James,

I think you should issue two quid pro quo receipts for the two items the
donor paid more than FMV for.  The fact that the donor consolidated by
writing one check does not negate the fact that two cash (net) gifts were
made.

John
John H. Taylor, Director
Alumni & Development Records
Duke University
Box 90581
Durham, NC  27708-0581
919-684-2338; Fax: 919-684-8527


-----Original Message-----
From: [log in to unmask]
[mailto:[log in to unmask]]On Behalf Of James Kew
Sent: Friday, February 23, 2001 12:23 PM
To: [log in to unmask]
Subject: [FUNDSVCS] Auction fun


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