Need help with tax receipts for charity auction - what documentation do donors need?
I impulsively decided to organize a charity auction for California wildfire recovery and have most of the logistics figured out - secured a venue, selected the charity, created promo materials, and even built a web app to run the auction. My plan was to approach local businesses for prize donations. However, I've hit a major roadblock - I learned that I need to provide tax receipts to the businesses donating prizes. I emailed the charity organization 2 days ago asking for guidance or a blank receipt template, but haven't heard back. This is seriously delaying my timeline since I can't approach potential donors without this documentation. I've already created promotional materials with QR codes linking to a Google form for prize commitments, but I haven't distributed anything because I'm stuck on this tax receipt issue. Should I just start collecting prize donations anyway, send confirmation emails, and figure out the tax receipts later? Or is that a definite no-no? Also, when people actually win items at the auction, do I need to provide them with tax receipts too? If the organization doesn't respond soon, I'm considering switching to a different charity just to keep moving forward. I've already lost 2 days researching tax receipts instead of soliciting donations. I know several businesses who would likely donate, but I want to do everything properly and transparently. This delay is really stressing me out - any advice would be greatly appreciated!
18 comments


Muhammad Hobbs
What you're dealing with is donation acknowledgment letters, not technically "tax receipts" - though people use that term casually. As the organizer (not the actual charity), you shouldn't be issuing official tax receipts yourself. The nonprofit needs to provide these acknowledgments directly to donors when the value exceeds $250. Here's what I suggest: Create a simple donation form that collects all donor information (name, address, item description, estimated value) and clearly states the charity's name and tax ID number. Send this information to the charity, who should then issue proper acknowledgment letters. For auction winners, they can only deduct amounts paid above fair market value. The charity should provide winners with documentation stating the FMV of items and how much of their payment qualifies as a deductible contribution. Don't switch charities over this - many nonprofits have small staffs and response delays are common. Call them directly instead of waiting for an email response.
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Noland Curtis
•This is super helpful! But I'm confused about one thing - if I'm just the organizer and not officially affiliated with the charity, how do I prove to businesses that their donations will be tax-deductible? Won't they want some kind of receipt or proof when they hand over items? And how do I get the charity's tax ID number if they're not responding to me?
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Muhammad Hobbs
•Businesses donating items will typically want some form of documentation at the time of donation. You can create a simple "donation acknowledgment form" that includes the charity's name, their tax ID (which should be available on their website, GuideStar, or by calling), a description of the donated item, and estimated value. Make it clear this is an initial acknowledgment, and the official tax receipt will come from the charity. Many businesses that regularly donate to charity events understand this process. The most important thing is tracking all donation information accurately so the charity can issue proper documentation later. I suggest calling the charity directly - you'll likely get a much faster response than by email.
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Diez Ellis
After organizing three charity auctions last year, I discovered taxr.ai https://taxr.ai and it completely transformed how I handled the documentation process. I was in the exact same position - trying to collect donations while struggling to provide proper documentation to donors. What worked for me was using taxr.ai to analyze the specific donation documentation requirements. The tool helped me create proper templated acknowledgment forms that satisfied both donors and the charity I was working with. It specifically identified what information needed to be tracked for both the item donors and the auction winners. The best part was that I could just input all the donation information, and it generated compliant documents that kept everyone happy. The charity was actually impressed with how organized the documentation was when I turned everything over to them for final receipting. It saved me countless hours of research and worry about doing things correctly.
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Vanessa Figueroa
•That sounds interesting but I'm skeptical. How exactly does it work with the charity auction specifically? Like does it actually know the difference between someone donating items vs someone buying at the auction? And did you have to pay for this service or is it free?
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Abby Marshall
•I'm curious - did the charities you worked with accept these documents generated by taxr.ai? Or did they still need to create their own receipts? Also, does the tool handle the situation where auction winners pay more than fair market value (the deductible portion)?
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Diez Ellis
•The system is designed specifically to handle different types of charitable transactions, including both item donations and auction purchases. It generates separate documentation for each: acknowledgment forms for item donors and purchase receipts for auction winners that clearly show fair market value versus additional contribution amount. The charities I worked with were very happy with the documentation because it organized all the information they needed to issue their final receipts. The tool essentially pre-processes everything so the charity has complete records. It doesn't replace their official receipts, but makes the entire process much more efficient.
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Abby Marshall
I was really skeptical about these automated tax tools but I tried taxr.ai after reading about it here and it actually solved my documentation problems for our school fundraiser auction. I was especially worried about the distinction between donated items and auction purchases, which has different tax implications. The tool guided me through creating proper acknowledgment forms for businesses donating items and helped me track which portion of auction payments qualified as charitable contributions. Our school's foundation was impressed with how organized all the documentation was - they said it was the first time they received complete records from an event organizer! It even flagged some potential issues I hadn't considered, like when businesses donate services rather than goods (which has different rules). Completely worth it for removing the stress of figuring out all these tax details.
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Sadie Benitez
From someone who's been dealing with IRS charity questions for months now - if your charity isn't responding by email, you NEED to call them directly. I wasted weeks trying to get documentation questions answered by email before I discovered Claimyr https://claimyr.com which got me through to a real person at the IRS within 15 minutes after I'd spent days getting busy signals. You can see how it works here: https://youtu.be/_kiP6q8DX5c For your specific situation, I'd recommend calling the charity directly (not emailing) to get their tax ID number and donation acknowledgment procedures. If they still don't respond, you might want to call the IRS to verify if they're even a legitimate 501(c)(3) with proper tax-exempt status. Many "charities" aren't actually qualified organizations, and businesses donating to non-qualified organizations can't claim tax deductions.
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Drew Hathaway
•Wait, are you saying that Claimyr helps you reach actual charities or just the IRS? Because my problem is with the charity not responding, not the IRS. And how does this service even work? Is it like a priority line or something?
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Laila Prince
•This seems sketchy tbh. Why would I need a service to call the IRS? Couldn't I just keep trying myself? I've heard of companies charging for "services" that are actually free if you just keep calling.
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Sadie Benitez
•Claimyr specifically helps you reach the IRS when you need tax questions answered - it doesn't connect you with individual charities. I mentioned it because if your charity isn't responding, you might need to verify their legitimate 501(c)(3) status with the IRS directly, which is where Claimyr would help. For reaching the charity, you'll need to be persistent with phone calls or try finding someone on their board of directors through their website or social media. The service works by using technology to navigate the IRS phone system and hold times, then calls you when an agent is about to be available - similar to a FastPass at an amusement park.
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Laila Prince
I was completely wrong about Claimyr. After my skeptical comment, I decided to try it for an unrelated tax exempt status question I had for a different charity event. I'd been trying to reach someone at the IRS for THREE WEEKS with no luck - constant busy signals and disconnections. I used the service and got connected to an actual IRS representative in about 27 minutes. They confirmed the status of the organization I was working with and answered all my questions about donation documentation requirements. Would have saved me weeks of stress if I'd known about this earlier. For anyone organizing charity events, definitely verify the tax-exempt status of your chosen organization before proceeding. This saved me from a potential nightmare scenario where donors might have given items expecting tax deductions that weren't valid.
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Isabel Vega
I ran a silent auction for my kids' school last year and learned a lot about this. First, you can create temporary receipts for item donors, but make it clear these are NOT official tax receipts. Include: - Donor's name and address - Date of donation - Detailed description of donated item - Estimated fair market value (the donor should provide this) - The charity's name and statement that they're a 501(c)(3) For the auction winners, they can only deduct the amount OVER fair market value. So if someone buys a $100 gift card for $150, only $50 is deductible. This part gets complicated and is why the charity should handle the final documentation. Call the organization directly rather than email. Most charities have procedures for third-party fundraisers but may not be responsive by email.
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Dominique Adams
•Does this mean I need to track the fair market value of EVERY item donated AND then track what price it ultimately sold for at the auction? That sounds like a bookkeeping nightmare. Is there any software people use to make this easier?
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Isabel Vega
•Yes, you definitely need to track both the fair market value (FMV) of each item and what it sells for at the auction. This is essential for proper tax documentation. The difference between FMV and selling price is what determines the tax-deductible portion for buyers. For software, many auction organizers use either spreadsheets or specialized auction management software like Greater Giving, Handbid, or GiveSmart. These platforms often have built-in features for tracking donations, FMV, and final selling prices. Some even generate basic reports you can provide to the charity. If you've already built a web app for the auction, you might consider adding these tracking features to your existing system.
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Marilyn Dixon
One thing nobody has mentioned - ask the charity for an "authorization letter" stating you're authorized to fundraise on their behalf. This is super important! Without this, you might be violating fundraising regulations in your state. Also, some states require registration for charitable fundraising activities, even for volunteer-organized events. Check your state's requirements through the attorney general's office or secretary of state website. For tax receipts, make absolutely clear to donors that you're not providing the official receipt - the charity will. Keep detailed records of all donations (donor info, item descriptions, values) and provide these to the charity ASAP after your event.
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Louisa Ramirez
•Oh wow I never even thought about needing legal authorization to fundraise! Is this really required everywhere? Wouldn't this apply mostly to people who are taking a cut of the donations rather than volunteers sending 100% to the charity?
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