If you were surprised to read about the ripple effect of a seemingly small change in the U.S. Postal Service regulations late last year, you were not alone. Here’s what you need to know, including potential remedies for your clients whose 2025 charitable deductions may be impacted by the rule change.

What’s the background with the IRS?

Under long-standing IRS guidance, a charitable contribution is generally considered “made” for tax purposes when the donor irrevocably parts with control of the gift. For contributions made by check and sent through the mail, the IRS has traditionally treated the date of the U.S. Postal Service postmark as the date of the gift, even if the charity receives the check later.

Okay, so if this is not an IRS issue, what happened?

In November 2025, the U.S. Postal Service (not the IRS) changed how postmarks are applied. Effective December 24, 2025, the official postmark date is now defined as the date of the first automated processing scan at a USPS processing facility, rather than the date a letter is dropped in a mailbox or handed to a clerk at a local post office. As a result, mail deposited on December 31, 2025 may not have actually received a postmark until several days later, especially around the holidays. This change took many people by surprise and created a lot of confusion, prompting the USPS to issue a “facts and myths” circular.

So what’s this got to do with the IRS?

Because the IRS’s practices continue to rely on the postmark to establish the date of a mailed charitable gift, this change can cause a contribution a client intended to deduct for 2025 to be treated as a 2026 contribution if the postmark reflects a January processing date.

If my client got caught up in this change, is the client totally out of luck for a 2025 charitable deduction?

Not necessarily. Remember, the underlying IRS rules governing charitable contribution timing have not changed. Publication 526 still requires your clients to “substantiate” or document the date of their gift, and the IRS continues to look at objective evidence to substantiate and determine when the contribution was made. What has changed is the ability to rely entirely on an ordinary envelope postmark as proof of a year-end gift.

Okay, it sounds like all is not lost. What should I do to help my client?

If a client was caught up in this rule change at the end of 2025, the first step is to gather and store any alternative proof that establishes when the gift was actually mailed. Documentation such as a USPS Certificate of Mailing, a certified or registered mail receipt, or a manually applied postmark or postage validation imprint obtained at the retail counter can help demonstrate that the donor sent the gift before yearend, even if the automated processing postmark is later. Even where the client has such postal documentation, concurrent records such as copies of the check, the client’s notes, and any correspondence with the charity should also be retained in the event the deduction is questioned. In other words, you may be able to build a case to support a client’s deduction for 2025.

What should clients do for 2026 and beyond?

Advisors should counsel clients on how to avoid this issue going forward. Donating earlier in the year or using electronic giving methods such as online donations, ACH or wire transfers, and completed transfers of publicly traded securities provide clearer and more immediate timestamps for deduction purposes.

How can the Community Foundation help?

Many clients find themselves rushing around at year-end to make charitable donations. The change in the postal rules is a terrific reason to remind a client that organizing charitable giving through a Donor Advised Fund at the Community Foundation allows the client to make a donation for tax purposes to the Donor Advised Fund well before the end of the year. This allows them to secure any applicable charitable deduction, and then recommend grants from the Donor Advised Fund anytime to favorite charities. Remember: the earlier, the better! If you have any questions, reach us at 410.280.1102 or info@cfaac.org.