Dear Colleagues,

At your institution's charity auction, at which the fair market value (FMV) of each item was made known to the bidders in advance, Donor X successfully bids on three items, as follows:

Item 1 - FMV $300 - Bid $225
Item 2 - FMV $125 - Bid $140
Item 3 - FMV $55 - Bid $65

The donor writes one check for $430.00.  Looking at this item-by-item, there is no tax-deductible amount on Item 1, $15 deductible on Item 2, and $10 deductible on Item 3.  Would you then issue a receipt showing a tax-deductible $25, or would you look at the items in the aggregate, noting that Donor X paid a total of $430 for $480 worth of "goodies," and issue no gift receipt?

Many thanks!

James Kew
Benedictine College
Atchison, KS