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QUESTION DETAIL
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I have a client that is a non-profit. The non-profit owns a thrift store where donations are made and the sale proceed after expenses help fund the ministry. How do they value their inventory? They haven't been including it on their balance sheet and don't have any records of everything that has been donated and what it's worth.
ANSWER
The BIDaWIZ Team's Answer:
It would be the fair market value. Specifically, according to the IRS, the cost of the item to the non-profit may be the best indication of the item's FMV. Please reference IRC Section 471 and 273A.
