Fair Market Value and Your Charitable Contribution Deductibility

IRS allows a charitable deduction when payment to a charity exceeds the “Fair Market Value” (FMV) of goods or services received in exchange for the donation. Most donations to UCP are not subject to Fair Market Value exceptions. Donors participating in special events may claim a charitable deduction for the portion of their gift that is above the Fair Market Value of what they received from the activity.                                                                                                                    

Golf Tournaments                                                                                                                          

The estimated FMV for UCP Golf Tournaments $150 per participant. This includes the estimated value of food, drinks, snacks, green fees and goody bag gifts.

The deductible portion of your contribution to a UCP golf tournament is calculated at the value of your contribution less the fair market value of direct/tangible benefits received by the number of participants from your organization. Example: “Y” Corporation makes a contribution of $1,000 to UCP’s tournament. The tangible value of goods and services is $150 per player for a total of $600 for four players. Therefore, the allowable charitable deduction is $400.                                                                                                                                                                

UCP Casual Day                                                                                                               

The UCP T-Shirts are valued at $15.00. Any amount you contribute less the total value of the number of t-shirts you receive is deductible as a charitable contribution                              

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