At a Charity auction,What % is a donor permitted to keep of an item sold? What % must go to the charity.?

Question

Im donating a Kustom Kar which I built, to be auctioned for a charity, I have heard Im only obligated to give the charity 30% of the sale price. I have looked on the net and cant seem to get the exact legal rules other then a bunch of tax stuff. I am a small biz. owner and am doing theis for 2 reasons, the charity and I need to sell this kar, because I need to put it back into my biz, which is building kustom kars.

Answer 1

It's not the way charity auctions work. When you donate to charity, you donate the item. The auction only establishes the value of the item (and your donation); the ownership has already passed to the charity prior to the beginning of the auction, so you can't have anything back.

If you want to keep a percentage of proceeds, you must be the legal owner of the item when it is auctioned off (in which case you can no longer call it a charity auction; it's a straight auction with a percentage of proceeds benefiting a charity). You put the item on the auction block, and when it sells, you collect the money from the buyer and make a cash donation (in a smaller amount) to the charity.

Answer 2

In my opinion, I don't see why you can't label something as a charity auction even if you are not donating the entire portion of the proceeds. (And I would recommend researching all applicable federal and state laws.)

However, it is very important that you are clear. Very clear. Full disclosure is crucial. What you give is what you give. You should be able to decide. However, if you label something as a charity auction and don't specify that only a portion of the proceeds are going to a charity, I think you will likely run into problems.

If you search the internet, you will see charity auctions where only a percentage is being donated. However, you will also see that the exact percentage (or amount) is clearly disclosed.

Good luck!

Answer 3

never heard of a donator being able to keep any part of a donation or one that only donated a percentage - what happens if the auction only raises 50% of what you were looking to get (less auction fees) - would the charity get anything then?

Answer 4

I had no idea that you got any of it. I thought if you donated it, the charity kept the proceeds, and you got a write off.

Answer 5

lime green fishnet stockings. I did an information superhighway quiz it stated if i replaced into an inanimate merchandise i may be lime green fishnet stockings, they're wacky and unusual and purely slightly an obtained style with out actual purpose.