When making a good faith estimate of the value of goods or services, the regulations provide that "any reasonable methodology" will suffice. Assigning a value that is within the range of typical retail prices will be accepted, even if the charity chooses the lower end of the price range. When the goods or services are unique, the estimate of fair market value may be made based upon the fair market values of similar merchandise or services. A value should always be assigned.

How should "Priceless" items be valued?

1. Artwork created by children is limited to the cost of materials.

    

2. A meal with a celebrity. The celebrity does not add real value to the event and therefore the value is determined on the price of the food, wine, services and the cost of preparing and serving a similar meal in a restaurant.

    

3. What is the value of frequent flyer miles? Most airlines have established a price, around 2.5 cents/mile at which they "sell" frequent flyer miles.