We are hosting a fundraiser coming up with a silent auction component. We recently had a painting donated to us and the individual is asking for a tax receipt for $1,200. This is a new experience for us as this seems to be his personal evaluation of how much his painting is worth. Does anyone have experience with this and do you just go with their assessment or how do you find out the FMV of the painting/item?
Thanks in advance!
Heather
Hello, This can be a fairly complicated answer, particularly when it is an item given to be used in an auction. However, to keep it very simple, a donation receipt for a tangible item (in-kind contribution) should describe the item only. It is entirely up to the donor to provide valuation for their tax deduction. Please see IRS publication, specifically pages 18-19.