Thursday, May 2, 2024
Taxation and Giving

1.6.2 Basic Quiz -- Gift Premiums
Treas. Reg. 1.107A-1(h) says that token benefits may be disregarded for purposes of determining a donor's charitable income tax deduction.
     True      False
The safe-harbor rules for small transfers to donors can be found in the Treasury Regulations.
     True      False
The value of token benefits given to donors without reducing the income tax deduction is indexed for inflation.
     True      False
For administration and recordkeeping reasons, small transfers from charities to donors are exempt from the reporting rules.
     True      False
An example of a token benefit is a $5 keychain that has the name or logo of the charity printed on it.
     True      False
For donors who make larger gifts, the token benefit may be 2% of the donor's gift, subject to a ceiling limit.
     True      False
In valuing a charity's gift to a donor, charity must use the comparative sales method because it is deemed the most accurate.
     True      False
A donor who makes a gift of $10,000 may receive a gift from charity valued at $200 ($10,000 x 2%) without having to report the gift.
     True      False
A charity naming a building after a donor who has made a substantial gift is an example of an impermissible token benefit.
     True      False
Intangible religious benefits need to be properly reported and documented in order to fall within the "token benefit" safe harbor rules.
     True      False



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