@Richard @Patrick, I'm motivated by what you say about deducting all donations. I'm no tax expert whatsoever BUT I have deducted whole donations in the past ($50 to buythissatellite.org for a t-shirt) and nobody ever said nothing............dot dot dot...... But playing it safe and by the books, here's an example from longnow.org (I pay member dues of $8/month which gives me free tickets to all talks/lectures) in which they make the same recommendation regarding "fair market value" (see below). It seems to me that Sudo can and should recommend full deductions, possibly because all member benefits are services (use of the space and shared tools/resources) not goods (no t-shirts or other swag).

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Hello Members,


We’d like to thank all of our members for the support you offer Long Now, through your financial contributions and by sharing your knowledge of the Foundation’s work to foster long-term thinking.


Did you know that many employers offer a gift-matching program? Your membership dues may be eligible; please consider increasing the impact of your gift, and check with your employer’s HR office to learn more.


You may need the following information:

  • Long Now’s tax ID number: 68-0384748

  • Our contact person: Whitney Deatherage whitney@longnow.org

  • The tax deductible amount of your donation


Below you will find a table that you can use to determine how much of the membership dues you paid in 02013 are tax deductible.  Your membership dues each year are considered a tax deductible donation, minus the value of the goods and services you have received.  The Long Now Foundation is a California State and Federal Non-profit organization and our tax exempt number is 68-0384748.  


Add up how many months you were a Member in 02013:


  • Stainless Steel Members $8 for each month in 02013

  • Monel Members $30 for each month in 02013

  • Tungsten Members $90 for each month in 02013

  • Equation of Time Cam Members $2,500 (annual payment)



Then subtract the estimated fair market value of the gifts you received if it is your first year of membership:


  • Stainless Steel Members

    • $15 for your Membership card

  • Monel Members

    • $15 for your Membership card

    • $20 for your Works in Progress book

  • Tungsten Members

    • $15 for your Membership card

    • $20 for your Works in Progress book

    • $20 for your Brian Eno Bells CD

  • Equation of Time Cam Members

    • $15 for your Membership card

    • $20 for your Works in Progress book

    • $20 for your Brian Eno Bells CD

    • $150 for your Equation of Time Cam


Here are some highlights from 02013:



And we're looking forward to some great new services and events in 02014:



We're looking forward to another fascinating year -  thank you again for your continuing support!



On Tue, Feb 25, 2014 at 6:19 PM, eddan.com <eddan@sudoroom.tv> wrote:
Just a note, btw - All those monies deducted by individual contributors (at least), in addition to whatever else) also need to be accounted for in Sudo Room's financial reporting to the IRS.


sent from eddan.com

On Feb 25, 2014, at 5:44 PM, "Patrik D'haeseleer" <patrikd@gmail.com> wrote:

But if membership fees are > $75/yr (and didn't we put a minimum of $10/mo?), that clause would not apply. The lowest membership level at GAFFTA and the Crucible is exactly $75/yr, which is probably why they can make it fully tax deductible. Of course, the Crucible also makes far more from class fees than membership fees.

If you pay more than $75/yr, then the organization needs to give you a written statement explaining how much is deductible. *Except* they don't need to give you a statement if the only things you get are "token items" (such as key chains and T-shirts?) and "membership benefits that can be disregarded" (such admission to the facilities and member events).

If you read that by the letter, that might mean that the organization doesn't need to give you the statement, but you still won't be able to deduct those "certain membership benefits"?

Gah, who wrote this kinda crap? Spaghetti code ain't got nothing on it...


On Tue, Feb 25, 2014 at 3:50 PM, Richard Karnesky <rakarne@sandia.gov> wrote:
On 02/25/2014 04:48 AM, Danny Spitzberg wrote:
You can usually deduct a donation minus the "fair market value" of what
rewards (t-shirts, etc) you get in return ... I'd be curious to see what
gray area works in out favor here with membership dues - if they can be
construed as donations

GAFFTA membership fees are fully tax deductible, as are The Crucible's.

Per IRS Publication 526:

"Certain membership benefits can be disregarded.   Both you and the organization can disregard the following membership benefits if you get them in return for an annual payment of $75 or less.

  1.  Any rights or privileges, other than those discussed under Athletic events , earlier, that you can use frequently while you are a member, such as:

       a. Free or discounted admission to the organization's facilities or events,
...
       c. Preferred access to goods or services,..."
When/if sudo is recognized federally as a 501(c)3, I'd imagine dues would be deductible (unless I'm unaware of some additional tangible benefit of membership).

Some organizations consider t-shirts and similar to be "token items" that do not decrease the deductible amount of your contribution (they cost the organization less than $10.20 each (presumably in quantity) and they bear the name/logo of the organization for donations greater than or equal to $51/yr.


--Rick

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