We found a company that will provide travel vouchers at discounts to organizations, for the organizations to have an auction for, or hold in a raffle.
What I'm wondering is, in the case when someone bids, and there is a winner, how much of the bidded item can a donor write off for taxes? Can they write off the full amount, or only whatever they bid, over the company's base price.
Example: There's an item that has a base of $1000. The winning bidder bids $2000. Will the winner be able to write off the full $2000 that they donated to the auction, or only the $1000 over the base that the company is charging?
On the other side, if it's make an donation, get a ticket, and a random winner is drawn, how does that work?
Thanks for your help!
I hope you are well. I would suggest reaching out to our community page, where you can find a mentor in your area with expertise in accounting or finance who would be able to answer your question the best!
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