D12. What is the “de minimis” threshold and why is it important?

D12. What is the “de minimis” threshold and why is it important?


Short answer

The de minimis threshold rule allows a donor to receive an official donation receipt for the full amount, when the advantage that the donor receives does not exceed the lesser of $75 or 10 per cent of the amount of the gift to the registered charity.

Example

A museum gives small gifts to acknowledge donations of certain amounts:
  • For a $150 donation, donors receive a calendar worth $14
  • For a $200 donation, donors receive a tote bag worth $25
  • For a $1,000 donation, donors receive a gift certificate worth $100

Can the museum issue donation receipts for these gifts?


The $14 calendar is worth less than the lesser of $75 or $15 (10 per cent of the $150 donation) and is therefore not considered an advantage.
An official receipt can be issued for $150.

The $25 tote bag is worth more than the lesser of $75 or $20 (10 per cent of the $200 donation) and must be considered an advantage.
An official receipt can be issued for $175.

The $100 gift certificate is greater than the lesser of $75 or $100 (10 per cent of the $1,000 donation) and must be considered an advantage.
An official receipt can be issued for $900.