This quiz will test a person's knowledge on recording various types of donations.

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.

1. “No goods or services were provided by the church in return for the contribution.” Or
2. “Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits.” Or
3. “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.”

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

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.

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.

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.

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.

According to the IRS website, non cash donations are not to have their value placed on the statement. Another resource is:

IRS Publication 561.

Please review the IRS instructions for the IRS Form 1098-C to see who must file.

This question falls under a quid pro quo donation. These are found in the IRS code section 6115.