[sudo-discuss] Taxes
Patrik D'haeseleer
patrikd at gmail.com
Wed Feb 26 12:52:30 PST 2014
Yep, that's a good example of the kind of statement the non-profit has to
provide you. Although I still can't wrap my head around whether or not you
can deduct membership benefits such as access to the space if you pay
*more* than $75/yr.
Do note that the only way you can fully deduct "token items" is when the
organization *informs you that you can deduct your payment in full*. That's
spelled out explicitly in Pub 526 (page 4, bottom left). It's entirely up
to the organization to do the math to figure out whether a T-shirt
qualifies as a "token item" and to inform you if it does. Not something the
IRS wants you to decide on your own.
Here's the guidelines for the organization to follow, to decide whether the
value of an item or benefit is insubstantial, and can be counted as a
"token item":
http://www.irs.gov/pub/irs-tege/rp_1990-12.pdf
http://www.irs.gov/pub/irs-tege/rp92_49.pdf
http://www.irs.gov/pub/irs-drop/RP-12-41.pdf (Section 3.14)
In particular:
"The payment is $25 (adjusted for inflation as described below) or more
and the only benefits received in connection with the payment are token
items
(bookmarks, calendars, key chains, mugs, posters, tee shirts, etc.) bearing
the
organization's name or logo. The cost (as opposed to fair market value) of
all of the
benefits received by a donor must, in the aggregate, be within the limits
established for
'low cost articles' under section 513(h)(2) of the Code."
"For taxable years beginning in 2013, for purposes of defining
the term "unrelated trade or business" for certain exempt organizations
under
ยง 513(h)(2), "low cost articles" are articles costing $10.20 or less."
So if the organization offers a $10 or less T-shirt with a logo, for a
donation of $25 or more, then it can count as a "token item". But it does
need to be within the context of a fund-raising campaign, and the
organization must still tell the donors how much of their payment is a
deductible contribution.
Patrik
<cya> I am not a CPA, and this is not official financial or legal advice.
Consult your own personal bureaucrat. Just trying to figure this out for
myself, because we'll need to know this crap for Counter Culture Labs as
well. </cya>
On Wed, Feb 26, 2014 at 12:06 PM, Danny Spitzberg <stationaery at gmail.com>wrote:
> @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).
>
> ----
>
>
> 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 at 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:
>
>
> -
>
> 854 new Members joined Long Now in 02013, and we exceeded our goal of
> 5,000 Members
> -
>
> 12 Seminars <http://longnow.org/seminars/> to attend, listen to live<http://longnow.org/live/>,
> and view online
> -
>
> Newly re-designed Seminar pages <http://longnow.org/seminars/> with
> easier search, sharable highlights and more
> -
>
> Construction begins<http://longnow.org/membership/newsletters/02013-september-equinox/#article1>on the Long Now Museum re-design, fundraising
> continues <https://longnow.org/salon/>
> -
>
> Revive and Restore TEDx<http://longnow.org/membership/newsletters/02013-march-equinox/#article2>
> -
>
> PanLex hits a billion translations<http://blog.longnow.org/02013/10/02/panlex-hits-a-billion-translations/>
> -
>
> A Rosetta Disk is en route to comet 67P/Churyumov-Gerasimenko<http://www.esa.int/Our_Activities/Space_Science/Rosetta/Wake_up_Rosetta>on board the ESA Rosetta Mission, scheduled to rendezvous with the comet in
> August 02014
> -
>
> Partnership with the Future of Being Human<http://longnow.org/membership/newsletters/02013-december-solstice/#article7>conference
> -
>
> Manual for Civilization<http://longnow.org/membership/newsletters/02013-june-solstice/#article3>project launched
> -
>
> Dissident Futures<http://blog.longnow.org/02013/10/16/dissident-futures-at-ybca/>partnership with Yerba Buena Center for the Arts
> -
>
> Partnership with swissnex on the Climate Change panel<http://longnow.org/membership/newsletters/02013-december-solstice/#article8>with Saul Griffith, Paul
> Hawken
> -
>
> and IPCC Scientists
> -
>
> Our new Bar Manager, Jennifer Colliau<http://longnow.org/membership/newsletters/02013-december-solstice/#article2>,
> joins the Long Now team
> -
>
> 4 issues of the Quarterly News for Members<http://longnow.org/membership/newsletters/>published online
>
>
> And we're looking forward to some great new services and events in 02014:
>
>
> -
>
> Another great lineup of Seminars <http://longnow.org/seminars/>
> -
>
> Opening of the Long Now Salon <https://longnow.org/salon/> in the
> spring
> -
>
> Broadening the reach of the membership program<https://longnow.org/membership/>and offerings
> -
>
> More partnerships on thought provoking events and programming
> -
>
> and more to be announced in our Quarterly News for Members<http://longnow.org/membership/newsletters/>
>
>
> <http://longnow.org/membership/newsletters/>
>
> 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 at 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 at 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...
>>
>> 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
>>>
>>
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>
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