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.

And if memberhsip includes free admission, which you otherwise would have had to pay when you attended, subtract that too.

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.

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.

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?

I'll buy that but the charity ned not issue a receipt for under $250.

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

Ira Smilovitz Leonia, NJ

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.

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

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.

___ Stu

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.

___ Stu

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.

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.

Yep, that's a 100% discount.

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.

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

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.

___ Stu

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. ___ Stu

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