Jump directly to the content

Q&A: Are Tax Deductions Allowed for Silent Auctions?

Yes, but you must make sure the receipts you issue are appropriate under the circumstances.

My church is holding a silent auction of items donated by artists and craftsmen in the congregation. Can donors receive tax deductions for their noncash contributions? Can winning bidders receive deductions for items purchased? We hope winning bids will be much higher than the normal selling price.

Yes, the donor of an item he or she created is entitled to a deduction, but in many cases, the amount of the deduction won't be fair market value. Artists are generally limited to cost basis for contributions of property they create and donate to charity. And unless the recipient 501(c)(3) church/charity uses the property in its exempt activities, donors in general are limited to cost basis deductions (not fair market value) for contributions of appreciated tangible personal property (items other than securities, which are intangible, and land and buildings, which are real property). Selling ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related ResourcesVisit Store

2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
Charitable Contributions Tax Reminder
Charitable Contributions Tax Reminder
Encourage benevolence by informing your donors about tax deductions they could claim by properly reporting charitable contributions.
Increase Giving at Church
Increase Giving at Church
Develop practical and digital strategies to cultivate a culture of giving.
Best Practices for Receiving Charitable Contributions
Best Practices for Receiving Charitable Contributions
Practical help and clear understanding on issues surrounding charitable contributions.