Is the winning bid tax deductible for our donors?

When live auction winners at a disease research gala ask about tax deductions, they’re really asking about the difference between what they paid and what the trip is worth. The IRS allows a charitable deduction for the amount above fair market value. That value is not a guess. It comes from published rack rates for the travel or experience. For your donors, a bid of $7,500 on a $5,000 package could yield a $2,500 deduction.

You don’t pay upfront for these live auction travel packages. You reserve them at no cost, set a reserve based on the package cost, and only pay if they sell. Most packages sell 30 to 50 percent above cost, so there’s profit from the first bid. The fair market value is clearly printed for each experience, so donors know exactly what part of their bid may be deductible. That number comes from rack rates, not estimates.

Before your next gala, pick a few travel experiences that match your donors’ interests. Think Kentucky Derby, Formula 1, or Napa. You can browse over 140 options, reserve them free, and get a one-page display with photos and the fair market value for each. That value is what donors need for their tax records. Giveback XP helps you choose the right number and mix. You only pay if an item sells, keep 100% over cost, and can sell experiences multiple times if bidding gets hot. Items can even be added the day of the event.

With the tax question answered clearly in the catalog, your donors bid with confidence. Your committee stops fielding guesswork questions at the table. The auction runs smoothly, paddles go up, and you raise more for research and patient programs. All without another donation ask.