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: 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. 2 / 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? No Yes According to the IRS website donations that equal $250.00 or more need an written acknowledgement. 3 / 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 29th December 31st December 30th January 2nd 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. 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: 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 state income tax. 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. 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. 6 / 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? December 31st January 2nd January 1st December 30th 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. 7 / 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. 8 / 10 Category: General Questions Question: The typical donation statement must display certain information on it. Please select three from the following list. Name of Donor. Amount of donation for cash donations. The social security number of the donor. The church funds the donor donated to. A statement about goods and services. Name of Organization. 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: 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? 90 days 30 days January 31st the following year 60 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)." 10 / 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. 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.