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Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 541
Experience:  Tax attorney and accountant
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I am researching how to determine the FMV of benefits that

Customer Question

I am researching how to determine the FMV of benefits that we offer (as a non-profit) to our museum members. I have read through IRS 1771 publication and I am fairly certain most of our benefits fall under the token exception but I am not sure how to get a concrete answer on if I am correct. And I haven't found anything about how to determine a FMV for a coupon for a local business (they gave us permission to give these coupons out on their behalf to our members).
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: EXAMPLE - $150 membership
*Unlimited FREE admission to the galleries
Invitations to Exhibition Preview Openings
Subscription to MOPA's e-newsletter, Snapshot
10% discount on purchases in the MOPA Store
Access to MOPA's exclusive research library, The Dubois Library, that holds 20,000+ items
Discounts on education workshops, programs and classes
Reciprocal admission to 15+ photographic institutions
6 Guest passes
Membership to North American Reciprocal Museums program (NARMP). Reciprocal admission to 350+ cultural organizations nationwide
Community Partner Benefits:
$50 off scanning or printing services at ScanDiego
$25 Gift Certificate (any purchase) to George's Camera
15% off your entire entree at Alchemy Cultural Fare & Cocktails
Discounted one-year subscription to Aperture Magazine
20% off custom framing at The Frame Maker
Flat any-time rate of $109 at The Sofia Hotel
$50 off any photography class with early registration at UC San Diego Extension
2-for-1 tickets at all 4ARTS partner organizations (MOPA, Malashock Dance, Cygnet Theatre & Mainly Mozart)
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
$150 MembershipI think these all fall under Membership Benefit Exceptions:• Unlimited FREE admission to the galleries
• Invitations to Exhibition Preview Openings (very cheap events I am fairly certain under the low-cost article)
• Subscription to MOPA's e-newsletter, Snapshot
• 10% discount on purchases in the MOPA Store
• Access to MOPA's exclusive research library, The Dubois Library, that holds 20,000+ items
• Discounts on education workshops, programs and classes
• Reciprocal admission to 15+ photographic institutions
• Membership to North American Reciprocal Museums program (NARMP). Reciprocal admission to 350+ cultural organizations nationwide______These are the ones I am confused about in terms of FMV, do they fall under token exception because they cost use near to nothing?*6 Guest passesCommunity Partner Benefits:
• $50 off scanning or printing services at ScanDiego
• 15% off your entire entree at Alchemy Cultural Fare & Cocktails
• Discounted one-year subscription to Aperture Magazine
• 20% off custom framing at The Frame Maker
• Flat any-time rate of $109 at The Sofia Hotel
• $50 off any photography class with early registration at UC San Diego Extension
2-for-1 tickets at all 4ARTS partner organizations (MOPA, Malashock Dance, Cygnet Theatre & Mainly Mozart)
_______
• $25 Gift Certificate (any purchase) to George's Camera
I assume this one has a FMV of $25 as it is a gift certificate not a coupon.
Expert:  Mark Anderson replied 1 year ago.

FMV is the just the value that someone would pay for it. It is typically something given in exchange for a donation.

Expert:  Mark Anderson replied 1 year ago.

This just says you need to document it:

https://www.irs.gov/pub/irs-pdf/p1771.pdf

Expert:  Mark Anderson replied 1 year ago.

Here is some info:

https://www.sos.wa.gov/_assets/charities/What%20Not-for-profits%20Need%20to%20Know%20About%20Tax%20Compliance%20Jacobson%20Jarvis%20%282%29.pdf