James Kew wrote:
>
> 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

I am new to this, but I would think the donor would be entitled to their
$25 tax deduction.  If they had not bid on the first item, they
certainly would have gotten the deduction for the other two.  I don't
think they should be penalized for getting one item at a "bargain"
price.

Maureen Tauriello
Assistant Director of Information Services
Drew University
Phone 973 408 3442
Fax     973 408 3691
e-mail [log in to unmask]