Going once, going twice – If you’re holding an auction, learn the rules of tax compliance

Description

Abstract: Charitable auctions have long been lucrative fundraising and stakeholder engagement events. And the option of cost-effectively conducting online auctions has only made these activities more popular. But auctions also come with some tax compliance responsibilities, largely related to substantiating donations. This article discusses acknowledging auction item donations, information to provide to donors, and substantiation requirements for the winning bidders. A sidebar highlights how organizations can satisfy their sales tax obligations.