When donors make contributions near the end of the year, the question inevitably arises, “Is this gift deductible this year?” Hopefully this will help answer any questions you might have.

To qualify as a gift in a respected year, federal regulations require that checks must be dated on or before December 31 AND the envelope accompanying the check must be postmarked by December 31. The date the envelope is metered is NOT the same as the postmark date. For instance, if an envelope has a meter date of December 30, 2009, and a postmark date of January 2, 2010, then the transaction is recorded as a 2010 donation.

For hand-delivered checks, the date the check is received determines the year to record the donation in, unless the check is postdated.

A postdated check is a check that is dated in the future. A postdated check is not recognized as a donation until the date on the check. For example, suppose the church receives a check on December 30, 2009, but the check is dated January 1, 2010. In this instance, the donation is classified in 2010.

When receiving year-end donations, please be sure to use the above explanations when classifying donations. If we maintain your donor database, please be sure to let your bookkeeper know which calendar year the donation should be recorded in. Generally if the check is dated on or before December 31, 2009, we will assume it is a 2009 donation. However, if the postmarked date is AFTER December 31, please be sure to specify that on the copies of the checks / deposits that you send us.

As always, don’t hesitate to contact us if you have any questions.

Have a great Christmas!

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