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Fair market value and what's deductible

Fair market value is what a buyer gets for a ticket, like the dinner. Anything paid above it is a gift, which receipts show as tax deductible once your org says it's a 501(c)(3).

On this page

When a nonprofit sells a ticket for more than it's worth, the difference is a gift. Gala Under the Stars sells a $250 seat with an $80 dinner: the dinner is the fair market value, and the other $170 is a charitable gift the buyer can deduct.

Set it on a ticket

  1. 1
    In the event, open Sales → Tickets and click the ticket.
  2. 2
    Under Price, type the Fair market value: what the buyer gets, such as dinner.
  3. 3
    Read the line under it. It says how much of each ticket receipts show as tax deductible.
  4. 4
    Click Save.

Blank, zero, or an amount

Fair market valueWhat it meansReceipts show
BlankYou didn't declare one. The whole price is what the buyer got.Nothing deductible
0The buyer gets nothing of value for the price.The whole price as deductible
An amountThe buyer gets that much.The price minus that amount as deductible

A value at or above the price means nothing is deductible.

What the receipt says

Turn on We're a 501(c)(3) organization under Tax receipts in Settings → General, and add your Legal name and EIN. Then the buyer's order confirmation email and order page carry a statement such as: "Of your $250 payment, $170 is tax deductible to the extent allowed by law. You received goods or services worth $80." A line under it names your org as a 501(c)(3) with its EIN.

Without that switch, or when nothing on the order is deductible, there's no statement.

How the money is booked

On a paid ticket with a fair market value, Ovante books the value as the ticket and the rest as a gift:

  • Revenue counts the $80.
  • Donations count the $170, and so do the contact's giving and your CRM.
  • The buyer still sees one ticket at $250 on their order page.

A promo code comes off the gift first. Tickets booked before Oct 23, 2026 stay as they were.

When
A buyer pays more than a ticket's fair market value
Then
Ovante books the difference as a gift: revenue counts the ticket's value and Donations count the rest. The buyer still sees the full price on their order.
When
A sponsorship level sells
Then
Each seat it includes is a ticket at the admission's value, and the rest of the price is a sponsorship gift. That's why most sponsorship money shows under Donations, not Revenue.
Every rule in How Ovante decides
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Updated Oct 25, 2026

Related

Tax receiptsTell Ovante you're a 501(c)(3), and the buyer's confirmation email and order page state how much of their payment is tax deductible, with your legal name and EIN.Gifts above a ticket's valueWhen a buyer pays more for a ticket than its fair market value, Ovante books the ticket at its value and the rest as a gift. The buyer still sees the full price.Add a ticket typeA ticket type is one kind of ticket, with its own name, price and quantity. Add one under Sales, Tickets; leave the quantity blank to sell without a limit.Sponsorship money shows under DonationsA sponsorship splits into seats, booked as tickets at the admission's value, and a gift for the rest. Revenue counts the seats; Donations count the gift.
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