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