Documenting Charitable Gifts

16 Questions | Total Attempts: 125

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Documenting Charitable Gifts

This quiz is part of the introductory curriculum for the graduate course Personal Financial Planning 5325 "Introduction to Charitable Planning" from Texas Tech University. For free downloads of the audio lectures and PowerPoint slides for this course, or to learn about the online Graduate Certificate in Charitable Financial Planning at Texas Tech University, go to www. EncourageGenerosity. Com


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Questions and Answers
  • 1. 
    Dorcas donates a $200 hand-made robe, in very good condition, to a local public charity’s thrift shop at an unattended clothing donation drop box.  Because the donation drop box is unattended, she is not able to receive any receipt or other written recognition from the charity.  Which statement is true?
    • A. 

      The gift cannot be deducted

    • B. 

      In order to deduct, she must somehow obtain a note from the charity indicating

    • C. 

      In order to deduct, she must somehow obtain a note from the charity indicating location & description of the property, the donor & the date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided

    • D. 

      In order to deduct, she only needs to have her own reliable records of value (and cost basis if relevant), charity, date & place of gift

    • E. 

      The gift is deductible without documentation as receiving a receipt was impractical

  • 2. 
    What are some potential negative outcomes from failing to obtain a qualified appraisal when deducting a gift of property worth more than $5,000?
    • A. 

      The IRS may choose to revalue the deduction at a lower level if it feels that the valuation claimed was not accurate

    • B. 

      The IRS may choose to allow a deduction only for the cost basis that was established by other reliable written records

    • C. 

      The IRS may disallow the entire deduction, regardless of the accuracy of the value claimed

    • D. 

      The IRS may charge a penalty for underpayment of taxes after disallowing the entire deduction

    • E. 

      All of the above

  • 3. 
    If an employee donates via payroll deduction such that he is giving $300 from each paycheck, how would he or she document the gift if the charitable contributions of employees are divided among many different charities and so there is no specific charity from which to get a receipt?
    • A. 

      The W-2 or paystub is sufficient

    • B. 

      The employee must write to each separate charity supported by the united

    • C. 

      A pledge card indicating that no goods or services are given in exchange for the gift, along with the W-2 or paystub is sufficient

    • D. 

      A cancelled check or credit card statement is sufficient

    • E. 

      These gifts may not be deducted

  • 4. 
      Ann O. Nemus receives a large collection of ancient coins known as Leptons from her husband’s estate.  She gives this collection, worth $510, to her local synagogue.   What items must she have in order to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      I

    • B. 

      I or II

    • C. 

      I or II or III

    • D. 

      I or II or III or IV

    • E. 

      III & IV

  • 5. 
      In which of the following cases would a donor need III, IV, V, and VIII in order to properly document a charitable gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      Donor donates nonpublicly traded stock valued at $600,000

    • B. 

      Donor donates publicly traded stock valued at $2,000,000

    • C. 

      A cash gift of $600,000 to a public charity

    • D. 

      Clothing in good condition valued at less than $400

    • E. 

      Donation of collectibles with a basis and fair market value of $4,000

  • 6. 
      Dorcas gives $2,000,000 in stock in Tabitha’s Textile Manufacturing Corporation, a publicly traded corporation, to a local poverty relief charity.  What items must she have in order to document the gift?  I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      III & IV

    • B. 

      III, IV, and V

    • C. 

      III, IV, V, and VII

    • D. 

      III & V

    • E. 

      III, IV, V, VII and VIII

  • 7. 
      James and John, joint owners as tenants in common of a fishing boat worth $11,000, give it to the local Boy Scouts of America.  What items must they have in order to document the gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      III & IV

    • B. 

      III, IV, V, and VI

    • C. 

      III, IV, and VI

    • D. 

      IV and VI

    • E. 

      III, IV, V, VI, and VII

  • 8. 
      Zebedee gives a small boat worth $400 to the local Boy Scouts of America to be used in their camping trips.  What items must he have in order to document the gift?  I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      III & IV

    • B. 

      III, IV, V, and VI

    • C. 

      III, IV, and VI

    • D. 

      IV and VI

    • E. 

      III, IV, V, VI, and VII

  • 9. 
      Jezebel purchases a vineyard at the estate sale of a deceased acquaintance named Naboth for $650,000.  She then donates the vineyard to the Society Against Public Defamation, a public charity.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      III

    • B. 

      III & IV

    • C. 

      III, IV, & V

    • D. 

      III, IV, V, & VI

    • E. 

      III, IV, V, & VIII

  • 10. 
      Herodias gives a slightly used silver platter, valued as artwork, to an art gallery for display in their collection.  She deducts $25,000 for her gift.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      III

    • B. 

      III & IV

    • C. 

      III, IV, & V

    • D. 

      III, IV, V, & VI

    • E. 

      III, IV, V, & VIII

  • 11. 
      Tamar gives an intricately carved walking staff with a fair market value of $1,100 to Planned Parenthood, a public charity.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      I

    • B. 

      III, IV & V

    • C. 

      III, IV, V & VI

    • D. 

      III

    • E. 

      IV

  • 12. 
    Mary gives $35,000 worth of pure nard (an expensive perfume) for use by a charitable organization providing burial services to needy families.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      I

    • B. 

      III, IV & V

    • C. 

      III, IV, V & VII

    • D. 

      III

    • E. 

      IV

  • 13. 
      Rahab purchases $400 worth of red ribbon for a community charity to use in children’s art projects.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      I

    • B. 

      III and IV

    • C. 

      III, IV, and V

    • D. 

      III

    • E. 

      IV

  • 14. 
      Mary donor makes a gift by check of $200 at the morning services of her church.  At the evening service on the same day she makes another gift by check of $200.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      I

    • B. 

      II

    • C. 

      III

    • D. 

      I or III

    • E. 

      Any of the above

  • 15. 
      Mary donor makes a cash gift of $300 to her local church.  What items would be sufficient to document this gift?I.      Cancelled check, bank statement, or credit card statement II.     Note from charity indicating amount (or location & description if property), donor & date III.    Note from charity indicating amount (or location & description if property), donor & date with statement either that “No goods or services were provided in exchange for these gifts” or description and value of items provided IV.     Donor’s own reliable records of value (and cost basis if relevant), charity, date & place of gift V.      IRS Form 8283 (Noncash Charitable Contributions) VI.     IRS Form 1098-C (Contributions of Motor Vehicles, Boats, & Airplanes) from charity 30 days after gift or sale VII.    A summary of a qualified appraisal attached to the tax return VIII.   A qualified appraisal attached to the tax return
    • A. 

      I or II

    • B. 

      III

    • C. 

      I and II

    • D. 

      I, II, and IV

    • E. 

      IV

  • 16. 
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