Disposing of a Charitable Myth: The Truth About FMV in Live & Silent Auctions

IRS Agent Saying “No, That Is a Myth” – Fair Market Value Misconception Debunked

NOTE: Before writing this blog, I consulted with our Accounting Firm and asked them to conduct extensive research into this as well as other “Charity Myths.” They reported their findings. I then asked ChatGPT to do extensive research into IRS Code and Tax

Nonprofits rely on live auctions and silent auctions to increase revenue at fundraising galas. But one of the most persistent myths in the charity world is the belief that organizations are required to list a “Fair Market Value” (FMV) for each auction item.

This misconception is widespread — and completely incorrect.

BW Unlimited Charity Fundraising, the national leader in consignment auction items, silent auction items, and charity fundraising travel packages, works with thousands of nonprofits across the country. One of the most common questions we receive is:
“Can you give us the FMV of the items we got from you?”

The answer exposes a major misunderstanding in the nonprofit sector.

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A smiling fairy in a green dress and pointed hat hovers over a silent auction table, tapping her glowing wand on a bid sheet as sparkles appear. Above her, bold text reads “FMVs DON’T MAGICALLY APPEAR,” humorously illustrating that Fair Market Values do not appear on their own during charity auctions.

The IRS Does Not Require FMV to Be Listed on Auction Items

Despite what many people believe:

• The IRS does not require a charity to list FMV for every auction item

• The IRS does not mandate printed FMV in auction catalogs or bid sheets

• The IRS does not require auction providers to supply FMV

• The IRS does not regulate auction item pricing, starting bids, or value listings

There is no rule stating that a charity must publish an FMV for each live or silent auction item.

The confusion comes from how people interpret the idea of “value” in relation to donor receipts — but that is separate from whether FMV must be listed on auction items.

For fundraising events, listing FMV is optional, and the IRS does not dictate how a nonprofit should determine it or whether it must appear on auction materials.

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Why BW Unlimited Cannot Provide FMV for Its Auction Items

BW Unlimited Charity Fundraising provides items that:

• Are not sold at retail

• Have no published retail price

• Are not available for public retail purchase

• Do not have a uniform value in different regions, events, or audiences

• Sell at drastically different prices depending on bidding competition

FMV is defined as what a willing buyer will pay a willing seller.
In a charity auction:

👉 The bidders determine that number — not the provider, not retail pricing, not BW Unlimited.

Because our items are consignment-based,
there is no fixed, standardized, or documentable FMV that we can give a charity.

This is why BW Unlimited cannot — and should not — assign a Fair Market Value to items that are not sold commercially.

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Why Our Items Use a Starting Bid Instead of FMV

BW Unlimited sets a Starting Bid equal to 20% above the nonprofit cost for each auction item.

This ensures:

• The charity is profitable from the very first bid

• There is no financial risk

• The charity can sell unlimited quantities when demand is strong

• The bidding naturally sets the “value” of the item during the event

The “value” of an auction item is not predetermined — it is determined in real time by the donors participating in the fundraiser.

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If a Charity Chooses to Estimate FMV, It Must Come From the Charity

If an organization elects to include FMV for internal documentation, acknowledgments, or its own accounting:

• The charity may make its own good-faith estimate

• The estimate is based solely on the charity’s judgment

• BW Unlimited does not and cannot assign FMV

• No IRS rule requires the charity to publish or display FMV for auction purposes

Again — listing FMV is not required for auction operations.
Any estimate provided is strictly a matter of the charity’s own internal process, not an IRS mandate.

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Why This Matters for Nonprofits

Understanding this eliminates confusion and protects charities from unnecessary stress.

Clarifying the FMV myth allows nonprofits to:

✓ Confidently use consignment auction items
✓ Avoid wasting time trying to assign a value where none exists
✓ Focus on fundraising revenue — not imaginary requirements
✓ Work more efficiently with providers like BW Unlimited
✓ Run compliant, high-revenue live and silent auctions

FMV is not the barrier many nonprofits think it is — and it should never delay or complicate auction preparation.

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BW Unlimited: America’s #1 Source for Consignment Auction Items

For nonprofits searching online for:

• charity auction items with no upfront cost

• best silent auction items for fundraising galas

• consignment auction items for nonprofits

• charity travel packages

• risk-free auction items for fundraisers

• high-profit fundraising auction items

• nonprofit auction item providers

BW Unlimited Charity Fundraising is the trusted national leader.

With zero risk, industry-leading item selection, nationwide service, and auction items proven to maximize revenue, BW Unlimited continues to dominate the world of nonprofit fundraising.

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Conclusion: FMV in Charity Auctions Is a Myth That Needs to Be Retired

Here is the truth every charity should know:

• FMV is not required to be listed on auction items

• BW Unlimited cannot provide FMV because these items have no retail price

• Auction bidding naturally determines value in real time

• Any estimate (if a charity chooses to use one) must come from the charity

• The IRS does not regulate FMV listings for auctions

The bottom line:
FMV does not play the role nonprofits think it does — and it should never interfere with successful fundraising.

To learn more or to maximize your silent or live auction revenue, visit:
👉 www.BWUnlimited.com

⚠️ EXPOSED: The Charity Auction Scam You’re Not Supposed to Know About

How One Company Is Flooding the Fundraising World with Counterfeit Autographs and No One’s Stopping Them

Recently, I was contacted by someone about a guitar being auctioned at a charity fundraiser. This wasn’t just any guitar—it was allegedly autographed by eight of the most iconic rock frontmen of all time:

• Robert Plant (Led Zeppelin)

• Roger Daltrey (The Who)

• Steven Tyler (Aerosmith)

• Brian Johnson (AC/DC)

• Axl Rose (Guns N’ Roses)

• Eddie Vedder (Pearl Jam)

• James Hetfield (Metallica)

• Ozzy Osbourne (Black Sabbath)

They asked, “Do you think it’s real?”

I literally laughed out loud.

Why? Because I already knew exactly which charity fundraising company this guitar came from, and I’ve seen this scam too many times before. These companies are experts at slapping together “celebrity auction packages” filled with fake memorabilia, glitter, and hype—and clueless charities fall for it every day.

🚨 The Signature Scam: How It Works

The guitar in question came with a Certificate of Authenticity (COA)—but from who? A company that only authenticates its own items. Let that sink in.

It’s like a counterfeiter opening their own “authentication lab.” It means nothing.

This reminded me of an Inside Edition exposé about a “Country Legends” autographed guitar sold to dozens of nonprofits by a similar company in the same region. Same business model, same items, same scam—just with different names.

Inside Edition acted as though they were a charity and had a bunch of guitars shipped to them. They had the most reputable authenticators in the world examine them and 100% were found to be COUNTERFEIT.

But the worst of all was an alleged “Country Music Legends” autographed guitar signed by some of the most notable country music legends of all time. One of the autographs was allegedly Tammy Wynette. Well, watch the expose and you’ll see exactly what I am talking about:

🧠 So I Asked ChatGPT to Investigate

Together with a close friend, I turned to ChatGPT, which scoured the entire internet and returned an unbiased, comprehensive investigation. Here's what it found:

There is no known listing, past or present, for any guitar authentically signed by all eight of these artists—anywhere in the world.

Only individual or partial-signer guitars (e.g., Hetfield alone, or Ozzy solo) exist. Nothing combining all eight legends. Not in retail. Not in auctions. Not in private collections. Not in museums.

This guitar is fantasy. Period.

🎯 How Rare Would It Be if Real?

According to the report, a guitar signed by all eight would be:

• One-of-a-kind, with no known duplicates

• Worth $100,000 to $150,000 (conservatively)

• Potentially valued at $200,000 to $300,000 with video/photo proof and authentic signatures

And guess what? For a guitar like that to be considered real, it must be authenticated by one of only three accepted autograph authentication companies in the entire memorabilia industry:

🎸 What If It Were Real?

ChatGPT laid out the numbers:

• This would be a museum-level collectible

• Retail value: $100,000 – $150,000

• Premium auction value with provenance: $200,000 – $300,000+

• Estimated number in existence: 0 to 1

Coordinating all eight of these men to hand-sign a single guitar—with matching documentation, video proof, and third-party authentication—is virtually impossible.

So if someone’s offering you one for under $5,000 in a charity auction, it’s either:

• A scam

• A fake

• Or both

✅ The Only REAL Authentication Companies in the Industry

Let’s be very clear.

If an autographed item isn’t authenticated by one of the following third-party services, it does not hold value, credibility, or protection:

1. PSA/DNA (Professional Sports Authenticator)

2. Beckett Authentication Services (BAS)

3. James Spence Authentication (JSA)

These are the only authentication companies accepted by:

• Major auction houses like Heritage, Julien’s, and Sotheby’s

• Insurance carriers for memorabilia collections

• Investment-grade collectors

• Celebrity estate managers and attorneys

Any other “COA” from any other name? Worthless. Especially if the company issuing it is also the one selling the item.

📸 Then I Received the Photo…

The person who contacted me then sent a photo of the actual guitar. I uploaded it into ChatGPT and asked for a professional signature evaluation. Here it is:

Here’s what ChatGPT found:

❌ Stylistic Red Flags

• Robert Plant – Signature lacks the fluid, looping rhythm seen in authentic exemplars

• Axl Rose – Missing his exaggerated loops and signature flare

• James Hetfield – Typically sharp and angular, this version was overly smooth and weak

• Eddie Vedder – Far too legible for his usual minimalist style

• Ozzy Osbourne – No “stacked Zs” or oversized “OZZY” like his known autographs

❌ Technical Red Flags

• Same white paint pen used for all eight signatures, identical flow and pressure

• Signatures spaced evenly in a way that feels staged, not natural

• No overlapping or rotation, which is typical of multi-signer items collected over time

• Squier brand guitar, not Fender or Gibson, which are almost always used for high-value signed memorabilia

🚨 Final Verdict: Highly Likely to Be Counterfeit

Red FlagSeverityNo third-party authentication🔴 CriticalSignature style mismatches🔴 CriticalSame pen used across all🔴 MajorBudget-tier guitar brand🟠 ModerateOverly clean layout🔴 Major

Supporting this, there are multiple listings on the internet exposing the two companies who provide these items. These are:

Did You Purchase an Item from Anthony Nurse or Charity Fundraising Packages? Please Let me Know... - Autograph Live

and:

The Great Charity Scam

💣 This Is Bigger Than One Guitar

This isn’t just about one fake guitar. This is about an entire charity consignment auction scam industry that’s pumping forged celebrity memorabilia into the nonprofit world under the disguise of “no risk fundraising items.”

They know charities are desperate for exciting auction lots.

They know many event planners don’t understand authentication.

And they know that if the item looks impressive and sounds valuable, nobody will ask questions—until it’s too late.

🛡️ How to Protect Your Charity

If you're considering consignment auction packages or celebrity memorabilia for your fundraiser, follow these rules:

• Only trust items authenticated by PSA/DNA, Beckett, or JSA

• Ask for high-res photos of the signatures and authentication labels

• Avoid any company that authenticates its own inventory

• Walk away from any deal that sounds too good to be true—because it is!

🧨 Final Thought: Your Donors Deserve Better

Every time a charity offers fake memorabilia, they’re not just being scammed—they’re unknowingly participating in the scam.

You’re not just risking the money.

You’re risking your reputation, your credibility, your donor trust, and your legal liability.

And when the story breaks—you’ll be the one on the hook.

❗ I’ve Been Warning Charities About This for Years

And I’ll say it again.

If you’re getting your auction items from a consignment company that pushes trash like this—you are the one who will be left holding the bag when it all goes bad.

The glitter, glamour, and fake rockstar ink might look good under the ballroom lights—but once someone starts asking questions, your entire event could fall apart.

🔐 Protect Your Event. Protect Your Name. Protect Your Donors.

And if you're ever unsure—send it to me.

I'll show you what’s real and what’s not.

Because I’ve seen how these companies operate—and I refuse to let another charity fall victim.

Remember, I warned you.