Page 34 - 2019 Aucilla Celebration Auction Booklet

IRS Disclaimer & Tax Advisory Statement

The following advisory is intended to help you more accurately determine the deductibility of your gifts
to Aucilla Christian Academy.

The IRS requires charitable institutions to provide adequate information to donors concerning not only
gifts in general, but also quid-pro-quo giving. Quid-pro-quo refers to donations made where some goods
or services are returned to the donor, such as auction purchases and admission. Current tax laws also
state that cancelled checks are no longer adequate proof of a single gift or $250 or more. A written
receipt or letter is now required and it must specifically state if any goods or services were received by the
donor in return. Otherwise, the IRS may not allow the deduction.

At the conclusion of the auction, we will provide you with a receipt declaring the estimated value of any
goods or services received.

Regarding auction purchases, the price paid for an item/service generally is NOT the deductible amount of
the gift. The purchase price of the item less its fair market value (FMV) is the gift amount/tax deduction.
This is shown in the example below. In addition, purchases of chances for raffles, etc. are generally NOT
deductible because the IRS states the FMV received is the “chance” to win a prize.

For example: Purchase Price Paid: $200
FMV of Item $100
Qualifies for gift/deduction $100

Admission donations can be partially deductible by the amount the donation exceeds the fair market
value (FMV) of entertainment and/or food received in return. Tonight’s deductible amount is $20.

AUCTION VALUES HAVE BEEN DETERMINED BY THE DONOR. AUCILLA CHRISTIAN ACADEMY ASSUMES
THE DONORS’ REPRESENTATIONS ARE REASONABLE. HOWEVER, AUCILLA CHRISTIAN ACADEMY DOES
NOT INDEPENDENTLY VERIFY VALUES OF DONATED ITEMS AND EXPRESSLY DISCLAIMS ANY
GUARANTEE OR WARRANTY OF AN ITEM’S VALUE.

34