In-Kind Contributions.
52 RCNY § 5-06
in effect§ 5-06 In-Kind Contributions.
(a) An in-kind contribution is an expenditure. An in-kind contribution to a candidate's authorized committee is also considered an expenditure made by such committee, and the amount of the in-kind contribution thus counts toward the candidate's contribution and expenditure limits. An in-kind contribution is received on the date the goods or services are received or rendered, which is presumed to be the date of the associated expenditure, unless the candidate provides evidence to demonstrate that the contribution should be deemed received on a different date.
(b) The value of an in-kind contribution.
(i) Candidates must maintain invoices or other written records supporting the valuation of all in-kind contributions.
(ii) If no invoice is available and obtaining an invoice is not practicable, a candidate must use a reasonable estimate of value in documenting the fair market value of an in-kind contribution.
(A) The fair market value of goods is the price of those goods in the market from which they ordinarily would have been purchased when the goods were received.
(B) The fair market value of services is the hourly or piecework charge for the services at a commercially reasonable rate prevailing when the services were rendered.
(c) Good or service purchased below fair market value. Where goods or services are purchased by a candidate for less than fair market value, the difference between the fair market value when they were received, including any applicable tax, and the amount charged to the candidate is an in-kind contribution.
(d) Extension of credit that is not commercially reasonable is an in-kind contribution.
(i) Generally. A creditor that extends credit to a candidate for a period beyond 90 days has made a contribution equal in value to the credit extended, unless the creditor is making a commercially reasonable attempt to collect the debt.
(ii) Prohibited in-kind contribution. Extension of credit by a corporation, limited liability company, or partnership that is not commercially reasonable and is not made in the regular course of business is presumed to be a prohibited in-kind contribution.
(e) Debt forgiven is an in-kind contribution.
(i) Generally. A debt owed by a candidate, which is forgiven or settled for less than the amount owed, is an in-kind contribution, unless the debt was forgiven or settled by the creditor in a commercially reasonable manner.
(ii) Commercially reasonable treatment of debts. The Board will consider as evidence of commercially reasonable treatment that: (A) all commercially reasonable efforts have been taken to satisfy the outstanding debt; and (B) the creditor has pursued its remedies in the same manner as that customarily employed by creditors of other debtors.
(iii) Advances. An advance is considered to be an in-kind contribution from the individual or entity making the advance until it has been reimbursed by the candidate, and a candidate may not accept an advance from a prohibited source.
(f) Failing to report a liability leads to a presumption of an in-kind contribution. An outstanding liability not contemporaneously reported as outstanding by a candidate may be presumed to be an in-kind contribution to the candidate, if other indicia of a contribution exist.
(Added City Record 8/16/2019, eff. 9/15/2019)
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-121952Fetched: 10/24/2026