how to report non-profit memberships

Schedule A, but you must subtract the FMV of the stuff you received
from them, like T shirts, discounts, magazine subscriptions, DVD's,
etc.  Ask them for FMV.

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And if memberhsip includes free admission, which you otherwise
would have had to pay when you attended, subtract that too.
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ArtKamlet  at  a o l dot c o m  Columbus OH  K2PZH

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Art - I responded just before your reply hit. I agree the attendance
should be taken into account, but isn't it for the institution to
produce that letter? If it states "no value", who am I to argue?

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I'll buy that but the charity ned not issue a receipt for under $250.
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ArtKamlet  at  a o l dot c o m  Columbus OH  K2PZH

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If any goods or services are provided in exchange for the donation, the receipt
threshold is $75, not $250.

Ira Smilovitz
Leonia, NJ

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receipt threshold is $75, not $250.

I looked. Aquarium Membership. Family Membership was $135, and they
wrote 'value of benefit' $15.50 which is crazy as it's $84 to get 4
people in. So after the second visit I'm ahead and $120 is a deduction.
Honestly, if I were the IRS, I'd ask where $15.50 comes from, with one
adult admission $23.

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Just because and  adult admission costs $23 doesn't mean it is worth it.
Some of that might be a donation (forced, sure).

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If someone who is not a member pays that, that's the market value.  
Remember that market value is defined as what a willing buyer pays a
willing seller, with neither under a compulsion to buy or sell.

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Stu
http://DownToEarthLawyer.com  

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If a public aquarium (or something else) of equal status (?) costs $10, and
this costs $15, I would suggest that the value is $10 and the $5 is a
donation.  Even if compelled.

If you donate to your PBS station and get a coffee cup as a thank you, it
doesn't mean the coffee cup is equal to the amount of your donation.

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The value is an issue of fact.  If everyone who goes, supporters,
members or not, pays $15, it's probably more valuable to people who
go there than another place that charges $10.


But you're  not donating to get the coffee.  You're donating to
support your station.  The question is which comes first, and what
would someone pay who has no interest in supporting the organization
in the abstract.

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Stu
http://DownToEarthLawyer.com  

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My guess is that they mean $15.50 per person in the family.  It would
be less than admission because not everyone actually attends (and if
they do it might not be for some time), which reduces the average
value.

Again, that's a complete guess.  But it's the only thing that makes
sense to me.

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Stu
http://DownToEarthLawyer.com  

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They obviously have to make some assumptions and estimates when valuing
these things.  If membership allows unlimited attendance, you could
conceivably go every day of the year, which would be $21 * 365 = over
$7600 per person.  But it would be ridiculous to value a $135 membership
as this much.

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Barry Margolin
Arlington, MA

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Often one can get Entertainment coupons, buy one get one free.

I agree that charities should provide the FMV of good received.
Ideally they should track how many times you came in for free/reduced
admission, and send you a letter at the end of the year saying what
the value of the ultimate donation was, but this would be burdensome
for the charities and not make a dent in the grand scheme of things.

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Normally gifts have to be valued at the time of the gift.  So
actuarial or other assumptions/calculations have to be used to
determine a reasonable value in some cases.
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Stu
http://DownToEarthLawyer.com  

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Yep, that's a 100% discount.

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Agreed. The institution should acknowledge the donation and tell you
FMV. If it's for a museum or aquarium, it may very well be 'no FMV' but
either way, they should have spelled it out in the receipt/acknowledgement.

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If the charity's receipt includes a FMV amount, are you allowed to rely
on it even if you have a suspicion that the amount that you personally
received was greater, e.g., your kid demands that you go to the zoo
every week?

R's,
John

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Memberships are not deductible.

If any of the non-profits qualify as charities (e.g. PBS), then you may
have a charitable contribution for PART of your membership.  Did you
receive anyting in return?

Note that not all non-profit groups qualify as charities.

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See Reg §1.170A-1(h)(3).  The value of services that is disregarded
includes annual membership benefits offered for a payment of $75 or
less per year that the taxpayer can exercise frequently during the
membership period, such as free or discounted admission to the
organization's facilities, free or discounted parking, preferred
access to or discounts on the purchase of goods or services.

If you paid $75 or less for an annual membership, you do not need to
reduce your contribution by the real or estimated value of free or
discounted admission, discounts at the gift store, etc.

Katie in San Diego

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