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Failed 12/31 credit card

  • 1.  Failed 12/31 credit card

    Posted 21 days ago
    If a donor tried to run their credit card on 12/31 but payment was stopped from going through as a security measure, is the donor able to have the card rerun for 2021 tax credit? I recall discussions around this years ago about failed attempts and the possibility of using the original run date as the tax credit date but I'm sure things may have changed.

    ------------------------------
    Jessica Baker
    Director, Data Quality, Gift Processing, Strategy
    University of Texas at Austin
    jbaker@austin.utexas.edu
    ------------------------------


  • 2.  RE: Failed 12/31 credit card

    Posted 21 days ago
    The answer is no.  For a credit card donation to be valid and tax-deductible in a certain year, the charge must be approved in that 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: Failed 12/31 credit card

    Posted 21 days ago

    Thanks, John.

     

    Regards,

    Jessica Baker |  Director for Data Quality, Gift Processing and Strategy

    512-232-1729 | jbaker@austin.utexas.edu

     






  • 4.  RE: Failed 12/31 credit card

    Posted 20 days ago

    I was just having this discussion with someone. 

     

    To me, this is the same for credit card gifts (not processed – no approval code) that have been put in a mailbox.  The person I spoke with believes that when a credit card number is written on an appeal device and put in the USPS box, the date of the gift is the postmarked date on the envelope.  I say the date of gift is when the credit card is charged & approved. 

     

    Thoughts?

     

    Best regards,

     

    Tracy

     






  • 5.  RE: Failed 12/31 credit card

    Posted 20 days ago
    The IRS states that the date of gift is when the charge is approved.  Remember, until then there is no actionable transaction as the bank must approve the charge - unlike writing a check which is illegal to do if you do not have sufficient funds.

    Please see the date of gift email I sent out on December 1!

    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







  • 6.  RE: Failed 12/31 credit card

    Posted 20 days ago

    Thanks, John.  It was friendly debate, but I knew I was correct.  I always refer to my mentor – John Taylor!

     

    Best regards,

     

    Tracy

     






  • 7.  RE: Failed 12/31 credit card

    Posted 20 days ago
    You are too generous - and you are always right!

    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







  • 8.  RE: Failed 12/31 credit card

    Posted 20 days ago
    Tracy, I think you are correct. The rule for checks is that the day they are put in the mail they are considered paid, from the donor's perspective. In part this is because a check is viewed as an actual payment. Sure, they may bounce, but intentionally bouncing a check is illegal. The general idea is that a check represents actual funds in your possession that you're transferring. A credit card, on the other hand, is asking someone else to loan you the money and pay on your behalf. Simply giving over the payment information is not sufficient to make the transaction happen - the charge has to be approved.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 9.  RE: Failed 12/31 credit card

    Posted 20 days ago

    That's a great way to explain this, Isaac.  Many thanks!

     

    Best regards,

     

    Tracy