Non-deductibility disclosure

Contributions to political candidates, campaigns, parties and political action committees are not deductible as charitable contributions. This is settled and unambiguous, and it applies to every dollar.

What is not deductible

• The bid on an auction item, in full
• Any portion of the bid above the item's fair market value — the split that makes a charity auction partly deductible does not exist here
• A donated item's value, for the person who donated it
• A ticket, a table, a sponsorship or a meal
• Volunteer expenses incurred for the campaign
• And a business's payment, which is also generally not a deductible business expense for political purposes

That last point is worth flagging to business supporters specifically. Some assume a political sponsorship is advertising and therefore deductible, and it generally is not.

Where the statement has to appear

Requirements vary by jurisdiction, and committees are commonly required to state non-deductibility on solicitations. The practical answer is to put it everywhere rather than to work out the minimum.

• The auction landing page, above the fold
• Every item page or the catalogue footer
• The confirmation email a winner receives
• The receipt or acknowledgement
• Event tickets, invitations and sponsorship forms
• Emails, texts and social posts soliciting bids

Write it plainly

"Contributions to [committee] are not tax deductible for federal income tax purposes" is the standard shape. Confirm the exact wording your jurisdiction expects, then use it verbatim everywhere rather than paraphrasing it differently in each place.

• Do not bury it in a footer nobody reads if the requirement is that it be conspicuous
• Do not add "consult your tax advisor" as though the answer were uncertain — it is not
• Do not describe the committee as a nonprofit, which some are but not in the sense a donor will hear
• And never issue anything resembling a charitable receipt

The disclaimer is a different requirement

Do not confuse this with the "paid for by" disclaimer that jurisdictions require on political communications. They are separate obligations, they say different things, and an auction page frequently needs both.

The communications disclaimer is covered in other legal requirements.

Say it as information, not apology

A practical note. Political donors overwhelmingly know they are not getting a deduction and are not giving for one, so the disclosure costs the committee nothing — and stating it confidently signals that the operation is run properly.

A committee that is vague about it invites exactly the suspicion it is trying to avoid.

Brief anybody who talks to donors

Volunteers and staff will be asked, and an improvised "I think the part above the value might be" is a compliance problem and a misled donor at once.

One sentence, memorised, and a referral to the treasurer for anything further.

General information, not legal advice, and campaign finance law differs by jurisdiction and by office. Contribution limits, prohibited sources, disclosure and reporting are enforced with real penalties — your committee's own counsel or compliance professional decides how any of this applies before you run anything.