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Year-End Credit Card Gifts

  • 1.  Year-End Credit Card Gifts

    Posted 18 days ago
    ​Hi All,

    I was wondering how year-end credit card gifts are handled as far as those that are *gasp* mailed in with a postmark prior to 12/31/19 but do not arrive until Jan. 2020.  Do you enter the gift as a 2019 gift or as a 2020 gift - - when the card will be charged.  Some discussion has been brought up as to why would a credit card coming in through the mail be treated differently than a check that was received after the first of the year but post marked prior to the end of the year.  Can these credit card gifts received through the mail with a post mark in 2019 count as 2019 gifts?

    Thanks for your time and consideration.

    Julie

    ------------------------------
    Julie Kelley
    Gift Processing Manager
    The Citadel Foundation
    julie.kelley@CITADEL.EDU
    ------------------------------


  • 2.  RE: Year-End Credit Card Gifts

    Posted 18 days ago

    If it is a credit card gift, it counts when you process it.

     

     

    image001.png@01D18E89.6C83DD60

    Michael S. Dotson, PhD, bCRE-Pro

    Senior Director of Advancement Services

    Office of Advancement

    AUGUSTA UNIVERSITY

    1120 15th Street, FI-1045

    Augusta, GA 30912

    t: 706-721-0063

    f: 706-721-1641

     

    Help make  our data even better – send updates to ADVOPS@augusta.edu.

     

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  • 3.  RE: Year-End Credit Card Gifts

    Posted 18 days ago
      |   view attached
    Please see my annual Date of Gift paper in the Download Library and attached.  For credit cards, the legal date of the gift is the date you actually processed the card.

    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




    Attachment(s)



  • 4.  RE: Year-End Credit Card Gifts

    Posted 17 days ago

    As others have said, two donors can each fill out your reply device, put it in the mail prior to December 31st, and have it received after December 31st, except that one wrote a check and the other provided credit card information.  The donor who wrote a check has made a gift in the previous year, but the donor who provided credit card information did not, because a credit card gift is only considered complete when the charge is processed against the donor's account ("Contributions charged on your bank credit card are deductible in the year you make the charge.").

     

    This treatment (which is stated explicitly in IRS Publication 526, as quoted above and below) is an application of the general rule that a charitable contribution is made "at the time of its unconditional delivery."  Once the donor writes a check and puts it in the mail, the check, which is considered the instrument of the gift, is considered to be outside the donor's control (which is why delivery by other means is treated differently).  The application to the credit card gift is that the gift-the funds-have not been delivered to the donee until the charge is processed.

     

    This is similar to the treatment of stock gifts, where gifts of paper certificates are considered complete when the certificate and the stock power have been mailed to the charity, but electronic DT transfers are not complete until the shares are in the charity's account.  It has to do with when the actual gift has been delivered to the charity, rather than when instructions or authorization has been delivered to the charity.

     

    (Historically, this treatment of credit card gifts is an improvement over the older treatment of credit card gifts, which was that the gift wasn't complete until the donor paid off the charge by making their credit card account payment.)

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

    SNAGHTML5cbfa34                                                                                                                            

     

     






  • 5.  RE: Year-End Credit Card Gifts

    Posted 17 days ago
    Good morning,

    What about Universities that are closed on the 31st? Mail services is not open and the Advancement shop is closed. The donor intended the gift to be for 2019.

    Just throwing that out there.

    Thanks,
    Jolynn

    Jolynn Hall | Director of Special Projects and Gift Processing | University Advancement Operations

    UNC Charlotte | Foundation Building 106

    9201 University City Blvd | Charlotte, NC 28223

    Phone: 704-687-6159 | Fax: 704-687-7259

    jhall144@uncc.edu | www.uncc.edu







  • 6.  RE: Year-End Credit Card Gifts

    Posted 17 days ago
    This is why many organizations bring staff in on the 31st.  No processing; no gift.  Please read my paper.

    John Taylor
    919.816.5903

    Big ideas; small keyboard





  • 7.  RE: Year-End Credit Card Gifts

    Posted 17 days ago

    If the IRS accepts taxes that are mailed on April 15 (by mailed, "postmarked"), why can't we accept (and count) donations in the current calendar year if postmarked by/on Dec 31? That's how it's been done at every college or non-profit where I have worked. 

     

    Rose

     

    Semper Fi Fund

     

    www.semperfifund.org

    Rose Dixon

    Deputy | Development Operations | Semper Fi Fund

     

    M: 617.413.9537

    E: rose.dixon@semperfifund.org

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  • 8.  RE: Year-End Credit Card Gifts

    Posted 17 days ago

    You can, for checks.

     

    The tax return analogy is interesting.  When you put your tax return in the mail, your tax return is complete, and it's left your control-it's been unconditionally delivered.  If you owe taxes, and you include your check paying the taxes due, that check has also left your control.

     

    It's different for credit cards.  It's like what you put in the mail by April 15th was your instructions telling someone to submit your tax return.

     

    It's also worth noting that the IRS doesn't let you submit your returns by mailing your completed tax forms by April 15th along with information about charging your credit card for any balance due.

     

    If you submit your taxes electronically and have a balance due, you've only paid your taxes on time if the online process debits your bank account by the date that the taxes are due.  If your tax filing software gives you the option of a credit card payment (usually for an added fee), your taxes are only paid on time if your card is charged and the money is transferred to the IRS by the date that the taxes are due. 

     

    It's the same issue, really.  The credit card piece only counts when the card is actually charged.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

    SNAGHTML5cbfa34                                                                                                                            

     

     






  • 9.  RE: Year-End Credit Card Gifts

    Posted 17 days ago
    You need to read my paper.

    The primary difference with credit card payments is that the payment is not the donor's until the bank approves it.

    My paper explains further and cites other reliable sources.  It does not matter what other nonprofit organizations might do.  The law is the law.

    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