2024 Contribution Rec'd 11/30/23

[tfitch]

Hello!

I

Received a check in 11/2023. They would like the to apply it as a contribution/pledge for 2024 for tax purposes. Received their pledge card for 2024 and entered.

If I deposit the check with a 2023 date and ensure that I select 1/1/24 - 12/31/24 for the pledge period, will that still show as income in 2023? I assume it would, but.... If it does, will it also show on their 2023 contribution statement?

I am I better off holding the check until 2024?

Or date make the deposit date 1/1/2024 even though it was actually deposited in 2023?

Both of those options seem strange, but they want it to be a 2024 pledge.

Thank you,

Maurice

[NeilZ]

Hello!

I

Received a check in 11/2023. They would like the to apply it as a contribution/pledge for 2024 for tax purposes. Received their pledge card for 2024 and entered.

If I deposit the check with a 2023 date and ensure that I select 1/1/24 - 12/31/24 for the pledge period, will that still show as income in 2023? I assume it would, but.... If it does, will it also show on their 2023 contribution statement?

I am I better off holding the check until 2024?

Or date make the deposit date 1/1/2024 even though it was actually deposited in 2023?

Both of those options seem strange, but they want it to be a 2024 pledge.

Thank you,

Maurice

FWIW ... you can accept the funds, and on the pledge record in Powerchurch, add those funds as a pledge 'start balance' for 2024. HOWEVER, they will be shown on the 2023 Contributions Report, and shown as 2023 income. The IRS is VERY strict on this. Funds received as charitable donations are to be shown on a tax deduction source document (Contribution Report) in the year they are deposited, no ifs, ands, or buts. You don't want to fake the dates as that would cause the church to be liable and complicit in tax fraud.

You can hold the check until Jan 1st, and then deposit it. It will then cover the pledge, as well as show as 2024 income, and on their contribution report as of that month.

If they have a problem with that, tell them to talk to a good accountant.

[tfitch]

Neil,
Thank you for responding!
I knew that was the answer.
I'll let the person know about depositing in 2023 and it showing on their contribution statement.

Thanks again!