Tax-Deductible Dues

To help incentivize constituents to become a member and maintain their loyalty, your organization may offer exclusive benefits — such as reduced admission, t-shirts, or other merchandise — to thank them for their membership, based on the category or dues paid. Depending on the cost to join a membership and the benefits received, a constituent may be able to deduct some, all, or none of the dues from their taxes as a charitable gift.

• To determine the tax-deductible portion, you generally subtract the value of the benefits received from the cost to join the membership. For dues less than $75, you may disregard “token” benefits such as free or discounted admission or parking, or priority access or discounts to purchase merchandise or services.

• Expensive memberships may be deductible if their dues are notably larger than the benefits received. For example, if your organization offers tiered categories with dues that increase incrementally larger but don’t also increase the benefits received at the same rate, constituents who pay $1000 instead of $100 — such as for the privilege to appear as a Platinum member rather than Bronze — may deduct the difference in the memberships.