< Back to the Resource Gallery

Reporting Fair Market Value and Revenue for Nonprofits

Article | October 30, 2025 | Atchley & Associates LLP


When completing Schedule G of the Form 990,?nonprofits must report the fair market value (FMV) of non-cash prizes and the value of goods or services provided at special fundraising events. This helps differentiate the portion that would be considered true contributions from the amounts received in the form of goods and services (ie. dinner, gifts, etc.)? 

Fair market value for special events 

Nonprofits must report special fundraising events on Schedule G, Part II, if the total gross receipts and contributions from these events exceed $15,000 for the tax year. For each event that brings in more than $5,000, specific details must be provided.? 

Reporting revenue and expenses for special events: 

  • Gross receipts:?You must report the total gross receipts from each event, which includes ticket sales, contributions, and other income, before subtracting any costs. 

  • Contributions:?The total amount of contributions, gifts, and grants received at the event must be reported separately. 

  • Gross income:?Gross income is the difference between the gross receipts and the contributions received at the event. 

  • Non-cash prizes (direct expenses):?The FMV of all non-cash prizes given out at a fundraising event must be entered on Line 5 of Schedule G, Part II. 

  • Other direct expenses:?Other event-related expenses, such as facility rental, food, and entertainment, are also reported here.? 

The importance of FMV:

For fundraising events like galas or auctions, the portion of the ticket price that exceeds the FMV of the meal or other benefits received is considered a charitable contribution and is tax-deductible for the donor. Nonprofits should communicate this to their donors and maintain clear records. The FMV is defined as the price a property would sell for on the open market.? 

Fair market value for gaming activities 

If a nonprofit conducts gaming activities and reports more than $15,000 from them, it must complete Schedule G, Part III. The FMV applies to gaming-related items as well.? 

  • Non-cash prizes:?Similar to fundraising events, the FMV of non-cash prizes paid out for gaming activities, like raffles or bingo, must be reported. 

  • Raffle tickets:?It is important to remember that raffle tickets are generally considered a gaming expense, and their purchase is not a tax-deductible charitable contribution.? 

Valuation for non-cash contributions 

While not on Schedule G, other parts of the Form 990 cover non-cash contributions, and it is important to understand the overall valuation process. 

  • Record keeping:?Nonprofits must maintain detailed records of all non-cash contributions, including the donor's name, a description of the item, and its FMV. 

  • Valuing donated property:?For donated auction items, nonprofits should track both the donor's stated FMV and the final auction price. If the final bid is higher than the donor's FMV, the difference is an additional charitable contribution.? 

Proper valuation and record keeping not only support clear financial reporting on Form 990 and Schedule G but also helps clarify donor tax deductions and uphold the organization’s credibility. Please contact us if you have any questions about compliance in this regard. 

Let's Talk!

Call us at (512) 346-2086 or fill out the form below and we'll contact you to discuss your specific situation.

  • Should be Empty:
  • Topic Name:

Atchley & Associates, LLP is a full-service CPA firm offering attestation, tax, business consulting, accounting services, and political campaign reporting services. We serve thousands of clients in both the public and private sectors.

We are among the largest locally-owned public accounting firms in Austin. We have professionals from diverse backgrounds, who possess in-depth experience within private and public sector organizations. Today we leverage this strength to provide a full range of services, complemented by the personal responsiveness our clients expect and deserve.

For more information on how Atchley & Associates, LLP can assist you, please call (512) 346-2086.

Contact us if you have any questions.

Share this post: