D13. Does our charity have to consider every advantage in the calculation of the de minimis amount?

D13. Does our charity have to consider every advantage in the calculation of the de minimis amount?


Short answer

No. Not all the advantages are included in calculating the de minimis amount. But all the advantages are included in determining the eligible amount on the official donation receipt.

Long answer

For purposes of calculating the de minimis threshold, CRA distinguishes between conferring advantages that are integral to a fundraising event and those that are secondary. It does so by not including an advantage that is the “object of the event” in the de minimis calculation.. However, this “object of the event” advantage is still included when determining the eligible amount of the donation,

So a charity must first consider what the object of the event is, and what the value associated with the object of the event is. The value of that activity is not to be included in the calculation of the de minimis threshold. However, the value of that activity is taken into account when calculating the eligible amount and determining how much the receipt is issued for.

As well, any elements of an event offered as benefits or consideration in addition to the activity that is the object of the event, for example, T-shirts given to participants in a fundraiser, are taken into account for purposes of calculation of the de minimis threshold.

Example

At a fundraising dinner, while the gourmet dinner is a value received, the object of the event is a meal. If donors pay $100 per ticket for a fundraising dinner and the meal is valued at $45 per person, the official donation receipt should read $55. If there is also a draw for a $50 door prize, it is counted in determining whether the de minimis threshold is surpassed. That is, are the benefits or consideration beyond providing the meal more than $75 or 10 per cent of the ticket price?

Other examples of objects of an event

  • the value of a comparable ticket for a concert;
  • the value of green fees, cart rental, and meal at a golf tournament.
More…

See FAQ D14 and CRA’s Technical News No. 26