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 donations (ie non cash donations) should the value of the gift of kind donation be found on the donor's statement? Yes No 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: 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. 3 / 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? Yes No According to the IRS website donations that equal $250.00 or more need an written acknowledgement. 4 / 10 Category: General Questions Question: Which of the following statements is not used on a donor's statement? Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits. 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. No 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.” 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? 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. 6 / 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)? The church. The IRS. The donor's CPA or the donor. A professional appraiser. 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. 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)? 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. 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. 8 / 10 Category: General Questions Question: Does the church have to provide a written acknowledgement for a single donation under $250.00? No Yes 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 8282 IRS form W-3 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 donor makes two donations of $260.00. Can the donor claim the deduction using their own bank records? No Yes 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. Enter your email and name then click the finish flag to see your results! We will send you fun and infrequent information. 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