USA Charitable Auction Hosted by a Business

Jul 22, 2020
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United States
Anyone familiar with best practices on Charitable Auctions hosted by a business? We are not a non profit.

Example: A business hosts an auction to raise money for a specific charitable organization... other businesses donate tangible items to be auctioned off... the items are auctioned and "sold" to the highest bidder... the funds for those items are collected (sales taxes included)... the total of those funds are donated to the charitable organization.

How do we properly paper this up? We used shopify for this process btw.

I know this much...
  • We have to collect sales taxes on the auction items sold.
  • We need to provide "Letters of Acknowledgement" to all of the donors, specifying that "no goods or services were provided, in whole or in part, for their contribution"
Do we need to provide any type of documentation to the auction winners?

What else do we need to do or keep in mind?

Thanks in advance!


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