- - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                            TO:  Interested Ministries                                                                                                              FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                                                          FILE:  0023-01/all

                             RE:  Year End (Calendar) Donation Issues                                                                             Originated:  November 1989                

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    Questions continue to arise concerning timing of calendar year end tax deductible contributions, or donations, made to Tax Exempt Ministries. Our understanding of IRS regulations is that in order for a contribution to be deductible for the calendar year ended 12/31/xxx0, the following would apply ---

•   The Ministry must have received the money physically by 12/31/xxx0.

•   Or, if mailed, it must be an action by the donor so that the transmission envelope would be post-marked no later than 12/31/xxx0.

•   Or, a Ministry agent must have physically received the money by or before 12/31/xxx0.

    Those of us that deal with this annually know that Ministries process checks dated 12/31/xxx0 well into the following month of January xxx1 and the Ministry needs to handle these items in a consistent righteous manner.
    It is our view that the above regulations can be moderated within the context of the following:

•   Often the Post Office does not function well during the last few days of the calendar year and mail might NOT be processed as timely as usual. Since the intent of the regulations are NOT being violated, it is OK to process as xxx0 donations all checks dated 12/31/xxx0, and post marked on or before 12/31/xxx0, but received during the first four business days in January xxx1.

•   A constituent calls the Ministry prior to 12/31/xxx0 and indicates that they want a xxx0 tax deduction, and informs the Ministry that money is coming --- though the mail is not post-marked by or before 12/31/xxx0 -- as long as it complies with the above intent.

    The above should be well documented for all individual donations as evidenced by your 12/31/xxx0 contribution receipt and/or annual giving statements
    Further, your written financial policies should include these issues.
    There may be merit in making this policy known to constituents early in December of each year.

CAUTION!!!!!

    NO WAY does the foregoing apply when it is obvious that a donor is attempting to get a calendar year xxx0 deduction for a calendar year xxx1 decision and action!!

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      The bulk of this Publication originated in November 1989  and was  UPTD: May 02, 2008  

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      (1) An Online Document, or WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
       (2) WRIT formats include the perspective of  Jim@bcidot.org  via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and FAQ, response to Frequently Asked Questions

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