Valuing prizes: how to make an honest assessment

Calculating value

Where you are given an auction prize before it is auctioned, you must calculate its value so that you know whether or not to treat it as a donation. A common way to determine the value of an auction prize is to check its price (or the price of a reasonable equivalent). Where there is doubt as to the exact value of an item or service, you should obtain three commercial quotes and use the average of the three.

At auction

Any subsequent donation is made if the successful bidder pays more than the market price of the item or service; the donation element is the difference between the price paid by the buyer and the value of the prize. Winning bids that are donations are always categorised as money donations.

Last updated: 21 November 2023