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Donation Quiz

To start the quiz, click the blue ‘Start’ button below.

74
Created on December 30, 2020

Donation Recording Quiz

This quiz will test a person's knowledge on recording various types of donations.

Your results are for personal use and only available to you.

1 / 10

Category: GIK - Or Non-cash donations

Question:

For gift in kind (non-cash) donations under $5,000.00, who determines the fair market value of the donation(s)? 

According to IRS publication 526, page 21, the non cash donation under 5,000.00 can be figured out by the tax advisor (CPA) or the donor themselves. Once the donation is over 5,000.00 a paid professional appraiser must be used and their written appraisal must be included with the donor's tax return.

2 / 10

Category: GIK - Or Non-cash donations

Question:

For gift in kind (non-cash) donations that are equal to or over $5,000.00, who determines the fair market value of the donation(s)? 

According to IRS publication 526, page 21, donations that are equal to or over $5,000.00, a paid professional appraiser must be used and their written appraisal must be included with the donor's tax return.

3 / 10

Category: Vehicle Donations

Question: 

Can a donor donate an airplane or a boat to a church?

The IRS Form 1098-C is what you use to for a qualified vehicle over 500.00.

4 / 10

Category: General Questions

Question:

For private mail carriers and in person donations what is the deadline date for donations in the current year?

In person and private mail carriers must have the donation physically delivered to the charity (the church) by December 31st. This is different than the USPS which the IRS is fine with using the postmarked date.

5 / 10

Category: General Questions

Question:

On a donor's statement, does each donation need a date next to it? See the example below.

  • 01/15/2022  $50.00
  • 01/30/2022  $25.00

According to IRS publication 1771 page 4, under the Recordkeeping Rules, subsection 'Requirement', the date and amount are both needed. While the IRS publication 1771 says the donor is responsible for this information, the church should have it on the donor statement so they can match it their records such as a bank record like a cancelled check or bank statement.

6 / 10

Category: General Questions

Question:

The donor makes two donations of $260.00. Can the donor claim the deduction using their own bank records?

As stated in the IRS publication 1771, the church must send a written acknowledgement (donor statement) to the donor for any one time contribution over $250.00.

7 / 10

Category: Vehicle Donations

Question:

Does the church or donor provide the claimed value of the vehicle, boat, or airplane over $500.00?

 

According to the IRS instructions for the 1098-C, the donor must figure out the amount for the donated item (ie car, plane, and boat). This is atypical because most gifts in kind (GIK) can be donated without knowing the value. Most GIK's don't require a 30 day reporting period.

8 / 10

Category: General Questions

Question:

Which of the following statements is not used on a donor's statement?

There are three different statements that the church can used depending on the circumstances of the donations. When these statements are not made the IRS can disallow the donation. See the court case in 2012 that dealt with this issue -- David and Veronda Durden v. Comm’r, TC Memo 2012-140 May 17, 2012.

  1. “No goods or services were provided by the church in return for the contribution.” Or
  2. “Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits.” Or
  3. “The amount of the contribution that is deductible for federal income tax purposes is limited to the excess of
    money (and the fair market value of any property other than money) contributed by the donor over the value of goods or services provided by the church.”

9 / 10

Category: GIK - Or Non-cash donations

Question:

What IRS form does the church have to fill out within 125 days, if they decide to sell or dispose of a non cash donation that is worth more than $5,000.00? 

The IRS form 8282 is to be filled out with 125 days of selling the property. The sold property has a three year limit on the reporting of it. Please review the form instructions for the 8282 to see all the requirements under the 'Who Must File' section.

10 / 10

Category: General Questions

Question:

The typical donation statement must display certain information on it. Please select three from the following list.

According to the IRS website there the information that must be on the statement is as follows. Keep in mind there are different types of donations but this questions did not look at non cash donations.
Name of the organization;

  • Amount of cash contribution;
  • Description (but not value) of non-cash contribution;
  • Statement that no goods or services were provided by the organization, if that is the case;
  • Description and good faith estimate of the value of goods or services, if any, that organization provided in return for the contribution; and
  • Statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.

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