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Donation Quiz

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Created on December 30, 2020 By Icon Systems

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 (non-cash) donations that are equal to or over $5,000.00, who determines the fair market value of the donation(s)? 

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.

2 / 10

Category: Vehicle Donations

Question: 

Can a donor donate an airplane or a boat to a church?

The IRS Form 1098-C is what you use to for a qualified vehicle over 500.00.

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.

3 / 10

Category: General Questions

Question:

Does the church have to provide a written acknowledgement for a single donation under $250.00?

4 / 10

Category: Volunteer Time and Service

Question:

Can volunteers claim a tax deduction for their time and services provided to the church?

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.

5 / 10

Category: Vehicle Donations

Question:

Does the church or donor provide the claimed value of the vehicle, boat, or airplane over $500.00?

 

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.

6 / 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?

According to the IRS website donations that equal $250.00 or more need an written acknowledgement.

7 / 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?

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.

8 / 10

Category: General Questions

Question:

For private mail carriers and in person donations what is the deadline date for donations in the current year?

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.

9 / 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?

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.

10 / 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?

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)."

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