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Fiscal Year End

  • 1.  Fiscal Year End

    Posted 30 days ago

    Has anyone ever heard of delaying revenue received? For example, we received a wire transfer in FY21 but leadership would like this counted towards FY22. Obviously per accounting standards we can't do this as funds were received in FY21, but have you ever had to adjust the fiscal year for a gift for internal reports as it pertains to our internal fiscal year goals?

    In addition, if we were to record the gift in FY21 but "count" it in FY22, this would cause significant misalignment with Accounting as well as cause issues with historical reporting moving forward.  Any insight would be helpful.



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    Monica Banea
    Gift Services Supervisor
    H. Lee Moffitt Cancer Center
    monica.banea@moffitt.org
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  • 2.  RE: Fiscal Year End

    Posted 30 days ago
    I was asked to do this once and said no.  They listened to me :-).  On the other hand, we had a formal policy that prohibited this.  We never back or future-dated anything.  And our rule was our processed date had to be the same as the deposit date (or within 24 hours) which was also the GL feed date.

    My guess is that this is a big gift and you already hit your goal for the year and someone wants to "seed" next year.  That's just wrong.  The gift was made and received this year.  Therefore it counts this year!

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Fiscal Year End

    Posted 30 days ago
    The only thing close to this was we allowed a donor to keep consecutive year giving as they forgot to give before fiscal year ended. They technically made 2 gifts in same fiscal year and the money was counted in that same year. So it was for stewardship only. 


    Tina Gorski-Strong
    Chief Advancement Officer
    Bancroft School





  • 4.  RE: Fiscal Year End

    Posted 30 days ago
    One way to handle this reverse scenario is to apply the current year's gift to a prior year's pledge and "count" satisfied pledges in your consecutive giving.  But for VSE and official fundraising totals, you can still count the cash in the year it is received!

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: Fiscal Year End

    Posted 9 days ago
    Hi, John,

    I know you have countless best practice guidelines on the fiscal and calendar year-end advancement procedures. I can't seem to find anything in the BP Library. Would you kindly point me in the right direction to where these are stored?  Your annual IRS Guidelines document is also one I refer to frequently.  Thank you!

    Martha

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    Martha Lauria
    Director of Development Operations
    NAACP Legal Defense and Educational Fund, Inc.
    martha.lauria@gmail.com
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  • 6.  RE: Fiscal Year End

    Posted 9 days ago
      |   view attached
    I do not recall a specific guideline on year-end processing.  Although, FundSvcs has had hundreds of discussions regarding how long institutions "hold the books open," backdating, and the like.  The John Taylor "rule" is that you close the books on the day the year ends. So there's no "holding open" for Advancement - unless the Business Office extends for a day or two.  And there's no backdating either.

    I know that my rule is not followed everywhere.  It's an institutional decision made in concert with the Business Office.  But I argue that keeping books open is robbing Peter to pay Paul.  The longer into the new year you hold the books open, the more you will take money away from the new year.  So you will start in a hole, and next year you end up wanting to hold the books open longer.

    Just draw a line in the sand!  And it seems to me that being in concert with the Business Office makes the most sense.

    As for my annual IRS end-of-year summary, here's the one I sent out last November.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





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