How is value-in-kind (VIK) sponsorship valued?

• A. Cash sponsorship only.
• B. In-kind contributions; valued by fair market value of goods/services provided.
• C. Based on sponsor's previous deals.
• D. Shared among all partners equally.

Answer: (B)

Value-in-kind sponsorship is valued by the fair market value of the goods or services provided. In-kind contributions are non-cash support—such as equipment, products, or professional services—and their worth is determined by what those items would cost in an open market transaction between willing buyers and sellers. This objective measure gives a reliable basis for budgeting, revenue recognition, and evaluating the sponsorship’s impact. Valuation is typically supported by invoices, standard industry rates, or third‑party appraisals to ensure consistency and comparability across deals. Using fair market value helps reflect the true benefit to the recipient and keeps the measurement aligned with real market prices rather than assumptions.