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  • 1.  FMV - valuing FMV of rewards or sales

    Posted 07-13-2023 12:06 PM

    Hi all,

    Is there a best practice reference that you could direct me to regarding how to calculate FMV for donor rewards (ie, a pair of branded socks for signing up for a recurring gift, or a "free" shirt for a $100 gift) and sales of university items (buy an old yearbook for $75 - $10 is shipping, but what amount is a gift vs. a fmv payment)?

    Thank you,

    Sarah



    ------------------------------
    Sarah Sokora
    University of Dallas
    sdsokora@udallas.edu
    ------------------------------


  • 2.  RE: FMV - valuing FMV of rewards or sales

    Posted 07-13-2023 12:21 PM
    The IRS defines fair market value as what a willing buyer would pay a willing seller. Sometimes you need to make a guess. The apparel is easy as you can look at standard pricing at your school store.

    For items like the book, shipping costs are excluded - only the retail price is considered.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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