The last bit of advice you need this year: the Mailbox Rule

As the year winds down, one detail matters more than almost anything else for donors rushing to make a gift: When does it count?

For nonprofits, understanding the Mailbox Rule—and where it does not apply—is essential for accurate gift entry, donor trust, and smooth year-end reporting.

First: What the Mailbox Rule actually covers

The Mailbox Rule applies only to gifts a donor mails directly to your organization—primarily:

• Personal checks 

• Business checks
  

For these gifts, the donation date is the postmark date.

If it’s postmarked December 31, it’s a last-year gift—even if it arrives in January.

If it’s postmarked January 1 or later, even with a December date written on the check, it counts for the new year.

This rule recognizes when the donor placed the gift beyond their control by handing it to the postal system.

What follows a different set of rules

Many gifts look like “mail” to donors but don’t follow the Mailbox Rule at all. Their timelines are completely separate because the donor is not physically sending you the gift.

Let’s break down the major categories.

Credit Cards

Credit card gifts are not governed by the Mailbox Rule. Gift date is the day the card is actually charged.

This is one reason it’s so important to open your mail before COB on December 31 or the closest working day to December 31. If a credit card slip is returned by mail (you know, like someone actually wrote their credit card number down and mailed it in for you to process), it must be processed by 11:59pm for it to count for the current year.

It’s worth noting, too, that if a donor hits “submit” on an online gift at 11:59 p.m. on December 31, it only counts if your processor completes the transaction before midnight.

Donor-Advised Funds (DAFs)

For DAFs, the date the DAF sponsoring organization processes the donor’s request.

A donor might click “recommend a grant” on December 31, but if Fidelity, Schwab, or a community foundation processes it on January 3, it’s a January gift.

Mailbox Rule does not apply—no matter how many envelopes are or are not involved. And since there really aren’t any required distributions from DAFs, this really isn’t something to be worried about.

Stock & Securities

For stocks and other securities, the gift date the assets transfer into your organization’s control.

This timing depends on broker processing and market settlement. Transfers can take days, especially in late December. Initiation date is irrelevant; transfer is the key.

QCDs (Qualified Charitable Distributions)

Gift date for QCDs is the date funds leave the donor’s IRA custodian.

Even if the custodian mails you a physical check, the Mailbox Rule does not apply. The IRS looks at the distribution date, not the postmark.

This is the category that causes the most confusion for donors who mistakenly think “mailed check = Mailbox Rule.”

Not so with QCDs.

Why the distinction matters

Each gift type has its own legal timeline. Mixing them up creates problems:

• Donors may lose deductibility for the year they intended.

• Nonprofits may unintentionally miscode gifts in their CRM.

• January can turn into a month of fix-it emails and amended tax receipts.
  

Clear communication now prevents frustration later.

How to help donors finish the year confidently

Keep guidance simple and visible:

• For checks: remind donors the postmark controls.

• For credit cards: emphasize submitting early enough to ensure same-year processing.

• For DAFs, stock, and QCDs: encourage initiating gifts well before December so their custodians have time to act.

• Train your team to record gift dates based on the correct rules for each gift type—not a one-size-fits-all approach.

Your donors want to get this right, and your clarity helps them do it.

When these distinctions are handled well, you protect trust, reduce January chaos, and start the new year with a clean slate. If you want to tighten up your year-end gift entry systems or donor messaging, this is exactly the kind of practical support I love helping nonprofits with.