Magnifying GlassGet a free trial of IconCMO now! 30 days – No credit card required. Donation Quiz To start the quiz, click the blue ‘Start’ button below. 75 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: 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? IRS From 8283 IRS Form 8383 IRS form W-3 IRS Form 8282 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. 2 / 10 Category: Quid Pro Quo Question: The church charges $100.00 for a fall festival dinner. The meal is valued at $30.00 and the donation is $70.00. Does the church need to provide a written acknowledgement for the $70.00 donation? Yes No This question falls under a quid pro quo donation. These are found in the IRS code section 6115. 3 / 10 Category: General Questions Question: The typical donation statement must display certain information on it. Please select three from the following list. Amount of donation for cash donations. The church funds the donor donated to. Name of Organization. Name of Donor. The social security number of the donor. A statement about goods and services. 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. 4 / 10 Category: Vehicle Donations Question: Generally speaking, how many days after a vehicle donation greater than $500.00 does the church have to furnish the donor with the IRS form 1098-C? 60 days January 31st the following year 30 days 90 days The IRS instructions for the IRS Form 1098-C states the following: "Generally, the charity must furnish this form to you no later than 30 days after the date it sold the donated vehicle (if box 4a is checked) or 30 days after the date of the contribution (if box 5a or 5b is checked)." 5 / 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)? A professional appraiser. The donor's CPA or the donor. The IRS. The church. 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. 6 / 10 Category: GIK - Or Non-cash donations Question: When donating stock to the church that you have owned for more than one year, does the church record the value on the donor's statement? Yes No According to the IRS website, non cash donations are not to have their value placed on the statement. Another resource is: IRS Publication 561. 7 / 10 Category: Vehicle Donations Question: When a vehicle is donated that is claimed to have a value of more than $500.00, what IRS form must the church fill out? IRS form W-3 IRS Form 8282 IRS Form 1098-C IRS Form 8383 Please review the IRS instructions for the IRS Form 1098-C to see who must file. 8 / 10 Category: GIK - Or Non-cash donations Question: For gift in kind donations (ie non cash donations) should the value of the gift of kind donation be found on the donor's statement? Yes No According to IRS publication 1771, the value is never placed on the donor's statement - ie the written acknowledgment. This is the instructions about the information that should be on the donor's statement. 1. the name of organization 2. the amount of cash contribution, 3. a description (but not the value) of non-cash contribution, 4. a statement that no goods or services were provided by the organization in return for the contribution, if that was the case, 5. a description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution, 6. a statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case. 9 / 10 Category: General Questions Question: Which of the following statements is not used on a donor's statement? 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. No goods or services were provided by the church in return for the contribution. Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits. Only goods or services were provided by the church in return for the contribution. 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. “No goods or services were provided by the church in return for the contribution.” Or “Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits.” Or “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.” 10 / 10 Category: General Questions Question: For private mail carriers and in person donations what is the deadline date for donations in the current year? December 30th December 31st January 2nd December 29th 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. 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