This module covers basic information on door prizes as part of a fundraising event. The module answers questions such as: Split receipting and door prizes – what is involved? Where can I get more information on how to deal with door prizes?
Introduction
This module covers basic information on door prizes as part of a fundraising event.
The module answers questions such as:
- Split receipting and door prizes – what is involved?
- Where can I get more information on how to deal with door prizes?
Door Prizes – The Basics
If you include door prizes (advantages) as part of your fundraising event, you will have to apply the rules of split receipting to determine the eligible amount on the official donation receipt.
Your Charity will have to:
- determine the fair market value (FMV) of the door prizes, even if they are donated
- determine if the FMV of the door prizes are minimal, i.e. they do not exceed the De Minimis threshold. (10% of the ticket price or $75,whichever is less)
- not include them in calculating the eligible amount, if the door prizes are considered De Minimis
- deduct the FMV of the door prizes per ticket in determining the eligible amount for the donation receipts, if the door prizes exceed the De Minimis threshold
Door Prizes –More Information
For more information on:
- Fair Market Value (FMV) charitycentral.ca/site/?q=node/53
- Split Receipting charitycentral.ca/site/?q=node/56
- De Minimis charitycentral.ca/site/?q=node/58
Notice
Information in this module is provided for general educational purposes and not as legal or accounting advice. Consult a lawyer or accountant for professional advice.
Information is accurate as of 2019.
For changes after this date, consult Canada Revenue Agency.