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
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Art. Illuminated.