The FMV is the item's sale value on the open market. The IRS allows charitable deductions in excess of the FMV to be claimed as deductions on an income statement. Thus, the FMV is an important valuation for determining a donor’s tax exemption.
We give you a space to enter your Tax ID number and to indicate your organization’s 501(c)(3) status. All receipts generated by Bid Rocket include language indicating tax exemption amounts.
For example, if an iPhone is $400 on the open market, and a guest purchases this item for $550, their receipt will indicate that the guest can deduct any contribution in excess of the item's fair market value, in this case $150.
Auction Item - All auction items (both Silent and Live) have a FMV field you will need to fill in.
Ticket/Sponsorship - This one's tricky. The value of the benefits received for the ticket or sponsorship purchase must be quantified. Since sponsorships often include an advertising option, tickets, or other perks, narrowing down an exact dollar amount is often an approximation. Just do your best.
Donation - True donations always have a $0 Fair Market Value, so the entire donation is tax exempt.