Accrued Corporate Charitable Pledges

Board approval alone does not complete the special accrual-basis corporate charitable-contribution election. The contribution must be authorized within the taxable year, paid within the prescribed post-year-end period and elected under the applicable procedure. A promise remaining unpaid beyond that period cannot automatically be deducted in the authorization year.

A specific business-owner situation

An accrual-basis C corporation approves a year-end donation but pays months later. The resolution date is one requirement, not the entire timing test.

Illustrative example, not a client result.

What to establish before filing

Verify accrual status and authorization date.
Confirm actual payment within the statutory period.
Make and substantiate the required return election.

Which fact changes the answer?

A timely paid authorized pledge differs from a later voluntary payment outside the special window. The exact dates change the deduction year.

A mistake to avoid

Do not treat an ordinary book accrual as a completed charitable payment election.

Records that support the decision

Board minutes.
Payment confirmation.
Election and return records.

The decision to document

Coordinate approval, payment and return preparation on one calendar rather than relying on the general accrual ledger.

Business-owner tax planning and preparation scope · Discuss advisory scope with AE

Sources and editorial context

General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.

Our C corp approved a charitable pledge before year-end but paid later. Is approval enough for a deduction?