Originally Posted by bustraveler
Correct....there is no tax benefit. This is for financial statement purposes. I think we're just gonna go at it from the point that you can purchase a mile for $0.0275.
That is an OK value, but I would put some more thought into it. Consider the fact that your client would probably receive exactly the same number of donated miles even if Delta lowered the price to 1.5 cents or raised it to 25 cents. If you were receiving miles and then selling them to Delta at Delta's published rate of 2.75 cents, then the 2.75 would mean something, but that is not the case.
I would suggest using 2 cents, for three reasons:
1) A coach ticket with few restrictions other than availability and a stopover being $500 is a reasonable value
2) 2 cents is the most often used figure tossed around
3) 2.75 cents surely must include a nice profit margin; only the desperate buy miles
