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. 39 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? 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. 2 / 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 January 2nd 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. 3 / 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. 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. 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.” 4 / 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. 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: 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. 7 / 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? No Yes According to the IRS website donations that equal $250.00 or more need an written acknowledgement. 8 / 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. The donor's CPA or the donor. A professional appraiser. The church. 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. 9 / 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. 10 / 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 Form 8282 IRS form W-3 IRS Form 8383 IRS From 8283 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. 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.