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| | A Message from Atul Tandon |
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Don't Wait Until the Last Minute to be Ready For Those Who Wait Until the Last Minute
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The year-end deadline for donations is fast approaching. An always-significant number of donors will wait until the almost literal last minute to make their final contributions for the year. While you may wish that wasn't the case, it is. So the most effective thing you can do is make it easy to receive those gifts.
To be last-minute-ready, challenge yourself by answering these questions (so your United Way doesn't miss out):
- Is my United Way's home webpage updated?
- Is the "donate" button easy to find on the webpage?
- Are the office phones covered at all times during the holiday season?
- Is there someone in the office prepared to handle donations, i.e. stock gifts?
- Does my work email direct people to someone else if I'm out?
Larger United Ways may not have these challenges. But for smaller ones with very few people, this list is imperative. Most United Ways experienced a drop in campaign dollars, and although year-end gifts won't replace that deficit, they will prevent it from increasing. Are you last-minute-ready?
-Atul
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The REAL Year-End Deadline
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As the end of the year draws near, resource development activities tend to jump into high speed. Holiday appeals, drives across finish lines, end of year tax planning, whatever the activity you are engaged in everything seems to matter just a little more with December 31st looming ever nearer.
In the midst of it all, "bean counters" like me get asked one question without fail..."How do we decide if a gift is counted in this year or the next?" When it comes down to it, there are specific tax rules around this question but there is also a bit of flexibility to those rules in order to assure that practical considerations rule the day. So, in the spirit of the holiday season, I would like to offer my resource development colleagues two quick tips for working with your finance counterparts.
Tip #1 - IRS Rules are not as unreasonable as they may seem: To be eligible for tax deduction in the current year, the IRS regulations state that a donor must make his/her contribution in the current calendar year. One might think this means that the gift must be physically at the UW office by midnight December 31 or it doesn't count for this year. However, if you look at this a little deeper you notice that the regulation isn't quite that restrictive because it simply says that the contribution must be "made" in the current year. Thus, the real issue is at what point has the donor "made" his/her contribution.
Here, what is most important is being able to make a reasonable case for possession. So, would the gift be considered "made" if the donor drops off a check to a UW staff member at the local tavern, after the office closed for the day? Answer, maybe! The check was obviously not in the possession of the donor at midnight on the 31st and it was in the possession of a UW staff member so you could make a logical case for the donation having been made on time. Problem is, trying to make that case after the fact, often looks too much like you are trying to "bend' the rules to fit the circumstances.
Tip #2 - The post mark is worth its weight in gold: The IRS regulations state that if a contribution is made via the US mail, the contribution is considered to have been made at the time that it is deposited with the US Postal service to deliver to the organization. From a strict technical standpoint this means that if they get to the post office before midnight on the 31st (and the post office is still open that late to post mark it), then regardless of how long it takes for the postal service to actually deliver the contribution to the organization, it is still considered to have been contributed on time.
The common problem here is that the Finance folks simply can't wait forever for those checks to arrive in the mail... remember, while the RD folks may be measured by how much they bring in during the year, the finance folks are often measured by how quickly after the last day of the month they can deliver the financial statement. As a result, most of us have policies in place that indicate that any contribution postmarked by 12/31 and received at the UW office by ____ days after the end of the year, are posted to the prior year.
These are just two quick thoughts about many aspects of year end giving that as RD folks you really ought to know. Don't be afraid to get "close" with the finance folks, because truth be told, deep down inside every one of us pencil neck geeks is a nerd who really wants to help everyone succeed.
Happy holidays! Read full article.
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United Way Worldwide Public Policy staff has been supporting the efforts of the Independent Sector (IS) on the IRA Rollover issue. The IS policy folks have posted an update to keep you informed.
In addition to the IS summary, Congress returned on Monday, November 15th for the first day of the lame duck session* and is expected to be in session until Friday, November 19th when they will adjourn for Thanksgiving. We expect them to return after Thanksgiving on Monday, November 29th and continue working another week or two, before adjourning for the year. The only bill Congress must pass during the lame duck is a spending bill to keep the government and programs operating. Everything else is up in the air.
IS, UWW and others have been and will continue to press Congress to address the IRA Rollover matter this year but nothing is certain with so many variables in play during the lame duck. Besides the must pass spending bill, Congressional leaders have also discussed possibly taking up legislation to address the following issues: extension of Bush tax cuts, DREAM Act, card check (labor unions), child nutrition reauthorization, extenders bill, don't ask don't tell, and food safety. The most recent version of the extender's bill, written by Senator Baucus, has a one year extension of the IRA Rollover in it but as stated earlier, there are no guarantees that bill will be voted during the lame duck. We will keep you posted.
*Lame duck session occurs whenever one Congress meets after its successor is elected, but before the successor's term begins.
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A Gift to Them is A Gift to Us
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The year 2010 is coming to an end and we know that many of our donors are looking for ways to support their favorite charities, but also wanting a charitable deduction. A lot of our donors know what the charitable gift annuity (CGA) is and how it provides life-time payments while also providing a gift to United Way. But, if you've found it difficult to get your donors to support your planned giving efforts via a CGA, then mention how it can be a great gift to a friend or relative, especially for the holiday season.
 Charitable Gift Annuity for a Loved One
If your donors don't know they can fund a charitable gift annuity for someone other than themselves or a spouse, now is a great time to let them know.
Donors can choose to have annuity payments go to someone else, like an elderly parent on a fixed income, a sibling that may need some financial assistance, or even a friend that has fallen on hard times. Just as if the donor were receiving the payments, the annuitant would receive a life-time payment amount based on their age and amount of the gift and when they pass away, the residuum goes to the United Way of choice. What's great for the donor is...although they don't receive the annuity payments, they receive the charitable deduction.
We all should concentrate on the real benefits the CGA provides and present them to our donors in an understandable and appealing way. These options can honor and benefit loved ones while accomplishing an important charitable mission for the donor. So, before the year ends, let your donors know about this great gift option that allows them to give a special holiday gift to someone they love and support the charity they love as well.
United Way Worldwide has the National Charitable Gift Annuity Program with free membership for all United Ways. Click here to view a CGA brochure.
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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.
--Franklin D. Roosevelt | |
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