private foundation rules — 5% minimum payout, self-dealing (§4941), taxable expenditures (§4945), jeopardy investments (§4944), and excess business holdings (§4943) — because excise tax questions are common.

Frequently Asked Questions

What is the CAP designation?

The Chartered Advisor in Philanthropy (CAP) is an advanced credential from The American College of Financial Services for professionals who help high-net-worth donors and family foundations plan tax-efficient charitable giving. The three-course program covers charitable trusts, donor-advised funds, private foundations, planned giving, and integration with estate planning.

How is the CAP exam structured?

CAP is earned by completing three required courses (GS 849, GS 855, GS 856), each concluding with a 2-hour online proctored final exam of approximately 100 multiple-choice questions. A passing score of 70% is required for each course exam. There is no single cumulative board exam.

How much does the CAP program cost?

Tuition is approximately $1,150 per course, totaling roughly $3,500 for the full three-course program through The American College of Financial Services. This typically includes course materials, instructor support, and the proctored final exam.

Who should pursue the CAP designation?

CAP is designed for financial advisors, planned giving officers, attorneys, CPAs, fundraisers, and wealth managers serving high-net-worth donors, family foundations, and nonprofit organizations. The American College recommends prior CFP, ChFC, CLU, or CFA experience to handle the program's advanced charitable planning content.

What 2026 charitable tax figures should CAP candidates know?

Key 2026 figures include the QCD limit of approximately $111,000 per individual from IRAs, the 60% AGI cash gift limit to public charities (30% for capital-gain LTCG property), the 30%/20% AGI limits for gifts to private foundations, the qualified appraisal threshold of $5,000 for non-cash gifts (Form 8283), and the 5-year carryforward for excess deductions.

How long does it take to complete CAP?

Most candidates complete the CAP program in 6 to 12 months, taking one course at a time. Each course typically requires 50 to 80 hours of study including readings, assignments, and final exam preparation. Total study time across all three courses ranges from 150 to 250 hours.

300+ Free CAP Practice Questions

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