Author: Joseph Giso and Charles Ciccone
Charitable auctions – live, silent, or online – provide an opportunity to introduce your organization’s mission to the public and generate greater support, as well as attract donations of goods and services and increase revenue. It is also an easy way for a charity to convert a donor’s non-cash property to cash. But, auctions of all varieties bring compliance and risk management issues. For instance, organizations are responsible for recording all fundraising transactions and reporting on their activities – and those that fail to adequately comply may be subject to sizable IRS penalties.