Open Forum

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?  

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

Original Message------

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?  

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

The entirety of our membership fee is considered tax-deductible based on the 'intrinsic value' mentioned above. However, for leadership memberships ($1,000 and above), we provide additional benefits that do have strict quantitative value. For those memberships we offer the option of waiving benefits (entire membership cost is tax-deductible) or, if the donor wishes to utilize the benefits, we clearly indicate the portion of the donation that is tax-deductible (e.g. at our $1,000 level we provide benefits valued at $190 making the tax-deductible portion of the gift $810). Attaching an example of our gift agreement for these higher level memberships as an example.

------------------------------
Samilja Heim
Development Director
Colorado Springs Fine Arts Center at Colorado College
Colorado Springs CO
------------------------------

Original Message:
Sent: 02-25-2019 06:54 AM
From: Vivian Zoë
Subject: Portion of Membership fee to declare as donation

My understanding of IRS code is that ALL of membership fees are considered tax deductible....because the value received in return is intrinsic.

Vivian F. Zoë, Director
Slater Memorial Museum
108 Crescent Street, Norwich CT 06360
860-425-5560 vox
860-885-0379 fax

"Inspiration is for amateurs - the rest of us just show up and get to work," Chuck Close, 2003

Please note:  The information contained in this e-mail and any attachments hereto is intended only for the personal and confidential use of the designated recipients.  If the reader/recipient of this message is not the intended recipient, you are hereby notified that you have received this e-mail and all attachments hereto in error and that any review, dissemination, distribution or copying of this e-mail or any of its attachments is strictly prohibited.  If you have received this communication in error, please notify the sender immediately by e-mail and destroy the original message received.  Thank You.

Original Message------

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

If the member receives guest passes, tours or anything with value that must be deducted from the original cost to get to the tax deductible amount.

------------------------------
KarenLee Parmelee
Membership Associate
Grounds for Sculpture
Hamilton NJ
------------------------------

Original Message:
Sent: 02-25-2019 06:54 AM
From: Vivian Zoë
Subject: Portion of Membership fee to declare as donation

My understanding of IRS code is that ALL of membership fees are considered tax deductible....because the value received in return is intrinsic.

Vivian F. Zoë, Director
Slater Memorial Museum
108 Crescent Street, Norwich CT 06360
860-425-5560 vox
860-885-0379 fax

"Inspiration is for amateurs - the rest of us just show up and get to work," Chuck Close, 2003

Please note:  The information contained in this e-mail and any attachments hereto is intended only for the personal and confidential use of the designated recipients.  If the reader/recipient of this message is not the intended recipient, you are hereby notified that you have received this e-mail and all attachments hereto in error and that any review, dissemination, distribution or copying of this e-mail or any of its attachments is strictly prohibited.  If you have received this communication in error, please notify the sender immediately by e-mail and destroy the original message received.  Thank You.

Original Message------

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

Original Message------

If the member receives guest passes, tours or anything with value that must be deducted from the original cost to get to the tax deductible amount.

------------------------------
KarenLee Parmelee
Membership Associate
Grounds for Sculpture
Hamilton NJ
------------------------------

This is very good info. I think since we have free admission, most of the membership should be.  We do offer benefits such as passes to a tour, so the cost of those should be deducted.

Thank you all for your help.
David

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

Original Message:
Sent: 02-25-2019 12:04 PM
From: KarenLee Parmelee
Subject: Portion of Membership fee to declare as donation

If the member receives guest passes, tours or anything with value that must be deducted from the original cost to get to the tax deductible amount.

------------------------------
KarenLee Parmelee
Membership Associate
Grounds for Sculpture
Hamilton NJ

Original Message:
Sent: 02-25-2019 06:54 AM
From: Vivian Zoë
Subject: Portion of Membership fee to declare as donation

My understanding of IRS code is that ALL of membership fees are considered tax deductible....because the value received in return is intrinsic.

Vivian F. Zoë, Director
Slater Memorial Museum
108 Crescent Street, Norwich CT 06360
860-425-5560 vox
860-885-0379 fax

"Inspiration is for amateurs - the rest of us just show up and get to work," Chuck Close, 2003

Please note:  The information contained in this e-mail and any attachments hereto is intended only for the personal and confidential use of the designated recipients.  If the reader/recipient of this message is not the intended recipient, you are hereby notified that you have received this e-mail and all attachments hereto in error and that any review, dissemination, distribution or copying of this e-mail or any of its attachments is strictly prohibited.  If you have received this communication in error, please notify the sender immediately by e-mail and destroy the original message received.  Thank You.

Original Message------

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

​Here are some IRS guidelines for membership tax deductibility:
- If you have a membership category at $75 and below - the entire amount is considered tax deductible, as benefits are considered deminimus (Unless you are like a Smithsonian where you get a magazine, then you have to deduct the fair market value of that benefit from the amount of the membership.
- Since you all have categories above the $75, you only have to deduct the FMV of benefits NOT offered at the $75 level and below from the higher membership level (eg at the $150 level you might also offer two free guest passes - in that case, if admission is $10, you would have to deduct $20 from the $150, for a tax deductibility amount of $130 at that level.  If you had a benefit of dinner with the Director at the $1000 level, the FMV of a nice dinner for two might be $50 a person, so you would deduct $100 and the tax deductible amount would be $900.)
- separate from the IRS tax deductibility question, we have one client, the Santa Barbara Zoo, who specifically tells all members that $5 of their membership donation goes directly to support their local, California endangered species project to save the California Condor and Channel Island fox - a way to assure their members that they are also supporting important conservation work which is part of the Zoo's mission.

I hope this helps.  This topic and much more is covered in our membership book entitled "Membership Marketing in the Digital Age."

Dana Hines
Membership Consultants
dana@membership-consultants.com

------------------------------
Dana Hines
Vice President Membership Marketing

Membership Consultants
Saint Louis MO
dana@membership-consultants.com
------------------------------

Original Message:
Sent: 02-22-2019 01:28 PM
From: David Lynx
Subject: Portion of Membership fee to declare as donation

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

I have been working on a Corporate Membership plan utilizing elements from several different plans I am familiar with.  Under these plans, based on number of employees, the benefits include free admission for employees and IMMEDIATE family, X number of free hours of event rental space, plus whatever additional fees usually apply and a limited number of invitations to special events, such as exhibit openings.  The value of what the companies would be offered is significant in many cases.  My board seems to disagree that the whole membership cannot be deducted.  This is all useful.

------------------------------
David Beard
Executive Director
USS KIDD Veterans Memorial Museum
Baton Rouge LA
------------------------------

Original Message:
Sent: 02-25-2019 11:50 AM
From: Dana Hines
Subject: Portion of Membership fee to declare as donation

​Here are some IRS guidelines for membership tax deductibility:
- If you have a membership category at $75 and below - the entire amount is considered tax deductible, as benefits are considered deminimus (Unless you are like a Smithsonian where you get a magazine, then you have to deduct the fair market value of that benefit from the amount of the membership.
- Since you all have categories above the $75, you only have to deduct the FMV of benefits NOT offered at the $75 level and below from the higher membership level (eg at the $150 level you might also offer two free guest passes - in that case, if admission is $10, you would have to deduct $20 from the $150, for a tax deductibility amount of $130 at that level.  If you had a benefit of dinner with the Director at the $1000 level, the FMV of a nice dinner for two might be $50 a person, so you would deduct $100 and the tax deductible amount would be $900.)
- separate from the IRS tax deductibility question, we have one client, the Santa Barbara Zoo, who specifically tells all members that $5 of their membership donation goes directly to support their local, California endangered species project to save the California Condor and Channel Island fox - a way to assure their members that they are also supporting important conservation work which is part of the Zoo's mission.

I hope this helps.  This topic and much more is covered in our membership book entitled "Membership Marketing in the Digital Age."

Dana Hines
Membership Consultants
dana@membership-consultants.com

------------------------------
Dana Hines
Vice President Membership Marketing

Membership Consultants
Saint Louis MO
dana@membership-consultants.com

Original Message:
Sent: 02-22-2019 01:28 PM
From: David Lynx
Subject: Portion of Membership fee to declare as donation

I have been at a museum before where we outlined what part of a membership fee could be used as a donation.  Does anyone have a policy like this?

For example a Corporate Membership at 1,000.  COuldn't that be considered a donation?

I remember had some kind of fee for membership, amount that was considered their benefits.. then the rest was donation.

------------------------------
David Lynx MLS
Director
Larson Gallery
Yakima WA
------------------------------

Original Message------

I have been working on a Corporate Membership plan utilizing elements from several different plans I am familiar with.  Under these plans, based on number of employees, the benefits include free admission for employees and IMMEDIATE family, X number of free hours of event rental space, plus whatever additional fees usually apply and a limited number of invitations to special events, such as exhibit openings.  The value of what the companies would be offered is significant in many cases.  My board seems to disagree that the whole membership cannot be deducted.  This is all useful.

------------------------------
David Beard
Executive Director
USS KIDD Veterans Memorial Museum
Baton Rouge LA
------------------------------