I'm a church treasurer. A member has given a check for $10,000 for a building fund campaign and wants us to send him a receipt for $5,000 in 2007 and $5,000 in 2008. The donor obviously wants to take $5,000 for tax purposes in each of the two years. While I could set it up this way on the church records, I am thinking that the IRS would not allow this. Am I correct in this assumption?

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Originally Posted by harber32

I'm a church treasurer. A member has given a check for $10,000 for a building fund campaign and wants us to send him a receipt for $5,000 in 2007 and $5,000 in 2008. The donor obviously wants to take $5,000 for tax purposes in each of the two years. While I could set it up this way on the church records, I am thinking that the IRS would not allow this. Am I correct in this assumption?

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It does not seem to reflect the reality of the situation and it does not seem ethical to me.

Why doesn't he just donate $5,000 and promise the additional $5,000 for 2008?

The IRS deems charitable contributions to be made on a cash basis, not accrual. Your receipt should be for $10,000 for the year in which he made the donation.

Agree with TTE.

In fact, In my opinion, it is not only unethical but in fact illegal and may constitute aiding and abedding tax fraud.

Contact the donor and discuss him giving a $5,000 immediately (for 2007), then write a second $5,000 check the first Sunday in January 2008. Then all the legal niceties are met.