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. 74 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 (non-cash) donations under $5,000.00, who determines the fair market value of the donation(s)? The donor's CPA or the donor. The church. The IRS. A professional appraiser. 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. 2 / 10 Category: GIK - Or Non-cash donations Question: For gift in kind (non-cash) donations that are equal to or over $5,000.00, who determines the fair market value of the donation(s)? A professional appraiser. The church. The IRS. The donor's CPA or the donor. According to IRS publication 526, page 21, donations that are equal to or over $5,000.00, a paid professional appraiser must be used and their written appraisal must be included with the donor's tax return. 3 / 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. 4 / 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 31st December 30th 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. 5 / 10 Category: General Questions Question: On a donor's statement, does each donation need a date next to it? See the example below. 01/15/2022 $50.00 01/30/2022 $25.00 No Yes According to IRS publication 1771 page 4, under the Recordkeeping Rules, subsection 'Requirement', the date and amount are both needed. While the IRS publication 1771 says the donor is responsible for this information, the church should have it on the donor statement so they can match it their records such as a bank record like a cancelled check or bank statement. 6 / 10 Category: General Questions Question: The donor makes two donations of $260.00. Can the donor claim the deduction using their own bank records? Yes No As stated in the IRS publication 1771, the church must send a written acknowledgement (donor statement) to the donor for any one time contribution over $250.00. 7 / 10 Category: Vehicle Donations Question: Does the church or donor provide the claimed value of the vehicle, boat, or airplane over $500.00? Donor Church 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: 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. Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits. 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. 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.” 9 / 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. 10 / 10 Category: General Questions Question: The typical donation statement must display certain information on it. Please select three from the following list. Name of Organization. The social security number of the donor. Name of Donor. Amount of donation for cash donations. A statement about goods and services. The church funds the donor donated to. 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. 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.