Non-Profit Tax Quiz

There are always questions and opinions about taxes and non-profits, but do you think you really know your stuff?  Blue Avocado put together a 17-question quiz about non-profit taxes.  Don’t worry, they keep the questions light and interesting and use jargon only when necessary.  Here is a sampling of the questions:

Q – If you give a non-profit 501(c)(3) $10,000, how much less will you pay in federal taxes (assuming you itemize and are in the highest tax bracket?)

a.  $10,000
b.  $3,500
c.  $1,500
d.  $10,000, but only if you get a receipt within 60 days of the donation.

Q – A “progressive tax structure” means:

a. It is supported by “progressive” people.
b.  It is part of Obamacare.
c. People with higher incomes pay a higher percentage in taxes than people with lower incomes.
d. Taxes increase with inflation.

Q – Which of the following is legally a restriction on 501(c)(3) non-profits:

a.  Non-profit staff cannot donate blood.
b.  Non-profits cannot borrow money, except from board members and staff.
c.  Non-profit board meetings must be open to the public.
d.  Non-profits cannot divvy up the surplus at year-end and distribute it to staff.
e.  b and c

Q – To be officially poor according to the federal government, a family of four can have a total annual income of no higher than:

a.  $22,350
b.  $31,700
c.  $42,000
d.  the salary of the governor of Wyoming.

You can find the rest of the questions and an answer sheet by going here: Blue Avocado Non-Profit Tax Quiz

Don’t forget that CDP is holding a Professional Development Series the morning of November 10, 2011.  One of the speakers is Jim Clark, a CPA with Lloyd, Darner, Guenther & Ellis and will be talking about accounting for non-profits.  Be sure to register for this training here.

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