Is the winning bid tax deductible for our donors?

You run a golf outing for a disease research or patient charity. A donor asks at the table whether their winning bid is tax deductible. The committee does not want to guess wrong on a tax question, and the answer affects how high paddles go.

At a charity auction, the amount a donor bids above the item's fair market value is generally tax deductible. That is the rule, and it applies to your golf outing packages. Fair market value is the retail price a package would sell for outside a fundraiser. For the travel and experience packages you offer, fair market value is set from rack rates and printed right in the catalog. Donors see the number they need.

Every package you list includes that fair market value figure. It is not a guess. It comes from published rates for the trip or experience. Because your crowd includes big-time donors with a personal connection to the cause, having that number ready matters. Rooms bid like it, and the catalog gives them confidence.

What you can do this week: Include the fair market value with every auction package description. Giveback XP provides that number for each experience, so your catalog is ready. Tell donors to confirm with their tax advisor, but also show them exactly where to find the figure. That stops the question before it becomes a hesitation.

After the event, winners book their travel and your charity keeps 100 percent over the cost. The tax question is answered, the paperwork is clear, and your committee moves on to planning the next successful outing.

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