S36. Can an individual who purchases a service at an auction be entitled to a donation receipt for the amount paid that is more than the value of the service received?

S36. Can an individual who purchases a service at an auction be entitled to a donation receipt for the amount paid that is more than the value of the service received?


Short answer

Yes. Where the service has a clearly established fair market value that has been identified to all bidders at the auction before the opening bid, an official donation receipt can be issued to the purchaser of the service for the “eligible amount” where there is an intention to make a gift.

Long answer

The eligible amount is the difference between the amount paid (bid amount) and the amount of advantage received (that is, the value of the service). For example, if an individual successfully bid $40 for a haircut valued at $25, the eligible amount would be $15.