How to process people who donate an auction item and then the people who win the item?

Theodore VanPatten
Theodore VanPatten
Sixth Anniversary Kudos 1 Participant Facilitator 1
in Blackbaud Financial Edge NXT® General Discussions

We have a new accountant and I want to find out how others are processing silent auction items donated and then when a donor wins the item.

  1. Previously, we entered the silent auction item into the donor record into RE, but with no amount. We kept the approx amount in a note, but the transaction was zero, just to track and count donations toward the donor counts. Then when someone bought the item, we had approx value on display with the bidding sheet, and we entered a gift transaction into their record in RE and entered the full amount of the winning amount and minus the approx value in the Receipt amount for tax purposes.
  2. Changed - The new account doesn't want any silent auction items entered into RE? This is for both the person donating the item and also for the winning bidder. She did make a good point that the amount bid can be used as the tax-deductible value. So now it's a three-part form for silent auction items. Copy 1 goes to the winner bidder and that is what they use for tax purposes. The other copies come to the office as a backup.

This new process is new to me and I have been doing this for many years. I want to bring this to our executive director to explain that we are losing donor counts and donor activity if we don't enter these transactions. The accountant is my supervisor and I voiced my concern, but she wants it done this way. I informed her that I can “Not Post” the transactions so that they will not be uploaded into FE, but no luck.

Thanks for your help. I need it from FE accountants!

Comments

  • Thomas Walker
    Thomas Walker Blackbaud Employee
    Tenth Anniversary Kudos 2 Name Dropper Participant

    This is a good blog post that covers the accounting treatment of donated items for auction.

  • Theodore VanPatten
    Theodore VanPatten
    Sixth Anniversary Kudos 1 Participant Facilitator 1

    thank you, Thomas, some good things in there that the accounting system would have to manage, but on the donor side, I previously would enter the FMV minus bid amount and if over Value that would be tax-deductible value. But according to my accountant, the new way is just to hand them the slip-on auction day and the value they paid is considered the FMV and tax record.

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