So to confirm, if the Gift Amount<FMV your recommendation is not to issue any type of receipt for the transaction? Even if it clearly states the Gift Amount is 0?
We do understand the physical items are straightforward, but if a donor decides not to use a dinner or a trip and wants a new tax receipt is your recommendation just to re-receipt them at that time? We were hoping to put this back on them to claim as appropriate with their tax advisor.
Catherine
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Catherine Stephens
Beth Israel Lahey Health
catherine.stephens@bilh.org------------------------------
Original Message:
Sent: 10-03-2024 09:15 AM
From: John Taylor
Subject: Auction Item
There is no "gift" receipt unless the winning bidder pays more than the published FMV. In that case you issue a standard QPQ receipt: Thank you for your winning bid of $500 for which you received a new 1200 Watt Black & Decker Toaster Oven valued at $250. Therefore, your net deductible amount is $250.
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: 10/3/2024 10:12:00 AM
From: Catherine Stephens
Subject: RE: Auction Item
Hi John,
Apologies that first message was sent in error. We are looking for guidance specifically on the tax receipt for an auction item winner for an event. We currently receipt the payment amount and the gift amount, and the gift amount is often $0 since the payment is less than the FMV of the item. We are wondering if there is additional language that folks have included for the donor if they decide not to claim the item (ie a dinner or trip). Essentially that if they aren't going to use the auction item, they should consult with their tax advisor.
Thanks,
Catherine
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Catherine Stephens
Beth Israel Lahey Health
catherine.stephens@bilh.org
Original Message:
Sent: 10-03-2024 08:57 AM
From: John Taylor
Subject: Auction Item
Assuming this is an item being donated for the auction, a standard GIK receipt is appropriate. That includes a description of what was given and its purpose - no valuation information should be included.
For example, "Thank you for your gift of a new 1200 Watt Black & Decker Toaster Oven to be auctioned off at our fall fundraiser."
In my policies, I state that these receipts should NOT be issued until AFTER the auction. What they sell for is irrelevant. However, I have been involved in far too many auctions where donors have requested the return of the item if it did not sell. Therefore, I am only willing to issue a receipt once I know the item has been sold.
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: 10/3/2024 9:05:00 AM
From: Catherine Stephens
Subject: Auction Item
Whats the best practice to use on the receipt for Auction Items.
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Catherine Stephens
Beth Israel Lahey Health
catherine.stephens@bilh.org
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