Questionable 503(c)(3) "gift" acknowledgement

Technical topics regarding tax preparation.
#1
Jake  
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1384
Joined:
12-May-2014 3:19pm
Location:
Columbus, Ohio
I purchased a membership as a birthday gift for a person to our local Art Museum.
I received a letter from the Museum thanking me for purchasing this gift membership for this person.

It included this Summary of my contribution:

"Date of Gift: 9/15/2021
Gift Designation: Membership
Gift Amount: $100
Tax-deductible amount: $100

Please retain this information for your tax purposes. Your contribution is fully deductible to the extent allowed by law. The estimated non-deductible value of the goods and service provided in return for you donation is reflected in the tax deductible amount."

Admission to this museum requires the purchase of a ticket - with the exception of one Sunday a month when admission is free (and does not include any special exhibits). "Members" also get free parking.

I cannot see any basis for the Museum advising that this $100 is tax deductible. Thoughts appreciated.
 

#2
Nilodop  
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Pennsylvania
For starters, it's not your membership, so how is it deductible? It's a gift to your friend, not to the museum.

But if you buy a membership in the museum, and it's still required that you buy a ticket for admission, then you get the deduction as they say. Even if you might get other privileges from the membership. Here's a totally non-authoritative but good item to read https://www.americanmuseummembership.or ... _rules.pdf
 

#3
Jake  
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1384
Joined:
12-May-2014 3:19pm
Location:
Columbus, Ohio
Nilodop wrote:For starters, it's not your membership, so how is it deductible? It's a gift to your friend, not to the museum.

But if you buy a membership in the museum, and it's still required that you buy a ticket for admission, then you get the deduction as they say. Even if you might get other privileges from the membership. Here's a totally non-authoritative but good item to read https://www.americanmuseummembership.or ... _rules.pdf


Well, when I donate money in memory of or in honor of a deceased friend to a 501(c)(3) charity, and I receive nothing in value other than the recipients and my good feelings, it is my money and my deduction. But the situation I describe does include 100% good/services in return so my deduction, like yours (pun intended) is that the tax law provides no tax deduction to the giver or the recipient.

Thanks for the reference - I will read and send to the Museum. I would never deduct that $100, I am just trying to protect the Art Museum from getting into trouble by providing erroneous charitable deduction confirmations.
 

#4
sjrcpa  
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6474
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Location:
Maryland
Perhaps the benefit received by the member is de minimis? ($8.60 or some such small amount, indexed annually)
 


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