cash contribution is a contribution that consumes an individual
participant’s actual cash, usually in the form of an unreimbursed expense or
cash expenditure from the company account. A cash contribution can also be
tangible property with cash value like equipment or supplies. The formula to
determine slices is as follows:
Slices = Fair Market Value x Cash
If you’re dealing with actual cash, then the fair market value is
equal to the amount of cash spent. If
the cash hasn’t been spent, it’s not at risk if it’s just sitting in the bank.
Slices are only allocated when the cash is spent.