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  • 1.  (Musuem) Membership Payments from DAFs / Family Foundations / Etc.

    Posted 06-07-2023 09:35 AM

    We're working through our processes on memberships to our museum, and I'm trying to understand a small, but complicated point.

    As I understand it, any "frequent use" benefits (free admission, etc) offered at a $75-or-lower membership level are disregarded from benefit-value calculations for all memberships at that level and higher.

    At the upper tiers, however, we have donors who will seek to apply contributions made through DAFs, family foundations, and the like towards their "membership".

    Generally, DAFs and Foundations wouldn't be able to receive any benefit value for their contributions... but there's no value here?  There's also the question of assigning the benefit (but is there a benefit if there is no value?).  Or is it just simply, no, not permitted whatsoever?

    I'd appreciate any help.  Also, if other folks are dealing with restrictions on this, are you requiring major donors to make additional / direct payments for memberships?  How is that working for you?



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    Mark Daley
    Purchase College Foundation
    mark.daley@purchase.edu
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  • 2.  RE: (Musuem) Membership Payments from DAFs / Family Foundations / Etc.

    Posted 06-07-2023 11:39 AM
    DAFs can pay for memberships that are 100% tax-deductible. This includes and is consistent with the rules for disregarding certain benefits in Pub 526 - if a benefit is incidental or disregarded by rule, it won't count as a private benefit.

    See Fidelity's note: https://www.fidelitycharitable.org/faqs/all/grant-membership.html


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 3.  RE: (Musuem) Membership Payments from DAFs / Family Foundations / Etc.

    Posted 06-07-2023 12:18 PM

    Thanks, Isaac.  That's very helpful.



    ------------------------------
    Mark Daley
    Purchase College Foundation
    mark.daley@purchase.edu
    ------------------------------