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  • 1.  One Auction Item Purchased by Multiple Donors

    Posted 03-30-2023 08:16 PM

    Can anyone provide their perspective on booking an auction item purchase where there was one item and 3 parties went in on it together? The FMV was $10K and only one of the individuals paid over that amount. Is this the only person that receives credit or does the FMV get split? I haven't had one of these before.

    Thank you!
    Margie



  • 2.  RE: One Auction Item Purchased by Multiple Donors

    Posted 03-30-2023 08:34 PM
    If only one person paid, only person gets a receipt. You can issue soft credit to others if that is your desire.

    If they all want legal credit you should return the check and let each of the buyers/owners write checks. You can divide the value of the purchase into thirds and reflect one-third ownership on the receipt. Then process each check and receipt as a QPQ.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



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  • 3.  RE: One Auction Item Purchased by Multiple Donors

    Posted 03-31-2023 07:52 AM
    In this case, they all wrote individual checks. They all want to benefit from the auction purchase...it's a lounge experience in athletics valued at $10k. Two of the checks were under the FMV and one was above.

    Wouldn't just the one person get tax credit for the amount he paid above? Or do I split the FMV which will lower the amount for each person and they would all get c refit for the amount paid above the $3,333.33?



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  • 4.  RE: One Auction Item Purchased by Multiple Donors

    Posted 03-31-2023 07:56 AM
    Okay - that's a bit different from what was originally described.

    You are going to have to ask the auction participants. Ideally, the benefit would be subtracted from a single check. But what you just stated is that they ALL want to benefit. The only solution I can think of (if they won't allow one purchaser to handle this) is to prorate the benefit value based on how much each person paid.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





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  • 5.  RE: One Auction Item Purchased by Multiple Donors

    Posted 03-31-2023 08:35 AM

    I've encountered this sort of shared-auction-purchase in the past, and we pro-rated the benefit based on the respective fractions of the payment.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal    (he/him/his)

    Data Quality Manager

     

     




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  • 6.  RE: One Auction Item Purchased by Multiple Donors

    Posted 03-31-2023 09:43 AM

    Thank you, both! Appreciate your quick responses.

    Margie

     




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