I am interested in how schools determine cutoffs for gifts at fiscal year end, that is, how long past the end of the month gifts are input with the month-end date and whether the date on the check or the postmark is considered the gift date.

So, let's say your fiscal year ends on May 31, and you have not started entering June gifts yet. On June 4, you receive a gift dated 5/31 in an envelope postmarked 5/31 and you receive a gift dated 5/31 in an envelope postmarked 6/3.

We would put the first in as a 5/31 gift. What about the second--do you say it is a 5/31 gift or go by the postmark and hold it out until June?

Our fiscal year is closing, so prompt responses are appreciated.

[DrewAllen]

According to IRS regulations, it is the date that the donor releases control of the gift. Since I can put any date I want on the check, or I can hold my check for some time, the date on the check is not permissible. The postmark is permissible, because it is a valid indicator that the donor has released control of the gift.

Our finance office determines how long they want to keep the books for the fiscal year open. Anything eligible that comes in before that date is put into the previous fiscal year.

Drew

[sagespot]

Below is our policy. I loved adding that last part, as I used to get asked to move the date of checks all the time. Now everyone wonders if I'll report them for even asking - it saves me a ton of time and headaches just to get it out in print right away.

Year-End Tax Deduction Gifts (December 31st) and Fiscal Year End Gifts (June 30th):

• In order to meet school deadlines for closing the books for each fiscal year, Credit cards must be received in the Business Office by 4:00 pm on June 30th/December 3st (or last business day) of each calendar/fiscal year.
• Gifts received by mail must be postmarked on or before December 31st/June 30th. The date on the check is irrelevant. Attach the envelope, check (or stock certificate,) and any correspondence and deliver to the Advancement Department or Business Office.
• Hand-delivered gifts (or credit card gifts called in by the donor) received on or before December 31st/June 3th must be received by school on or before December 31st/June 30th. If delivery by December 31st/June 3th is not possible, then the person receiving the gift must sign a short memo indicating date, time, and place the gift was received. This memo must be attached to the check.
• Advancement will file this documentation.

Please do not compromise the integrity of the Advancement Department or Business Office staff by asking them to post a gift with a year-end date in the absence of appropriate documentation.

Quote:

If delivery by December 31st/June 3th is not possible, then the person receiving the gift must sign a short memo indicating date, time, and place the gift was received. This memo must be attached to the check.

In this case, do you input the gift with a date of Dec. 31/June 3 even though it it wasn't received by then?

Thanks.

[sagespot]

That is correct. It takes the memo for the auditors to allow the business office to enter that date, so we use it as well.

Would anyone put a credit card through on, say, July5, and input it as a June 30 gift if the donor wanted the gift to count for FY08 but did not want credit card charged until July 5?

[Melissa Siobhan]

We would not as it is against our gift dating policy (posted in the sample documents). We use postmarks on checks and cash but because the IRS uses the date the card was charged - so do we.

[DrewAllen]

Quote:

Originally Posted by adjmc

Would anyone put a credit card through on, say, July5, and input it as a June 30 gift if the donor wanted the gift to count for FY08 but did not want credit card charged until July 5?

Quote:

Originally Posted by Melissa Siobhan

We would not as it is against our gift dating policy (posted in the sample documents). We use postmarks on checks and cash but because the IRS uses the date the card was charged - so do we.

I agree with Melissa.

Depending on your policies and procedures, you could put up a pledge as June 30 and then swipe the card on July 5 and apply that credit card gift to the pledge.

In my experience, most people aren't even aware of what our FY is, and are not concerned with getting in their gift before the end of the fiscal year. They're much more worried about the calendar year end rather than the fiscal year end. Unfortunately, you can only count the pledge for donor recognition purposes, you have to count the actual gift for tax purposes.

Drew