[sudo-discuss] Taxes

[Richard Karnesky]

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