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Can items auctioned to raise proceeds for a non-profit ever be considered a non-profit donation?

ZoinsZoins Posts: 34,110 ✭✭✭✭✭
edited July 16, 2023 4:28AM in U.S. Coin Forum

Great Collections is selling what may be the first PCGS slab with the funds going to Witter University.

I was wondering when an item is sold this way, can the buyer's payment be considered a non-profit donation for tax purposes?

Also, can the seller, JD in this case, claim the realized price as a non-profit donation as well?

Calling @ianrussell @SethChandler :)

See more here:

https://forums.collectors.com/discussion/1093387/the-start-of-pcgs#latest

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    CoinosaurusCoinosaurus Posts: 9,619 ✭✭✭✭✭

    First question is whether Witter University is setup as a 510c3.

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    daltexdaltex Posts: 3,486 ✭✭✭✭✭

    I'm not a tax professional, and I'd suggest you ask one before doing anything buying or selling this way, but I can't imagine that the government would allow multiple people to donate more than 100% of the sum total of what the 501(c)(3) receives.

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    jmlanzafjmlanzaf Posts: 32,687 ✭✭✭✭✭

    @Zoins said:
    Great Collections is selling what may be the first PCGS slab with the funds going to Witter University.

    I was wondering when an item is sold this way, can the buyer's payment be considered a non-profit donation for tax purposes?

    Also, can the seller, JD in this case, claim the realized price as a non-profit donation as well?

    Calling @ianrussell @SethChandler :)

    See more here:

    https://forums.collectors.com/discussion/1093387/the-start-of-pcgs#latest

    You should call a CPA.

    This is fairly common practice. For example, buying a ticket to a fundraising dinner. In such a case, you can only deduct the donation in excess of the value received. If you pay $100 for a BIG Mac, you can deduct the $90.

    In this case, I think it is unlikely that an auction result of a unique item would be viewed a gaming much "excess value".

    The donor of the item can, of course, donate the value of the item.

    All of this, of course, assumes that the charity is properly registered as a 501.

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    CoinosaurusCoinosaurus Posts: 9,619 ✭✭✭✭✭
    edited July 17, 2023 6:41AM

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