Skip to Main Content
GiftLaw Pro
Charitable Giving & Tax Information Service
Back to Gift Planning Website
GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.1 Income Tax Deductions  >  1.1.1 Gift or No Gift?  >  Basic Quiz

Basic Quiz - 1.1.1 Gift or No Gift?

1. Gifts to charities are deductible because they serve the private interests of donors.
           
2. Gifts to friends, family and the needy are deductible if the gift was motivated by charitable intent.
           
3. Gifts may be made for a designated purpose, such as providing scholarships to students who meet certain criteria.
           
4. When a donor personally benefits from a transfer to charity (i.e., receives goods or services in exchange for the gift), the deduction may be lost or reduced.
           
5. Gifts of partial interests in property are not deductible, subject to some exceptions.
           
6. A lawyer who donates her legal services to charity may take a charitable deduction for the fair value of her time.
           
7. A donor's offer of the use of his lake house rent-free for charity events produces a charitable deduction.
           
8. The "No Smile" rule requires volunteers to report to the IRS any fun they had while working for a charity.
           
9. "Quid Pro Quo" gifts or gifts with benefits transferred to donors, if not properly accounted for, can result in the imposition of penalties by the IRS upon donors and charities.
           
10. A deductible gift to charity may not be subject to substantial contingencies.