Practice Test Geeks(CAP) Certified Philanthropic Advisor Practice Test
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Documentation & Reporting Flashcards

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  1. Which IRS form must a donor obtain from a charity to deduct a cash contribution of $250 or more?

    Answer: Written contemporaneous acknowledgment letter

    For cash gifts of $250 or more, donors must obtain a written contemporaneous acknowledgment from the charity stating the amount and whether any goods or services were provided in exchange.

  2. A donor contributes a painting valued at $15,000 to a museum. Which additional form must the donor file with their tax return?

    Answer: Form 8283 Section B

    Non-cash contributions over $5,000 (other than publicly traded securities) require a qualified appraisal and IRS Form 8283 Section B, signed by an appraiser.

  3. What is the maximum number of years a private foundation must retain records related to grants and expenditures?

    Answer: 7 years

    Private foundations generally must retain records for at least 7 years after the period to which they relate, consistent with IRS audit statutes.

  4. A charity receives a $500 donation and gives the donor a $50 dinner in return. What amount must the acknowledgment letter state as the deductible portion?

    Answer: $450

    The acknowledgment must disclose the fair market value of goods or services received; the deductible quid pro quo amount is $500 minus the $50 FMV of the dinner, equaling $450.

  5. Which document must accompany IRS Form 8283 Section B for a non-cash gift exceeding $5,000?

    Answer: A qualified appraisal prepared by a qualified appraiser

    A qualified appraisal conducted by a qualified appraiser no earlier than 60 days before the donation and no later than the tax return due date must accompany Form 8283 Section B.

  6. Under IRS rules, a contemporaneous written acknowledgment for a charitable gift must be received by the donor by:

    Answer: The earlier of the date the return is filed or the return due date including extensions

    The acknowledgment must be obtained by the donor by the earlier of the date the tax return is filed or the due date (including extensions) of the return for the year of the contribution.

  7. A donor-advised fund sponsor must provide donors with written acknowledgment that the DAF has:

    Answer: Exclusive legal control over the contributed assets

    DAF sponsors must acknowledge that the sponsoring organization has exclusive legal control over contributed assets, which is a key characteristic distinguishing DAFs from private foundations.