Why would you need to be a "member" of a Charity Organization? There are many arguments for this, and as many against this. We hold the position that a "membership" is not in the best interest of the donor, and for this reason do not offer them. And in most cases, as summarized by the IRS, the "membership" dues are NOT deductible. The donation would have to be significantly higher in value than the benefit received. But in most cases when the benefit recieved is of higher value than the donation, therefore, no deduction.
The following is an excerpt from: fundraising123.org. (Network for Good Learning Center)
"The difference in amount that the member may deduct as a charitable contribution exists because some charities provide goods and services in exchange for dues. The charitable deduction for these payments depends on the benefits given in return for the dues.
When a member receives benefits in return for dues, the general rule is that the dues are not deductible. However, there are exceptions to this rule.
The IRS allows charities to disregard some membership benefits for purposes of calculating the donor's charitable contribution. You may disregard benefits if you offer them for $75 or less per year and if members can exercise those benefits frequently....."
And in cases where an Insurance Benefit is offered in liew of "membership" dues:
"Contributions connected with split-dollar insurance arrangements. You cannot deduct any part of a contribution to a charitable organization if, in connection with the contribution, the organization directly or indirectly pays, has paid, or is expected to pay any premium on any life insurance, annuity, or endowment contract for which you, any member of your family, or any other person chosen by you (other than a qualified charitable organization) is a beneficiary.
Example. You donate money to a charitable organization. The charity uses the money to purchase a cash value life insurance policy. The beneficiaries under the insurance policy include members of your family. Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation."
truckersfinalmile.org urges any potential donor to do your due diligence and review any "membership" offers fine print. What if you miss a payment? Who's administrating the fund? So many questions ...........
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