CGMS Practice Exam ACTUAL EXAM
2026/2027 | CGMS Certified Global
Meeting Specialist | Verified Q&A | Pass
Guaranteed - A+ Graded
Section 1: Gift Types & Vehicles
Q1: A donor contributes $5,000 in cash to a qualified public charity. What is the deductible amount for
the donor, assuming they itemize and have sufficient AGI?
A. The donor may deduct 30% of their AGI.
B. The donor may deduct the full amount of the contribution, up to 60% of their AGI. [CORRECT]
C. The donor may deduct the full amount, up to 50% of their AGI.
D. The donor may deduct the full amount, up to 30% of their AGI.
Correct Answer: B
Rationale: Under current IRS rules (IRC Section 170(b)), cash contributions to public charities are
deductible up to 60% of the donor's Adjusted Gross Income (AGI). The 50% limit was the standard
previously but was raised to 60% (and temporarily 100% for 2020-2021, though the 60% rule is the
permanent baseline for 2026/2027). The 30% limit applies to gifts of capital gain property to public
charities or gifts to private foundations.
Q2: A donor wants to gift a painting valued at $100,000 to a museum. The museum plans to sell the
painting to fund an exhibition. The donor purchased the painting 10 years ago for $10,000. What is the
donor's charitable deduction?
A. $100,000 (Fair Market Value).
B. $10,000 (Cost Basis). [CORRECT]
C. $50,000 (Average of basis and FMV).
,D. $0, as art is not a deductible gift.
Correct Answer: B
Rationale: For gifts of tangible personal property (like art), if the property is "unrelated use" (the charity
sells it rather than using it in its mission), the deduction is limited to the donor's cost basis. If the
museum were using the painting for its collection (related use), the deduction would be Fair Market
Value. Since they intend to sell it, the deduction is limited to basis.
Q3: Which of the following is considered the most liquid asset for a donor to contribute?
A. Real Estate.
B. Closely Held Stock.
C. Cash. [CORRECT]
D. Tangible Personal Property.
Correct Answer: C
Rationale: Cash is the most liquid asset, requiring no appraisal, no market analysis, and no transfer of
title. Real estate, closely held stock, and tangible personal property all require valuation, potential
environmental audits (real estate), or marketability assessments, making them complex and illiquid
compared to cash.
Q4: A donor contributes shares of publicly traded stock to a public charity. The stock was held for more
than one year and has appreciated in value. What is the tax treatment of this gift?
A. The donor deducts the cost basis and pays capital gains tax on the appreciation.
B. The donor deducts the fair market value (FMV) and avoids capital gains tax on the appreciation.
[CORRECT]
C. The donor deducts the fair market value but must pay capital gains tax on the appreciation.
D. The donor deducts the cost basis and avoids capital gains tax.
Correct Answer: B
Rationale: Donors who contribute long-term capital gain property (held >1 year) to a public charity can
generally deduct the full fair market value and avoid recognizing the capital gain. This is a "double
benefit" of giving appreciated assets.
,Q5: A donor gifts a piece of real estate to a charity. The property has a mortgage of $200,000 attached
to it. What is the potential tax consequence for the donor?
A. The donor receives a deduction for the full FMV of the property.
B. The donor must recognize the mortgage amount as a "bargain sale" gain. [CORRECT]
C. The charity is responsible for the mortgage.
D. The gift is disallowed because encumbered property cannot be donated.
Correct Answer: B
Rationale: If a donor contributes property subject to debt (like a mortgage), the IRS treats it partially as a
sale. The donor is treated as having sold the property to the extent of the debt relief. Therefore, the
donor may have to recognize capital gain up to the amount of the mortgage ($200,000), reducing the
tax efficiency of the gift.
Q6: What is the primary requirement for a donor to deduct a charitable contribution of $250 or more?
A. A canceled check is sufficient proof.
B. A written acknowledgment from the charity stating whether goods or services were provided.
[CORRECT]
C. A note on the donor's tax return.
D. An appraisal summary (Form 8283).
Correct Answer: B
Rationale: Per IRC Section 170(f)(8), for gifts of $250 or more, the donor must have a contemporaneous
written acknowledgment (CWA) from the charity. This acknowledgment must state the amount of
cash/value of property contributed and whether the charity provided any goods or services in return.
Q7: Which of the following gifts generally requires a "qualified appraisal" to be submitted with the
donor's tax return (Form 8283)?
A. A gift of $5,000 in cash.
B. A gift of publicly traded stock valued at $15,000.
C. A gift of a collection of rare books valued at $12,000. [CORRECT]
, D. A gift of a used automobile valued at $4,000.
Correct Answer: C
Rationale: A qualified appraisal is required for non-cash gifts (other than publicly traded securities)
valued at over $5,000. Publicly traded securities have a readily determinable market value (daily
quotes), so they are exempt from the appraisal requirement. Rare books (non-publicly traded property)
exceeding $5,000 trigger the requirement.
Q8: A donor contributes their entire interest in a vacation home to a land conservancy. The home is not
the donor's primary residence. What is the deduction limitation?
A. 60% of AGI.
B. 30% of AGI. [CORRECT]
C. 50% of AGI.
D. 100% of AGI.
Correct Answer: B
Rationale: Contributions of capital gain property (like real estate) to public charities are generally limited
to 30% of the donor's AGI. While cash is 60%, appreciated property falls under the 30% limitation (unless
the donor elects to reduce the deduction by the appreciation to get the 50% cash-equivalent limit, but
the standard rule for FMV deduction is 30%).
Q9: A donor gives a gift of closely held stock (Subchapter S corporation) to a public charity. What is a
unique consideration for the charity regarding this gift?
A. The charity cannot accept S-corp stock.
B. The charity may be subject to Unrelated Business Income Tax (UBIT) on the S-corp's earnings.
[CORRECT]
C. The donor cannot deduct the value of the stock.
D. The stock must be sold back to the corporation immediately.
Correct Answer: B
Rationale: Unlike standard C-corp stock, income from S-corp stock passed through to a tax-exempt
charity may be subject to Unrelated Business Income Tax (UBIT). Charities must weigh this potential tax
liability against the benefit of the gift.
2026/2027 | CGMS Certified Global
Meeting Specialist | Verified Q&A | Pass
Guaranteed - A+ Graded
Section 1: Gift Types & Vehicles
Q1: A donor contributes $5,000 in cash to a qualified public charity. What is the deductible amount for
the donor, assuming they itemize and have sufficient AGI?
A. The donor may deduct 30% of their AGI.
B. The donor may deduct the full amount of the contribution, up to 60% of their AGI. [CORRECT]
C. The donor may deduct the full amount, up to 50% of their AGI.
D. The donor may deduct the full amount, up to 30% of their AGI.
Correct Answer: B
Rationale: Under current IRS rules (IRC Section 170(b)), cash contributions to public charities are
deductible up to 60% of the donor's Adjusted Gross Income (AGI). The 50% limit was the standard
previously but was raised to 60% (and temporarily 100% for 2020-2021, though the 60% rule is the
permanent baseline for 2026/2027). The 30% limit applies to gifts of capital gain property to public
charities or gifts to private foundations.
Q2: A donor wants to gift a painting valued at $100,000 to a museum. The museum plans to sell the
painting to fund an exhibition. The donor purchased the painting 10 years ago for $10,000. What is the
donor's charitable deduction?
A. $100,000 (Fair Market Value).
B. $10,000 (Cost Basis). [CORRECT]
C. $50,000 (Average of basis and FMV).
,D. $0, as art is not a deductible gift.
Correct Answer: B
Rationale: For gifts of tangible personal property (like art), if the property is "unrelated use" (the charity
sells it rather than using it in its mission), the deduction is limited to the donor's cost basis. If the
museum were using the painting for its collection (related use), the deduction would be Fair Market
Value. Since they intend to sell it, the deduction is limited to basis.
Q3: Which of the following is considered the most liquid asset for a donor to contribute?
A. Real Estate.
B. Closely Held Stock.
C. Cash. [CORRECT]
D. Tangible Personal Property.
Correct Answer: C
Rationale: Cash is the most liquid asset, requiring no appraisal, no market analysis, and no transfer of
title. Real estate, closely held stock, and tangible personal property all require valuation, potential
environmental audits (real estate), or marketability assessments, making them complex and illiquid
compared to cash.
Q4: A donor contributes shares of publicly traded stock to a public charity. The stock was held for more
than one year and has appreciated in value. What is the tax treatment of this gift?
A. The donor deducts the cost basis and pays capital gains tax on the appreciation.
B. The donor deducts the fair market value (FMV) and avoids capital gains tax on the appreciation.
[CORRECT]
C. The donor deducts the fair market value but must pay capital gains tax on the appreciation.
D. The donor deducts the cost basis and avoids capital gains tax.
Correct Answer: B
Rationale: Donors who contribute long-term capital gain property (held >1 year) to a public charity can
generally deduct the full fair market value and avoid recognizing the capital gain. This is a "double
benefit" of giving appreciated assets.
,Q5: A donor gifts a piece of real estate to a charity. The property has a mortgage of $200,000 attached
to it. What is the potential tax consequence for the donor?
A. The donor receives a deduction for the full FMV of the property.
B. The donor must recognize the mortgage amount as a "bargain sale" gain. [CORRECT]
C. The charity is responsible for the mortgage.
D. The gift is disallowed because encumbered property cannot be donated.
Correct Answer: B
Rationale: If a donor contributes property subject to debt (like a mortgage), the IRS treats it partially as a
sale. The donor is treated as having sold the property to the extent of the debt relief. Therefore, the
donor may have to recognize capital gain up to the amount of the mortgage ($200,000), reducing the
tax efficiency of the gift.
Q6: What is the primary requirement for a donor to deduct a charitable contribution of $250 or more?
A. A canceled check is sufficient proof.
B. A written acknowledgment from the charity stating whether goods or services were provided.
[CORRECT]
C. A note on the donor's tax return.
D. An appraisal summary (Form 8283).
Correct Answer: B
Rationale: Per IRC Section 170(f)(8), for gifts of $250 or more, the donor must have a contemporaneous
written acknowledgment (CWA) from the charity. This acknowledgment must state the amount of
cash/value of property contributed and whether the charity provided any goods or services in return.
Q7: Which of the following gifts generally requires a "qualified appraisal" to be submitted with the
donor's tax return (Form 8283)?
A. A gift of $5,000 in cash.
B. A gift of publicly traded stock valued at $15,000.
C. A gift of a collection of rare books valued at $12,000. [CORRECT]
, D. A gift of a used automobile valued at $4,000.
Correct Answer: C
Rationale: A qualified appraisal is required for non-cash gifts (other than publicly traded securities)
valued at over $5,000. Publicly traded securities have a readily determinable market value (daily
quotes), so they are exempt from the appraisal requirement. Rare books (non-publicly traded property)
exceeding $5,000 trigger the requirement.
Q8: A donor contributes their entire interest in a vacation home to a land conservancy. The home is not
the donor's primary residence. What is the deduction limitation?
A. 60% of AGI.
B. 30% of AGI. [CORRECT]
C. 50% of AGI.
D. 100% of AGI.
Correct Answer: B
Rationale: Contributions of capital gain property (like real estate) to public charities are generally limited
to 30% of the donor's AGI. While cash is 60%, appreciated property falls under the 30% limitation (unless
the donor elects to reduce the deduction by the appreciation to get the 50% cash-equivalent limit, but
the standard rule for FMV deduction is 30%).
Q9: A donor gives a gift of closely held stock (Subchapter S corporation) to a public charity. What is a
unique consideration for the charity regarding this gift?
A. The charity cannot accept S-corp stock.
B. The charity may be subject to Unrelated Business Income Tax (UBIT) on the S-corp's earnings.
[CORRECT]
C. The donor cannot deduct the value of the stock.
D. The stock must be sold back to the corporation immediately.
Correct Answer: B
Rationale: Unlike standard C-corp stock, income from S-corp stock passed through to a tax-exempt
charity may be subject to Unrelated Business Income Tax (UBIT). Charities must weigh this potential tax
liability against the benefit of the gift.
