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Donation Quiz

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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: 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?

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.

2 / 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.

3 / 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.

4 / 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.

5 / 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.

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?

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: 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.

8 / 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.

9 / 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.

10 / 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.

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