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. 73 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: Vehicle Donations Question: Does the church or donor provide the claimed value of the vehicle, boat, or airplane over $500.00? Church Donor 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. 2 / 10 Category: General Questions Question: Which of the following statements is not used on a donor's statement? No goods or services were provided by the church in return for the contribution. Only goods or services were provided by the church in return for the contribution. 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. Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits. 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.” According to the IRS website a written acknowledgement is needed for a contribution over $250.00. The exact wording is "A donor claiming a deduction of $250 or more is also required to obtain and keep a contemporaneous written acknowledgment for a charitable contribution ." For a single donation under $250.00 the donor can provide their own records to prove the donation -- ie like bank records, credit card receipts. Or the church can provide the written acknowledgement but they are not mandatory to do so. Keep in mind if there are multiple donations that total to $250.00 or more, then the church must do a written acknowledgement of all the donations and the dates of them. 3 / 10 Category: General Questions Question: Does the church have to provide a written acknowledgement for a single donation under $250.00? Yes No 4 / 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? No Yes 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. 5 / 10 Category: Vehicle Donations Question: Can a donor donate an airplane or a boat to a church? No Yes The IRS Form 1098-C is what you use to for a qualified vehicle over 500.00. 6 / 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? 30 days 60 days January 31st the following year 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)." 7 / 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 IRS. The donor's CPA or the donor. 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. 8 / 10 Category: General Questions Question: The typical donation statement must display certain information on it. Please select three from the following list. The church funds the donor donated to. Name of Donor. Name of Organization. Amount of donation for cash donations. 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. 9 / 10 Category: GIK - Or Non-cash donations Question: When a donor donates stock to the church, which they held for more than a year, what tax benefit does the donor receive? The donor does not pay the stock income tax. The donor does not pay the capital gains tax. The donor does not pay ordinary federal income tax. The donor does not pay state income tax. When stocks are donated directly to the church instead of cash, the donor does not pay any 'capital gains tax' on the stocks. If the stocks appreciated a lot and the donor is in a top tax bracket, this translates to a 37% tax savings as of tax year 2020. And all the stock appreciation goes to the church. Avoiding the capital gains tax only works on stocks that are owned for at least one year. Keep in mind the more the church can advise donors on their giving options and how they benefit the donor the more the church could receive in donations. 10 / 10 Category: Volunteer Time and Service Question: Can volunteers claim a tax deduction for their time and services provided to the church? Yes No A volunteer can't deduct their time and services. However an attorney can ask for a GIK donation statement for things like travel expenses for the attorney to come and meet with your organization. Or say for all the cost of mailings to your organization. In other words the expenses have to be documented and not just a 'service' or 'time'. There are a lot of rules on this that the churches should review before giving out any donation statements to any volunteers. Enter your email and name then click the finish flag to see your results! We will send you fun and infrequent information. NameEmail Your score is LinkedIn Facebook VKontakte 0% Restart quiz Exit This quiz can be shared with others with the proper given attribution to the creator Icon Systems, commonly called the CC BY license.