The way it works is the tax deductable part is the amount that is over the acual retail value. Sio if it costs you $40pp the tax deductable part is $20 on the $60 ticket and $10 on the 50.
for the sale of items, it works the same way, under value to fair market value is a wash, anything over FMV is tax deductable for the buyer and the recipet they recieve at the auction is plenty of proof.
the donor gets a recipt of doation for FMV of the donated item leaving the winner to get anything over that, no doubble dipping for this country
On the receipts issue - yes, you'll want to issue one. But you'd want to keep it simple and just have something pre-printed the ticket sellers can initial hand over as they sell the tickets. For a $60 item, I don't think you'd want to mail receipts later.
Keep it easy for everyone.
Last month I was at a professional organization event and they were collecting for a select charity (Sea Turtles). I'm not sure why they didn't have a fill in the blank receipt, but they did have pre-printed receipts for a $10 contribution. So if you gave $50, you got FIVE slips of paper. Seemed a bit odd to me, but it will work when it comes time to report. At least they did offer documentation!
someome mentioned tax write off of part of the gala ticket.
i think the irs now requires RECEIPTS for everything (but i might be wrong, i dont do my own taxes), new rule since mid last yr i think, so might be best to let peple know in advance (on the adverts for the event) they will get a letter stating how much of hteir ticket is tax deductible (if in fact you are a registered non profit, if youre not, then propbably none of it is a tax write off unliess the district will provide a letter stating it IS, under their tax ID).
letting people know its tax deductible and that they will get confirmation, can make a difference in attendance.
I have a few comments:
You need to bring in some good gifts for your auction. 10k will not bring in 100k in proffit even with ticke sales, You have to make the stuff you sell worthy of the ticket price. Most of these events cost about $40pp, food, table cloth, mailings etc, all factor in to the cost of running the event so $60/$50 is not an unreasonable price.
The BIN option is GREAT. We set most items at 200% it means some stuff will go, but not all of it, I don't mind if non attendees do a BIN, i don't have to feed them and I am hrilled to get 200% of value. Tickes, mostly sporting, theater concert, need a tweeking on the 200%, it should be more lie 3-400% BIN
All items should have bid steps, nothing worse than being out bid by a $1, (depending on the item value)
if this is a first auction, I am not supprise you ticke sales are low, you are too far out for them to be what they should be, give it another fe week, and you will have walk-ins too.
