Why Your Benefit Auctioneer Must Understand The Tax Side of Donating to Charities
The purpose of charitable giving is for a donor to support a cause in which he or she believes. In recognition of the impact these donations make to the community, governments provide income tax credits to encourage giving by taxpayers.
Your auctioneer must understand what does and does not qualify for a tax credit in order to ensure that any promises they make while onstage during the live auction can be upheld by the charitable organization. This is especially relevant to the fundraising appeal which should be a component of the live auction.
In order for a financial gift to qualify for a tax credit, it must meet certain criteria:
- There must be a voluntary transfer of property with no expectation of benefit or consideration.
- The property must vest with the recipient.
- The transfer must be irrevocable.
- The recipient must receive full ownership and possession of the property transferred.
Your attendees will support your cause because it aligns with their values and they believe in the excellent work you are doing, not because of the tax receipt, however knowing when they should and should not expect to receive one is an important piece of information to share, and can complement the auctioneers appeal for donations.