09/23/2026
Bad news, in case you didn't already know.
Raffle tickets, auction items, silent auction baskets, here's a tax truth most people don't want to hear, but it's the truth.
Win a raffle prize? Only the amount over fair market value counts as a deduction. IRC Section 170.
Buy a raffle ticket and don't win? Still not deductible, the IRS treats it as a wager, not a gift. Rev. Rul. 67-246.
Won a $100 auction basket worth $20? Only $80 counts as your donation. IRC Section 170.
Nonprofits, your donor receipts need to reflect fair market value, not just what was paid.
Running a fundraiser and want your receipts done right? Comment CLARITY and let's get it squared away.