[sudo-discuss] Taxes

[Patrik D'haeseleer]

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...

http://www.irs.gov/pub/irs-pdf/p526.pdf

Patrik


On Tue, Feb 25, 2014 at 3:50 PM, Richard Karnesky <rakarne at 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
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://sudoroom.org/pipermail/sudo-discuss/attachments/20140225/9ba70977/attachment.html>