What is Fair Market Value?
According to the IRS, the Fair Market Value (FMV) is the price that something would sell for on the open market.
Because your support of MANNA events includes a donation to the mission, the fair market value of the item exchanged for your purchase (such as tickets or merchandise) is determined by evaluating of what that same item would cost if purchased outside of the charitable sector without a donation element.
There is no set formula, percentage rate, or equation in determining the fair market value. Instead, the fair market value is determined by evaluating the cost or selling price of the item, sales of comparable properties, replacement cost, and opinions of experts.
MANNA can not provide tax guidance or advice regarding your donations and event support.
If you wish apply your event support as a charitable contribution, please review Publication # 561 from the IRS. Generally speaking, the fair market value would be considered the non-tax-deductible portion of your purchase price. Usually, your purchase is tax-deductible to the extent which exceeds the fair market value for all goods exchanged. Donations made directly to MANNA’s mission (i.e. donations that are not exchanged for an item, ticket, pie, etc.) are tax deductible to the extent allowed by law, and in some cases can be considered 100% tax-deductible charitable contributions.
For more information about the fair market value of donations to and event support of MANNA, please contact
Meg Paszko, Development Associate, at 215.496.2662 x138 or mpaszko@mannapa.org.
For information about Fair Market Value and tax-deductibility, please visit the website of the IRS: