FundSvcs Community

John,

Thanks for the additional pointers. I did skim over the auction piece as the vendor is doing the auction on our behalf, and the gift is to their charitable foundation, not us directly. So, they're responsible for that portion. Of course, I'll be checking to make sure they are actually doing those things.

Regarding the receipting of the rounds of golf to be auctioned off, that's a good idea to not receipt until after the auction. Even then, do you normally get something in writing from the donor committing them to actually paying for the round? I guess what's confusing me is that with the GIKs we normally get, there's usually a physical thing we take possession of or, in the rare certainly not encouraged cases, a donor provides us with a receipt for something they paid for that we would normally pay for (e.g. catering for an event). The GIK always happens after the fact. Here, we're auctioning off something without ever actually receiving it.

Regarding your note on sales tax, can you clarify exactly what you mean? Are you saying if a donor wins an auction for a round of golf with a FMV of $1,000 with a winning bid of $2,000, we (Lehigh) would need to remit sales tax on the $1,000 non-charitable portion? That's not something I've encountered before. As I said, we don't really do auctions here (at least not that DAR is made aware of -- which is another problem entirely). If that's the case, I wonder how that's impacted by the fact that the vendor is running the auction, and we just get proceeds. They're not our agent in this case.

Thanks.

Sean

John,

Thanks for the additional pointers. I did skim over the auction piece as the vendor is doing the auction on our behalf, and the gift is to their charitable foundation, not us directly. So, they're responsible for that portion. Of course, I'll be checking to make sure they are actually doing those things.

Regarding the receipting of the rounds of golf to be auctioned off, that's a good idea to not receipt until after the auction. Even then, do you normally get something in writing from the donor committing them to actually paying for the round? I guess what's confusing me is that with the GIKs we normally get, there's usually a physical thing we take possession of or, in the rare certainly not encouraged cases, a donor provides us with a receipt for something they paid for that we would normally pay for (e.g. catering for an event). The GIK always happens after the fact. Here, we're auctioning off something without ever actually receiving it.

Regarding your note on sales tax, can you clarify exactly what you mean? Are you saying if a donor wins an auction for a round of golf with a FMV of $1,000 with a winning bid of $2,000, we (Lehigh) would need to remit sales tax on the $1,000 non-charitable portion? That's not something I've encountered before. As I said, we don't really do auctions here (at least not that DAR is made aware of -- which is another problem entirely). If that's the case, I wonder how that's impacted by the fact that the vendor is running the auction, and we just get proceeds. They're not our agent in this case.

Thanks.

Sean

John,

Thanks for the additional pointers. I did skim over the auction piece as the vendor is doing the auction on our behalf, and the gift is to their charitable foundation, not us directly. So, they're responsible for that portion. Of course, I'll be checking to make sure they are actually doing those things.

Regarding the receipting of the rounds of golf to be auctioned off, that's a good idea to not receipt until after the auction. Even then, do you normally get something in writing from the donor committing them to actually paying for the round? I guess what's confusing me is that with the GIKs we normally get, there's usually a physical thing we take possession of or, in the rare certainly not encouraged cases, a donor provides us with a receipt for something they paid for that we would normally pay for (e.g. catering for an event). The GIK always happens after the fact. Here, we're auctioning off something without ever actually receiving it.

Regarding your note on sales tax, can you clarify exactly what you mean? Are you saying if a donor wins an auction for a round of golf with a FMV of $1,000 with a winning bid of $2,000, we (Lehigh) would need to remit sales tax on the $1,000 non-charitable portion? That's not something I've encountered before. As I said, we don't really do auctions here (at least not that DAR is made aware of -- which is another problem entirely). If that's the case, I wonder how that's impacted by the fact that the vendor is running the auction, and we just get proceeds. They're not our agent in this case.

Thanks.

Sean