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You are being given incredibly wrong information. Per IRS Publication 1771 your receipt should have a description only. And never an actual sales amount. Determining the FMV of the item donated for tax purposes is between the donor and the IRS. Indeed, when selling a donated item at a charity auction the FMV must be clearly stated so that donors bidding know what they are bidding on - and can claim any amount paid over that amount as a gift (provided they are given a QPQ receipt). But for in-kind donations and all property gifts (including securities), the receipt should only have a description. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, Sep 4, 2019 at 1:08 PM Steve <steve0155@sbcglobal.net> wrote: > Good afternoon all, > > > > We are preparing gift in-kind acknowledgements for an upcoming event and I > need some input regarding the detail that is included to the donor of the > item itself. > > > > I am being told that the acknowledgement letter to the donor of the item > must include the FMV AND the amount of the winning bid. This in addition > to the description of the item as provided by the donor. > > > > For example, a letter to the donor of a Ladies 18 karat yellow god oval > shape green jade and diamond ring would include the description as provided > and the declared value of $350.00 and the purchased price of $175.00. > > > > For that item the donor said that she was told by her accountant that the > purchase price was needed to help determine how much she could deduct for > taxes. The FMV that she provided wasn’t sufficient. > > > > Need advice and counsel on how to proceed with this. > > > > Steve Walsh > > > > *Stephen R. Walsh, bCRE-Pro* > > *Development Database Manager * > > The Province of St. Joseph of the Capuchin Order > > 1820 Mt. Elliott Street - Detroit, MI 48207 > > 313.579.2100 ext. 1208 (o) > > swalsh@thecapuchins.org > > Twitter: @TheCapuchins > > Facebook.com/TheCapuchins > > http://www.thecapuchins.org > > Capuchin Franciscan Province of St. Joseph > > Inspired by the gospel of Jesus and the example of Francis of Assisi, the > Capuchin friars of the Province of St.... > <http://www.thecapuchins.org/> > > > > >

Good afternoon all,   We are preparing gift in-kind acknowledgements for anupcoming event and I need some input regarding the detail that is included tothe donor of the item itself.   I am being told that the acknowledgement letter to the donorof the item must include the FMV AND the amount of the winning bid.  Thisin addition to the description of the item as provided by the donor.   For example, a letter to the donor of a Ladies 18 karatyellow god oval shape green jade and diamond ring would include the descriptionas provided and the declared value of $350.00 and the purchased price of$175.00.   For that item the donor said that she was told by heraccountant that the purchase price was needed to help determine how much shecould deduct for taxes.  The FMV that she provided wasn’t sufficient.   Need advice and counsel on how to proceed with this.   Steve Walsh   Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org | | | | Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St.... | | |  

Steve: I'll let our right honorable friend John Taylor give the final answer to this as he is an expert on the subject. But if I remember correctly when the university I then worked for had an auction we did include both the purchase price and the FMV on the tax receipt. It was our way of saying, "Yes, you purchased the item for $X, but the fair market value of the item is $Y". As far as I know that wasn't actually required by the IRS, but it did seem to work for our donors. Thanks, Greg Gregory Duke, D.Phil, bCRE-PRO Staupell Analytics greg@staupell.com http://www.staupell.com Ph. (716) 946-1870 Twitter: GregoryEDuke [cid:3aa01fa8-44d4-4956-b6f8-b6800d87c965] ________________________________ From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of Steve <steve0155@SBCGLOBAL.NET> Sent: Wednesday, September 4, 2019 4:08 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] In-kind Gift Acknowledgement Good afternoon all, We are preparing gift in-kind acknowledgements for an upcoming event and I need some input regarding the detail that is included to the donor of the item itself. I am being told that the acknowledgement letter to the donor of the item must include the FMV AND the amount of the winning bid. This in addition to the description of the item as provided by the donor. For example, a letter to the donor of a Ladies 18 karat yellow god oval shape green jade and diamond ring would include the description as provided and the declared value of $350.00 and the purchased price of $175.00. For that item the donor said that she was told by her accountant that the purchase price was needed to help determine how much she could deduct for taxes. The FMV that she provided wasn’t sufficient. Need advice and counsel on how to proceed with this. Steve Walsh Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org<mailto:swalsh@thecapuchins.org> Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.thecapuchins.org_&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=984RMR36hPmikF7s6oK6Uepf5oMP3Utjjovi7kvUZbE&m=hUbes8IpTRX7PcScOqemsmtWW6_aKQ-6sVfp3v2NFPY&s=fl-QxJiqtMJSRgpmh_sBSfd9twY101m7Ws6xME-Uc1I&e=> <https://urldefense.proofpoint.com/v2/url?u=http-3A__www.thecapuchins.org_&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=984RMR36hPmikF7s6oK6Uepf5oMP3Utjjovi7kvUZbE&m=hUbes8IpTRX7PcScOqemsmtWW6_aKQ-6sVfp3v2NFPY&s=fl-QxJiqtMJSRgpmh_sBSfd9twY101m7Ws6xME-Uc1I&e=> Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St....

Hmmm. I read the question as referring to the written acknowledgment provided to the donor who contributed the item to be auctioned, rather that the written acknowledgment provided to the donor who purchased the item at the charitable auction. Auctions are complicated because there are those two transactions, and they're different sorts of transactions so they follow different rules. The donor of an item to be sold at auction is making a straight non-cash/property gift, so the written acknowledgment would provide only a description of the property contributed, in enough detail so that any subsequent audit could adequately identify the item. And, in the case of personal property donated for a charitable auction, the donor's deduction (which is the donor's responsibility to determine, in any case), would be limited to the lower of the item's fair market value (FMV) and the donor's basis in the item (generally whatever the donor paid to acquire it, which is usually lower). What the item might have sold for at the auction wouldn't have any bearing on the matter and would be irrelevant to the donor of the property (at least for tax purposes). The only reason that we ask the donor of property for a charitable auction for the value of the property in the first place is not to reflect it back on the receipt to the donor of the property but rather because we need the value so that we can tell the potential bidder the value of the item, so that the bidder can decide whether they want to bid more than the item is worth, which establishes their intent to make a charitable contribution by making their winning bid of an amount greater than the item's value. So we would need to tell the winning bidder the value of the item (if they paid more than the value of the item) , so that they would know how much of their payment would be deductible. My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 *: 202-633-8754 | *: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Gregory Duke Sent: Wednesday, September 4, 2019 4:28 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] In-kind Gift Acknowledgement Steve: I'll let our right honorable friend John Taylor give the final answer to this as he is an expert on the subject. But if I remember correctly when the university I then worked for had an auction we did include both the purchase price and the FMV on the tax receipt. It was our way of saying, "Yes, you purchased the item for $X, but the fair market value of the item is $Y". As far as I know that wasn't actually required by the IRS, but it did seem to work for our donors. Thanks, Greg Gregory Duke, D.Phil, bCRE-PRO Staupell Analytics greg@staupell.com<mailto:greg@staupell.com> http://www.staupell.com<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.staupell.com&data=02%7C01%7CHejnalA%40SI.EDU%7C9cbb9b39b34c48084c8208d73176631c%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637032256862352990&sdata=XM96Liu6XqOPomou4gaZ6jcm7UROWEwchu9u21F1MJg%3D&reserved=0> Ph. (716) 946-1870 Twitter: GregoryEDuke [cid:image004.png@01D56340.5DA74E00] ________________________________ From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> on behalf of Steve <steve0155@SBCGLOBAL.NET<mailto:steve0155@SBCGLOBAL.NET>> Sent: Wednesday, September 4, 2019 4:08 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> Subject: [FUNDSVCS] In-kind Gift Acknowledgement Good afternoon all, We are preparing gift in-kind acknowledgements for an upcoming event and I need some input regarding the detail that is included to the donor of the item itself. I am being told that the acknowledgement letter to the donor of the item must include the FMV AND the amount of the winning bid. This in addition to the description of the item as provided by the donor. For example, a letter to the donor of a Ladies 18 karat yellow god oval shape green jade and diamond ring would include the description as provided and the declared value of $350.00 and the purchased price of $175.00. For that item the donor said that she was told by her accountant that the purchase price was needed to help determine how much she could deduct for taxes. The FMV that she provided wasn't sufficient. Need advice and counsel on how to proceed with this. Steve Walsh Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org<mailto:swalsh@thecapuchins.org> Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.thecapuchins.org%2F&data=02%7C01%7CHejnalA%40SI.EDU%7C9cbb9b39b34c48084c8208d73176631c%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637032256862362986&sdata=RG85up7vuupIlZDYP7gupTbRU2VEEYVR8JW%2FZSsjhz4%3D&reserved=0> Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St....

See page 4 of the publication under Written Acknowledgement, item #4: ”a description (but not the value) of non-cash contribution” John John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Sep 5, 2019, at 6:13 AM, Steve <steve0155@sbcglobal.net> wrote: > > John, > > Thanks. > > That's what I thought but needed backup as it's been a while since I've dealt with this issue. > > Quick question though. I read 1771 and saw the example of an acknowledgement for a gift in-kind with the description of the item but didn't see where the charity was restricted to description only by the IRS, though I might have missed it. Is there somewhere else that you can direct me? > > Steve Walsh > > On Wednesday, September 4, 2019, 04:41:07 PM EDT, John Taylor <johntaylorconsulting@GMAIL.COM> wrote: > > > You are being given incredibly wrong information. Per IRS Publication 1771 your receipt should have a description only. And never an actual sales amount. Determining the FMV of the item donated for tax purposes is between the donor and the IRS. > > Indeed, when selling a donated item at a charity auction the FMV must be clearly stated so that donors bidding know what they are bidding on - and can claim any amount paid over that amount as a gift (provided they are given a QPQ receipt). > > But for in-kind donations and all property gifts (including securities), the receipt should only have a description. > > John > > John H. Taylor > Principal > John H. Taylor Consulting, LLC > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, Sep 4, 2019 at 1:08 PM Steve <steve0155@sbcglobal.net> wrote: > Good afternoon all, > > > > We are preparing gift in-kind acknowledgements for an upcoming event and I need some input regarding the detail that is included to the donor of the item itself. > > > > I am being told that the acknowledgement letter to the donor of the item must include the FMV AND the amount of the winning bid. This in addition to the description of the item as provided by the donor. > > > > For example, a letter to the donor of a Ladies 18 karat yellow god oval shape green jade and diamond ring would include the description as provided and the declared value of $350.00 and the purchased price of $175.00. > > > > For that item the donor said that she was told by her accountant that the purchase price was needed to help determine how much she could deduct for taxes. The FMV that she provided wasn’t sufficient. > > > > Need advice and counsel on how to proceed with this. > > > > Steve Walsh > > > > Stephen R. Walsh, bCRE-Pro > > Development Database Manager > > The Province of St. Joseph of the Capuchin Order > > 1820 Mt. Elliott Street - Detroit, MI 48207 > > 313.579.2100 ext. 1208 (o) > > swalsh@thecapuchins.org > > Twitter: @TheCapuchins > > Facebook.com/TheCapuchins > > http://www.thecapuchins.org > > > Capuchin Franciscan Province of St. Joseph > Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St.... > > > > >

John, Thanks. That's what I thought but needed backup as it's been a while since I've dealt with this issue. Quick question though.  I read 1771 and saw the example of an acknowledgement for a gift in-kind with the description of the item but didn't see where the charity was restricted to description only by the IRS, though I might have missed it.  Is there somewhere else that you can direct me? Steve Walsh On Wednesday, September 4, 2019, 04:41:07 PM EDT, John Taylor <johntaylorconsulting@GMAIL.COM> wrote: You are being given incredibly wrong information.  Per IRS Publication 1771 your receipt should have a description only.  And never an actual sales amount.  Determining the FMV of the item donated for tax purposes is between the donor and the IRS. Indeed, when selling a donated item at a charity auction the FMV must be clearly stated so that donors bidding know what they are bidding on - and can claim any amount paid over that amount as a gift (provided they are given a QPQ receipt). But for in-kind donations and all property gifts (including securities), the receipt should only have a description. John John H. TaylorPrincipalJohn H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC   27705johntaylorconsulting@gmail.com919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, Sep 4, 2019 at 1:08 PM Steve <steve0155@sbcglobal.net> wrote: Good afternoon all,   We are preparing gift in-kind acknowledgements for anupcoming event and I need some input regarding the detail that is included tothe donor of the item itself.   I am being told that the acknowledgement letter to the donorof the item must include the FMV AND the amount of the winning bid.  Thisin addition to the description of the item as provided by the donor.   For example, a letter to the donor of a Ladies 18 karatyellow god oval shape green jade and diamond ring would include the descriptionas provided and the declared value of $350.00 and the purchased price of$175.00.   For that item the donor said that she was told by heraccountant that the purchase price was needed to help determine how much shecould deduct for taxes.  The FMV that she provided wasn’t sufficient.   Need advice and counsel on how to proceed with this.   Steve Walsh   Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org | | | | Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St.... | | |  

Thanks John.  I obviously missed that.  Steve On Thursday, September 5, 2019, 09:19:21 AM EDT, John Taylor <johntaylorconsulting@GMAIL.COM> wrote: See page 4 of the publication under Written Acknowledgement, item #4: ”a description (but not the value) of non-cash contribution” John John Taylor919.816.5903johntaylorconsulting@gmail.com Big ideas; small keyboard On Sep 5, 2019, at 6:13 AM, Steve <steve0155@sbcglobal.net> wrote: John, Thanks. That's what I thought but needed backup as it's been a while since I've dealt with this issue. Quick question though.  I read 1771 and saw the example of an acknowledgement for a gift in-kind with the description of the item but didn't see where the charity was restricted to description only by the IRS, though I might have missed it.  Is there somewhere else that you can direct me? Steve Walsh On Wednesday, September 4, 2019, 04:41:07 PM EDT, John Taylor <johntaylorconsulting@GMAIL.COM> wrote: You are being given incredibly wrong information.  Per IRS Publication 1771 your receipt should have a description only.  And never an actual sales amount.  Determining the FMV of the item donated for tax purposes is between the donor and the IRS. Indeed, when selling a donated item at a charity auction the FMV must be clearly stated so that donors bidding know what they are bidding on - and can claim any amount paid over that amount as a gift (provided they are given a QPQ receipt). But for in-kind donations and all property gifts (including securities), the receipt should only have a description. John John H. TaylorPrincipalJohn H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC   27705johntaylorconsulting@gmail.com919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, Sep 4, 2019 at 1:08 PM Steve <steve0155@sbcglobal.net> wrote: Good afternoon all,   We are preparing gift in-kind acknowledgements for anupcoming event and I need some input regarding the detail that is included tothe donor of the item itself.   I am being told that the acknowledgement letter to the donorof the item must include the FMV AND the amount of the winning bid.  Thisin addition to the description of the item as provided by the donor.   For example, a letter to the donor of a Ladies 18 karatyellow god oval shape green jade and diamond ring would include the descriptionas provided and the declared value of $350.00 and the purchased price of$175.00.   For that item the donor said that she was told by heraccountant that the purchase price was needed to help determine how much shecould deduct for taxes.  The FMV that she provided wasn’t sufficient.   Need advice and counsel on how to proceed with this.   Steve Walsh   Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org | | | | Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St.... | | |  

Alan, You read the question correctly and as intended. I'm in the fun place of pissing off my boss for giving push back and contradicting what she heard our auditors say.  So I'm circling back to our auditors to hear from the horse's mouse what exactly was said and meant. Steve On Wednesday, September 4, 2019, 04:48:39 PM EDT, Hejnal, Alan <00000031f8bb5829-dmarc-request@LISTSERV.FUNDSVCS.ORG> wrote: Hmmm.  I read the question as referring to the written acknowledgment provided to the donor who contributed the item to be auctioned, rather that the written acknowledgment provided to the donor who purchased the item at the charitable auction.   Auctions are complicated because there are those two transactions, and they’re different sorts of transactions so they follow different rules.   The donor of an item to be sold at auction is making a straight non-cash/property gift, so the written acknowledgment would provide only a description of the property contributed, in enough detail so that any subsequent audit could adequately identify the item.  And, in the case of personal property donated for a charitable auction, the donor’s deduction (which is the donor’s responsibility to determine, in any case), would be limited to the lower of the item’s fair market value (FMV) and the donor’s basis in the item (generally whatever the donor paid to acquire it, which is usually lower).  What the item might have sold for at the auction wouldn’t have any bearing on the matter and would be irrelevant to the donor of the property (at least for tax purposes).   The only reason that we ask the donor of property for a charitable auction for the value of the property in the first place is not to reflect it back on the receipt to the donor of the property but rather because we need the value so that we can tell the potential bidder the value of the item, so that the bidder can decide whether they want to bid more than the item is worth, which establishes their intent to make a charitable contribution by making their winning bid of an amount greater than the item’s value.  So we would need to tell the winning bidder the value of the item (if they paid more than the value of the item) , so that they would know how much of their payment would be deductible.   My US$0.02 worth; the usual disclaimers apply.   Good luck!   Alan   Alan S. Hejnal    Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 (:202-633-8754|*:HejnalA@si.edu                                                                                                                                                                      From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG>On Behalf Of Gregory Duke Sent: Wednesday, September 4, 2019 4:28 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] In-kind Gift Acknowledgement   Steve:   I'll let our right honorable friend John Taylor give the final answer to this as he is an expert on the subject.   But if I remember correctly when the university I then worked for had an auction we did include both the purchase price and the FMV on the tax receipt.  It was our way of saying, "Yes, you purchased the item for $X, but the fair market value of the item is $Y".  As far as I know that wasn't actually required by the IRS, but it did seem to work for our donors.   Thanks,   Greg   Gregory Duke, D.Phil, bCRE-PRO Staupell Analytics   greg@staupell.com http://www.staupell.com   Ph. (716) 946-1870 Twitter:  GregoryEDuke   From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of Steve <steve0155@SBCGLOBAL.NET> Sent: Wednesday, September 4, 2019 4:08 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] In-kind Gift Acknowledgement   Good afternoon all,   We are preparing gift in-kind acknowledgements for an upcoming event and I need some input regarding the detail that is included to the donor of the item itself.   I am being told that the acknowledgement letter to the donor of the item must include the FMV AND the amount of the winning bid.  This in addition to the description of the item as provided by the donor.   For example, a letter to the donor of a Ladies 18 karat yellow god oval shape green jade and diamond ring would include the description as provided and the declared value of $350.00 and the purchased price of $175.00.   For that item the donor said that she was told by her accountant that the purchase price was needed to help determine how much she could deduct for taxes.  The FMV that she provided wasn’t sufficient.   Need advice and counsel on how to proceed with this.   Steve Walsh   Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org   | | | | Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St.... | | |        

Not a fun place to be. But I think that you’re wise to engage the auditors directly and hash out the issue and hopefully arrive at a mutually agreeable interpretation. Just be sure to bring along John Taylor’s authoritative interpretation! (and IRS Publication 1771 and maybe this<https://www.irs.gov/charities-non-profits/charitable-organizations/charity-auctions> from the IRS website) Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Steve Sent: Thursday, September 5, 2019 2:55 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] In-kind Gift Acknowledgement Alan, You read the question correctly and as intended. I'm in the fun place of pissing off my boss for giving push back and contradicting what she heard our auditors say. So I'm circling back to our auditors to hear from the horse's mouse what exactly was said and meant. Steve On Wednesday, September 4, 2019, 04:48:39 PM EDT, Hejnal, Alan <00000031f8bb5829-dmarc-request@LISTSERV.FUNDSVCS.ORG<mailto:00000031f8bb5829-dmarc-request@LISTSERV.FUNDSVCS.ORG>> wrote: Hmmm. I read the question as referring to the written acknowledgment provided to the donor who contributed the item to be auctioned, rather that the written acknowledgment provided to the donor who purchased the item at the charitable auction. Auctions are complicated because there are those two transactions, and they’re different sorts of transactions so they follow different rules. The donor of an item to be sold at auction is making a straight non-cash/property gift, so the written acknowledgment would provide only a description of the property contributed, in enough detail so that any subsequent audit could adequately identify the item. And, in the case of personal property donated for a charitable auction, the donor’s deduction (which is the donor’s responsibility to determine, in any case), would be limited to the lower of the item’s fair market value (FMV) and the donor’s basis in the item (generally whatever the donor paid to acquire it, which is usually lower). What the item might have sold for at the auction wouldn’t have any bearing on the matter and would be irrelevant to the donor of the property (at least for tax purposes). The only reason that we ask the donor of property for a charitable auction for the value of the property in the first place is not to reflect it back on the receipt to the donor of the property but rather because we need the value so that we can tell the potential bidder the value of the item, so that the bidder can decide whether they want to bid more than the item is worth, which establishes their intent to make a charitable contribution by making their winning bid of an amount greater than the item’s value. So we would need to tell the winning bidder the value of the item (if they paid more than the value of the item) , so that they would know how much of their payment would be deductible. My US$0.02 worth; the usual disclaimers apply. Good luck! Alan Alan S. Hejnal Data Quality Manager Smithsonian Institution - Office of Advancement 600 Maryland Avenue SW, Suite 600E P.O. Box 37012, MRC 527 Washington, DC 20013-7012 •: 202-633-8754 | •: HejnalA@si.edu<mailto:HejnalA@si.edu> [SNAGHTML5cbfa34]<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.si.edu%2F&data=02%7C01%7CHejnalA%40SI.EDU%7Cbd76d484adf94419aab508d732328fce%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637033065057749951&sdata=JOMdw1y4f7mC54h2A9OU%2Fz2zJZTxUp4CotJziK5S6VU%3D&reserved=0> [AASP_FundSvcs_LOGO-01(040pct)(mark)] From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Gregory Duke Sent: Wednesday, September 4, 2019 4:28 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] In-kind Gift Acknowledgement Steve: I'll let our right honorable friend John Taylor give the final answer to this as he is an expert on the subject. But if I remember correctly when the university I then worked for had an auction we did include both the purchase price and the FMV on the tax receipt. It was our way of saying, "Yes, you purchased the item for $X, but the fair market value of the item is $Y". As far as I know that wasn't actually required by the IRS, but it did seem to work for our donors. Thanks, Greg Gregory Duke, D.Phil, bCRE-PRO Staupell Analytics greg@staupell.com<mailto:greg@staupell.com> http://www.staupell.com<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.staupell.com&data=02%7C01%7CHejnalA%40SI.EDU%7Cbd76d484adf94419aab508d732328fce%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637033065057759944&sdata=%2B%2BjyU200XPY1EeB75pXX6Q2gd5xhn22VMNXKgmXuEFw%3D&reserved=0> Ph. (716) 946-1870 Twitter: GregoryEDuke [cid:image005.png@01D56402.CEDC3D70] ________________________________ From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> on behalf of Steve <steve0155@SBCGLOBAL.NET<mailto:steve0155@SBCGLOBAL.NET>> Sent: Wednesday, September 4, 2019 4:08 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> Subject: [FUNDSVCS] In-kind Gift Acknowledgement Good afternoon all, We are preparing gift in-kind acknowledgements for an upcoming event and I need some input regarding the detail that is included to the donor of the item itself. I am being told that the acknowledgement letter to the donor of the item must include the FMV AND the amount of the winning bid. This in addition to the description of the item as provided by the donor. For example, a letter to the donor of a Ladies 18 karat yellow god oval shape green jade and diamond ring would include the description as provided and the declared value of $350.00 and the purchased price of $175.00. For that item the donor said that she was told by her accountant that the purchase price was needed to help determine how much she could deduct for taxes. The FMV that she provided wasn’t sufficient. Need advice and counsel on how to proceed with this. Steve Walsh Stephen R. Walsh, bCRE-Pro Development Database Manager The Province of St. Joseph of the Capuchin Order 1820 Mt. Elliott Street - Detroit, MI 48207 313.579.2100 ext. 1208 (o) swalsh@thecapuchins.org<mailto:swalsh@thecapuchins.org> Twitter: @TheCapuchins Facebook.com/TheCapuchins http://www.thecapuchins.org<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.thecapuchins.org%2F&data=02%7C01%7CHejnalA%40SI.EDU%7Cbd76d484adf94419aab508d732328fce%7C989b5e2a14e44efe93b78cdd5fc5d11c%7C0%7C0%7C637033065057769939&sdata=FZbozJEGOE8njNFtDWjFu%2FsvtrZraXZUbJ0HAeR2VbM%3D&reserved=0> Capuchin Franciscan Province of St. Joseph Inspired by the gospel of Jesus and the example of Francis of Assisi, the Capuchin friars of the Province of St....