Free Advice: When to Recognize a Gift as Received

By Lauren Geiger Moye, CFRE, Vice President New England West

As a basic rule, the official date of gift, used for tax purposes, is the day that the asset is transfered into the non-profit organization’s possession.

• For checks mailed, the date of the gift is the date postmarked. That is why it is recommended to review the envelope and stamp the check with the postmark date upon arrival.
• For checks or cash that are hand delivered, the date of gift is the date that the funds are received.
• In the case of credit card donations, the gift is complete at the time of the charge.

• The day the securities enter the organization’s account is the official date of gift.
• If the securities are hand delivered, the day that the non-profit or the broker receives the gift is the official date of gift.
• For securities sent by mail, the mailing date is the gift date.
• If a donor instructs a transfer agent to transfer securities to a non-profit, the gift is not completed until the securities are actually registered in the name of the non-profit. This can take several weeks, so if donors are trying to make the gift before year end, another method of transfer would be advisable.

• The official date of gift is the day the non-profit organization receives the signed deed.
• For other gifts of personal property such as vehicles, artwork, or jewelry, the gift date is the day that the non-profit receives the property, which should be accompanied by a signed document officially transferring the ownership.