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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: 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.

2 / 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.

3 / 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?

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.

4 / 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.

5 / 10

Category: General Questions

Question:

When donations are sent via the USPS (United States Postal Service) and not a private mail carrier, what is the latest date the postmark can show to include the donation on the donors statement?

The IRS's basic rule is that the gift must be delivered to the church by December 31st. For USPS they use the postmarked date as the delivery date, whether or not the donation envelope is physically delivered to the church.

6 / 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? 

Please review the IRS instructions for the IRS Form 1098-C to see who must file.

7 / 10

Category: Volunteer Time and Service

Question:

Can volunteers claim a tax deduction for their time and services provided to the church?

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.

8 / 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? 

According to the IRS website, non cash donations are not to have their value placed on the statement. Another resource is:

IRS Publication 561.

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.

9 / 10

Category: General Questions

Question:

Does the church have to provide a written acknowledgement for a single donation under $250.00?

10 / 10

Category: General Questions

Question:

The donor's total donations for the year are $550.50, does the church have to provide a written acknowledgement to the donor?

According to the IRS website donations that equal $250.00 or more need an written acknowledgement.

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