Just got a call that most every church bookkeeper receives most every year. At issue: how do I figure out in which period to post contributions received at year-end?
Answer: charitable contributions must be applied to the year in which they are delivered. One exception is when the check is mailed: it is applied to the year the check is mailed (and postmarked!), even if received early the next year.
Remember, this is an issue because the donor wants to claim the contribution as a charitable deduction for income tax purposes. The donor must relinquish control of the funds before it is technically a contribution. So if the donor has not mailed it by year-end, no matter what date is on the check, he/she hasn't really given up control. Or so the IRS says. AND, the IRS also states that a mailed contribution must have been postmarked on or before December 31st - that proves that control is given up by the end of the year.
See the exact wording of the Dept of Treasury's official interpretation of the Internal Revenue Code on this subject:
http.//edocket.access.gpo.gov/cfr_2007/aprqtr/pdf/26cfr1.170A-1.pdf
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