Auction Purchase Receipts in RE

Patrick Flynn · April 2019

Hey everyone!

I run two fundraising events in my organization, both with auctions. I do not run a GL through RE, just capture gifts and purchases. When someone purchases an auction item, which has a fair market value of, say, $125, and I have documented that with an in-kind gift from the donor, or possibly not at all if we purchased the item (even at a discount or at cost). When I enter the auction winner's gift record, how do I document the FMV of the item(s) on the gift so that they are receipted correctly through RE? Also, sometimes I have to make one gift record for multiple payment types (auction purchase, raffle tix, wine pull) and I will split the gift, and break up the appear or fund accordingly, if this is the case, how do I ensure the receipt is handled correctly?

Any help would be appreciated.

Patrick Flynn

JoAnn Strommen · May 2019

You have a number of questions in your post. First, raffle tickets should not be combined with any other items. Purchase of raffle tickets is not a donation. It is a game of chance/gambling and amount is not deductible in any way.

Enter the amount paid for auction item as a cash gift, use reference or gift attribute for detailed description of the item purchased. Some orgs will use gift amount for full amount and receipt amount for the amount above FMV. The full amount received needs to be recorded in at least one field for accurate records of funds raised. If we don't know true FMV we include detailed description of what they purchased. Receipt contains statement to consult tax advisor regarding any tax implications.

I'm not a fan of split gifts so will leave that for someone else to discuss.

Crystal Bruce · May 2019

Discussion moved to Raiser's Edge forum. Thanks!

Donna Mainord · May 2019

Hello,

I use the "Benefit" section in the RE Gift tab. You can track the FMV which will give a true Receiptable about for your Tax receipt.

Patrick Flynn · May 2019

Donna Mainord‍ The only problem with using the benefit feature is that if the FMV of the auction item it gives an error and will not allow a price above the gift amount.

i.e. the donor wins a $500 value item at the auction, and the winning bid was $100, RE will not allow me to put a $500 benefit value in the gift record. I do not know how else to enter this besides manually entering the receipt amount.

Donna Mainord · May 2019

Yes, that has happened to me a couple times. For us the FMV is generally lower than the action bid, so I rarely run into the opposite issue.

Sorry I couldn't be more helpful.

Carrie Roberts · May 2019

I have run into this too. I set the Benefit same as the amount paid to zero out the receipt amount, then set up a gift attribute with the actual FMV that gets merged into the thank you letter's footnote.

This acknowledges your donation via credit card of $50.00 {gift amount} at the {Agency Event Auction}, of which $0.00 {receipt amount} is tax-deductible. Goods or services valued at $75.00 {gift attribute description} were provided in exchange for this donation.

It's a little clunky but it works.

Patrick Flynn · May 2019

That's a great idea I will play with that!

Donna Hansen · July 2021

I'm not seeing the Gift Attribute Description as optionsfor my RE mail merge letter set up. How do you get those to show as options?

Auction Purchase Receipts in RE

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