Flowchart 2: Basic rules for determining the contribution amount

This flowchart shows the basic rules for determining the contribution amount when contributors receive a benefit in exchange for their contribution as part of a fundraising activity.

If the benefit is not commercially available, the full amount given is a contribution. If the benefit is commercially available, determine the fair market value of the benefit before continuing.

Then, if the benefit is commercially available and central to the fundraising activity, deduct the fair market value of the benefit from the amount given to arrive at the contribution amount.

On the other hand, if the benefit is not central to the fundraising activity, determine whether the benefit is significant using the de minimis threshold. If the benefit is significant, deduct the fair market value of the benefit from the amount given to arrive at the contribution amount. If the benefit is not significant, the full amount given is a contribution.