Get a free trial of IconCMO now! 30 days - No credit card required. Donation Quiz To start the quiz, click the blue ‘Start’ button below. 26 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: 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 8282 IRS form W-3 Please review the IRS instructions for the IRS Form 1098-C to see who must file. 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? Yes No According to the IRS website donations that equal $250.00 or more need an written acknowledgement. 3 / 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? No Yes This question falls under a quid pro quo donation. These are found in the IRS code section 6115. 4 / 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. 5 / 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. 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: 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. 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. 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. Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits. 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.” 9 / 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 IRS. A professional appraiser. The church. The donor's CPA or the donor. 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. 10 / 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 1st December 30th 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. Enter your email and name then click the finish flag to see your results!We will send you fun and infrequent information. Your score is LinkedIn Facebook Twitter 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.