December 14, 2017
End of Year Giving
One frequent question we receive during year-end is facilitating the giving received at the end of the year. There is generally an influx during this time of year and this can be an overwhelming and confusing topic, but Miller Management is here to help!
Year-End Gifts
We recommend paying very close attention to dates on checks, postmark dates, and transaction dates all-year long, but especially during this time of year. Similarly, we recommend making two separate deposits – one for 2024 giving and one for 2025 giving.
Per IRS Publication 526, contributions should be dated at the time of unconditional delivery. Guidelines for determining the year in which gifts should be recorded are as follows:
Checks/Cash: If received or postmarked on or before December 31, 2024 the donation should be recorded as a 2024 donation. The receipt of a check or date of the mailing is disregarded if the check itself is postdated.
For example, if a donor sends a check with a postmark of 12/31/2024, however the check is dated 1/1/2025, then the donation should be recorded in 2025.
Debit/Credit Cards: Contributions charged to a credit card are deductible by the donor when the charge is made and should be recorded in 2024 if charged on or before December 31st.
ACH/EFT: These types of internet donations are deductible to the donor at the time payment is withdrawn from the donor’s bank.
Contribution Statements
On a similar note, giving statements need to be sent out in a timely manner. In accordance with IRS guidelines, contribution statements must be distributed to your donors by January 31st, 2025, so they can be used in preparing individual tax returns.
We also recommend including the phrase, “No goods or services were provided (other than intangible religious benefits) in exchange for these donations.” on all statements. If your organization receives a donation that is considered a tangible benefit, it may not be included on this statement.
There are separate statements provided for “in-kind donations.” Contact your Miller Management representative to see how to correctly account for these gifts.
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