Below you will find answers to the following questions:
- How are donations handled?
- Is there sales tax and how is it handled?
- What items are tax exempt? (No sales tax)
How are donations handled?
- Personal Donations: Most donations are tax NOT deductible. All funds raised are for a specific individual’s personal use for medical expenses. Gift tax reporting from donors is the donor’s responsibility, which is the difference between excess of FMV and the bid amount. Reporting is not required unless the annual limit is exceeded which is $19,000 for a single person or $38,000 if married in 2026). Other Excluded Gifts: Payments made directly to a medical provider for qualified medical expenses on behalf of someone else are not considered taxable gifts, regardless of the amount, and do not count against the annual or lifetime exclusions.
- Non-Profit Donations: Donations for hyperbaric oxygen is the ONLY nonprofit, tax deductible opportunity. “H.O.P.E. for Healing Institute, in San Rafael, manages a Hyperbaric Oxygen Patient Endowment Fund (H.O.P.E. Fund). They are dedicated to providing hyperbaric oxygen therapy (HBOT) to those who cannot afford it, including uninsured individuals, through a funding application process. Qualified applicants can receive partial or full funding for treatments based fund availability for and individual needs for the provision of oxygen in medical-grade, hard-shell chambers. They are a registered 501(c)(3) non-profit organization. (EIN: 26-4647649) (If any auction item is attached to the donation, only the amount exceeding fair market value of the item is allowable for a tax deduction.)
Is there sales tax and how is it handled?
Most items offered at the event are not taxable. In the rare event that there is a physical product, it is taxable and not just for the fair market value of the winning bid, but rather the sales tax is due based on the amount of the bid.
What items are tax exempt? (No sales tax)
- Services: Gift certificates for services (e.g., a massage, dental cleaning, or house painting) are generally not subject to sales tax.
- Cash Donations: Direct donations where no item is received in return are always exempt.
- Tickets: The price of admission to your fundraiser is not taxable.
What you will find in this current presentation: (This is very early drafting stage)
Please email me at Kim@MedFundraiser.org to participate in planning or donate.
