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. 54 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: 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. 2 / 10 Category: General Questions Question:For private mail carriers and in person donations what is the deadline date for donations in the current year? January 2nd December 29th December 30th December 31st 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. 3 / 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. 4 / 10 Category: Vehicle Donations Question: Can a donor donate an airplane or a boat to a church? Yes No The IRS Form 1098-C is what you use to for a qualified vehicle over 500.00. 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 $50.0001/30/2022 $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. 6 / 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. 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 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.” 7 / 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. 8 / 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 IRS. A professional appraiser. The donor's CPA or the donor. The church. 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. 9 / 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? IRS Form 1098-C IRS Form 8383 IRS form W-3 IRS Form 8282 Please review the IRS instructions for the IRS Form 1098-C to see who must file. 10 / 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 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. 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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