Documentation & Reporting Flashcards

A qualified appraisal for a non-cash charitable contribution must be completed no later than:

Answer: The due date (with extensions) of the tax return claiming the deduction

The qualified appraisal must be made no earlier than 60 days before the contribution and no later than the due date (including extensions) of the tax return on which the deduction is claimed.

What is the IRS definition of a 'qualified appraiser' for purposes of a non-cash charitable contribution deduction?

Answer: An individual with verifiable education and experience in valuing the type of property being appraised who is not the donor or donee

A qualified appraiser must have verifiable education and experience valuing the specific type of property, hold themselves out as an appraiser, and cannot be the donor, the donee, or a party to the transaction.

A private foundation's Form 990-PF is due:

Answer: The 15th day of the 5th month following the close of the tax year

Form 990-PF is due by the 15th day of the 5th month after the close of the foundation's tax year (typically May 15 for calendar-year foundations), with an automatic 6-month extension available.

Which disclosure is required on a solicitation where a portion of the payment is NOT tax-deductible due to goods or services received?

Answer: A quid pro quo disclosure stating the deductible portion and the fair market value of goods/services

For quid pro quo contributions exceeding $75, the organization must provide a written statement disclosing that only the amount exceeding the fair market value of the benefit is deductible, and state the FMV.

What distinguishes expenditure responsibility grants by private foundations from equivalency determination grants?

Answer: Expenditure responsibility requires pre-grant inquiry, written grant agreement, grantee reporting, and foundation follow-up; equivalency determination requires a legal opinion that the grantee qualifies as a public charity equivalent

Expenditure responsibility involves ongoing monitoring with a pre-grant inquiry, grant agreement, grantee reports, and the foundation's own reporting on Form 990-PF; equivalency determination relies on a legal opinion that the foreign organization would qualify as a U.S. public charity.

A donor gifts publicly traded stock held for 18 months to a public charity. Which documentation is required?

Answer: A broker confirmation of the transfer and a written acknowledgment from the charity

Gifts of publicly traded securities do not require a qualified appraisal regardless of value; the donor needs a written acknowledgment from the charity and typically a broker confirmation showing the shares transferred.

Under the substantiation rules, a charity's written acknowledgment for a non-cash contribution must include:

Answer: A description (but not the value) of the property contributed and a statement of whether goods or services were provided

The charity's acknowledgment for non-cash gifts must describe the donated property but is not required to state its value; determining value is the donor's responsibility, typically through appraisal.