When a donor receives something in exchange for their contribution (“quid pro quo contribution”), that donor is only entitled to a tax deduction for the amount contributed in excess of what the donor received in exchange. These types of donations are "partially-deductible."
For example, if your project hosts a fundraising event and sells tickets to the event for $250, and provides food and refreshments with a fair market value of $75, then only $175 of the ticket price is tax-deductible for the donor.
Your project is responsible for making a good faith estimate of the fair market value of any goods and/or services received by the donor in exchange for their contribution. You should report the value of the goods and/or services to your donors and to Community Partners. You may estimate the value of goods or services that generally are not commercially available by referring to the market value of similar or comparable goods and/or services.
Each time you receive a partially-deductible donation, please report the fair market value of the donation to Community Partners on the deposit form or by emailing donations@CommunityPartners.org.