26 November 2010

Auction Unwanted Items, Raise Funds for Charity

This is a clever way of incentivising reuse and raising funds for charity - when the proceeds from successful auctions are deposited into the charity's bank account, the seller receives a receipt enabling them to claim a tax deduction.

Reposted in full from ProBono Australia, 25 November 2010

Australian community organisations are benefiting from an initiative, which enables people and companies to donate and sell goods and services online with the proceeds going to their preferred charity.

AidArena has been established by a group of Queensland business people and developed over the past two years. AidArena provides an online market place to help charities nationwide by capitalising on the value of items often thrown or given away by householders.

AidArena Spokesman Don MacMillan says the online platform is excited to provide an equal opportunity for all Australian Charities, regardless of their size, or nature.
He says the Salvation Army, the RSPCA and CanTeen are among the high profile charities to join forces with AidArena. However, AidArena is available to any organisation with a DGR status, including school funds.

MacMillan says the motivation for setting up AidArena was to assist a wide variety of charities in challenging economic times and help fill the donation shortfall by utilising goods and services rather than seeking cash.

The concept of AidArena was to provide a means for people and companies to donate goods and services while receiving a tax benefit. A tax deductible receipt is issued for the full sale price of the donated item when the resulting cash donation is deposited into the bank account of the chosen charity.

MacMillan says individuals can donate any household items they aren’t using anymore such as appliances or other electrical goods, sporting equipment, furniture, art works or valuables such as jewellery.

He says instead of donating money, companies can donate obsolete or dead stock and feel great that their goods and services are being auctioned for a good cause.

AidArena uses PayPal to provide buyers with a secure online account for the payment of items. Distribution of funds is handled by AidArena, which allows the charities to seamlessly receive the funds directly into their account.

AidArena is free for everyone to use, there are no joining or subscription fees. All donated items are being welcomed but must have a starting value of $9 and already high value items have been listed.

MacMillan says besides donating goods; trade, business or professional people, could auction their services online to raise funds for charity. The donor creates an online voucher and when successfully sold it is automatically emailed to the winning bidder.

He says the AidArena website – www.aidarena.com – was designed to be easy to use and navigate even for people with limited online skills, and if donors can use a digital camera and a computer they are well on their way to enjoying tax effective giving.

AidArena is free for everyone to use, there are no joining or subscription fees. AidArena will take care of all the administration work, monitor the auctions, and will transfer the funds raised (less the administration fee that ranges from as little as 4.4% to 14% depending on the final sale price) to the charity.

AidArena asks that all charities involved promote AidArena to their support base and corporate sponsors and encourage them to donate items for auction on their behalf.

Charities, buyers, and donors, and the general public, are encouraged to follow AidArena on Facebook (http://www.facebook.com/aidarena) and Twitter (http://twitter.com/#!/AidArena).

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