John,
It's never over...
Classmate is an attorney and says, "In order for the purchaser to get the tax benefit (and for artist to avoid taxable income on the price of the painting) the purchaser should make a donation to the school in honor of artist."
In Case Global Reporting Standards, 1st ed, p 26, 3.1.5: A tangible donor benefit is a payment made partly as a contribution and partly in consideration for goods or services provided by the institution...
We are not running the auction or sanctioning it. We are not providing the benefit.
Is there any tax code that prevents this?
Thanks,
Therese
------------------------------
Therese Morris
St. Paul's School
Concord, NH United States
tmorris@sps.edu------------------------------
Original Message:
Sent: 04-04-2025 08:52 AM
From: John Taylor
Subject: Would this be a donation?
There isn't a gift here. The buyer receives something of equal value in exchange for the payment.
In this case, the only way to create a deductible gift is for the artist to donate the art to you. You can then sell it at a silent auction stipulating a FMV for the artwork. The difference is a deductible gift if the winning bidder pays more than that FMV.
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 4/4/2025 9:22:00 AM
From: Therese Morris
Subject: Would this be a donation?
An artist is interested in auctioning off a piece of his artwork to his class mates. The artist wants the highest bidder who receives the artwork to send the proceeds to us as a donation. Would we consider the artwork a benefit to the donor (highest bidder) and reduce is donation by the FMV? Would it be better for the artist to make the donation after he receives the proceeds?
Thanks for any insight,
Therese
------------------------------
Therese Morris
St. Paul's School
Concord, NH United States
tmorris@sps.edu
------------------------------