the silver guide to non-monetary transactions

2.1. Evaluating the contribution

For organizations, the main challenge is assessing the fair value of goods and services received at no charge. To determine fair value, an organization may rely on market value, appraisal value, or market value of similar supplies and services. This value is established by referencing the purchase price of similar goods and services. Organizations can sometimes waive entrance, service, or membership fees when there is a financial barrier to members and when they have requested assistance. You can track these contributions and account for them in your organization’s revenue and expenses.

See the template Waived Fee in the Toolkit

For registered charities, refer to Section 5, on Charitable donation receipts, and see Diagrams 2 and 3.

See Diagram 2 and Diagram 3 in the Toolkit

See the next section for some concrete examples of how to reasonably estimate fair value.

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