This fact sheet is intended to outline of how donated funds will be processed and used as we progress with the event.

Below we currently offer the following information:

Explanation for Businesses Donating Products or Services
Explanation for Individuals Bidding on Auction Items

Explanation for Businesses Donating Products or Services

Below you will find our thoughts on tax handling strategy. It is important to note that donations of services are exempt from California sales tax, simplifying the process.

FAQs for Businesses Donating

Are donations of services or products tax-deductible?
Approximately 90% of auction items are NOT tax-deductible, as funds go directly to individuals’ medical trust funds.
What are the sales tax implications for my donations?
Sales tax applies to all tangible goods sold at the auction, and the organization will collect and remit it based on the final bid amount. (The tax due on tangible goods will not be on the full market value, but rather the full bid amount offered.)
Will I receive any specific documentation for my donation?
Yes, a Charitable Written Acknowledgment (CWA) will be provided for your records detailing your contribution.
Is there a seller’s permit required for my donation?
The organization plans to hold a temporary seller’s permit for the event; you do not need one unless selling items independently. (This does not apply to donated services.)
What if I incur expenses while donating a service?
You may be able to deduct unreimbursed expenses incurred while providing the service.

Explanation for Individuals Bidding on Auction Items

Bidding helps fund medical expenses, with each winning bid contributing directly to treatment and care for individuals in need.
Below you will find information on the aspects that are helpful to know about.

The most important note is that approximately 90% of auction items are NOT tax-deductible because the proceeds are going toward privately paid medical care, not a 501c3 foundation. (With the exception of hyperbaric oxygen specifically.)

FAQs for Individuals Bidding

Are my bids tax-deductible?
Approximately 90% of auction items are NOT tax-deductible. Only specific donations for hyperbaric oxygen through the H.O.P.E. Fund may be deductible.
Will I have to pay sales tax on my winning bid?
If you are receiving a tangible product yes, sales tax will be added to the final bid amount for tangible items. This applies to the amount of your bid, not the market value. Bids on services are not taxable.
What should I do if I have questions about tax implications?
Consult with a tax advisor for personalized guidance on tax implications, especially concerning gift taxes.
Will I receive any documentation for my winning bid?
Yes, a receipt will be provided outlining your donation and tax deductibility if applicable, especially for amounts over $75.