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. 44 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 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 the capital gains tax. The donor does not pay ordinary federal income tax. The donor does not pay state income tax. The donor does not pay the stock 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. 2 / 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. 3 / 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. 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 organization2. 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 thecontribution, if that was the case,5. a description and good faith estimate of the value of goods or services, if any, that anorganization 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: 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. No goods or services were provided by the church in return for the contribution. 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. 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 ofmoney (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.” 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? 90 days 30 days 60 days January 31st the following year 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: General Questions Question:On a donor's statement, does each donation need a date next to it? See the example below.01/15/2022 $50.0001/30/2022 $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. 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? January 1st December 30th December 31st January 2nd 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: 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. A professional appraiser. The donor's CPA or the donor. The IRS. 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. 10 / 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. 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 Twitter 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.