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  • 1.  Tax deductibility of membership benefits

    Posted 08-29-2018 10:14 AM

    We are reviewing tax deductibility of membership benefits at different levels.  I would like to hear your thoughts on the following:

     

    For unlimited benefits, such as free parking, discount on museum shop, unlimited free admission, there is no tax deductible amount, per IRS.  However, here is where I would like to hear your thoughts-at certain levels of membership we offer free guest passes, for an example it might be 10 free guest passes, or at a  higher membership level, 20 free guest passes.  If you do the same, to you assign a FMV and deduct from the tax deductible amount?

     

    Also, we give away exhibition catalogues at certain level memberships.  Some years there might be 2 catalogues, some years 1 catalogue, and some years 3 or 4 catalogues.  I am wondering if anyone else has a similar situation?  If so, 1. Would you assign a cost to the catalogue and reduce the tax deductible amount by that? And 2. If yes, would you average the amount of catalogues and cost per year and use that averaged cost?

     

    Thanks for any insight.

     

    Janet Fernandez, CPA, CDFA™, CGMA

    Chief Financial Officer

    Parrish Art Museum

    279 Montauk Highway

    Water Mill, NY 11976

     

    T 631-283-2118 ext. 114

    F 631-283-7006

    E fernandezj@parrishart.org

    Web: www.parrishart.org

    Twitter: @ParrishArt

    Facebook: Parrish Art Museum

    Art. Illuminated.

     

    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more


  • 2.  RE: Tax deductibility of membership benefits

    Posted 08-30-2018 08:21 AM
    We assign FMV for our guest passes, using the standard adult admission price. For your exhibition catalogues, I would think that using the average value of what you've done over the past several years is a good approach. (We did something similar to account for the value of being invited to members-only exhibition openings.)

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    Tony Millet
    Chief Financial Officer
    Natural History Museum of Utah - University of Utah
    Salt Lake City UT
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    AAM Annual Meeting & MuseumExpo, Baltimore, May 16-19, 2024, click to learn more