Tax-Deductible Membership Dues FAQ

IUAA membership dues are 80 percent tax deductible as a charitable contribution.

Q: Why are IUAA membership dues 80 percent tax deductible as a charitable contribution, instead of 100 percent?
A: It has been determined that 20 percent of IUAA membership dues go toward items of tangible value, such as the Indiana Alumni Magazine.

Q: Are my dues both federal and state tax deductible?
A: Yes, for federal. State deductibility will depend upon the member’s own state regulations.

Q: When does the tax-deductible status take effect?
A: Tax-deductible status is applicable to membership dues paid on or after Jan. 1, 2009.

Q: Are both annual and life membership dues 80 percent tax deductible?
A: Yes, for the actual payments made, not pledges.

Q: Are Student Alumni Association membership dues tax deductible?
A: No, because the dues-and-benefit structure does not meet the criteria for tax deductibility.

Q: Will I receive a receipt?
A: IRS regulations require payments totaling $250 to be receipted. The IUAA will receipt all life-membership payments made in a calendar year the following January.

Q: What happens if I am on a life-membership payment plan, and I pay part of my dues in one calendar year and the remainder in the following calendar year?
A: The amount you can declare 80 percent tax deductible is the amount you paid during that calendar year. For example, if you make a total of $55 in payments in 2009 and a total of $495 in payments in 2010, then 80 percent of $55 is tax deductible for 2009 and 80 percent of $495 is tax deductible for 2010.

Q: Who can declare the 80 percent tax-deductible credit for gift memberships, the person who pays for the membership or the person receiving the membership?
A: The person who pays for the membership can declare the 80 percent tax-deductible credit.

Q: Will IUAA membership dues now be called gifts or donations?
A: No. They are still called membership dues, with 80 percent tax deductible as a charitable contribution.

Q: Do my tax-deductible member dues count toward the Hoosier athletics priority point system?
A: Yes, membership dues count toward priority points: 5 points for annual and 10 points for life.

Q: Do my membership dues qualify for matching gifts?
A: It depends on the company. Many corporations exclude alumni memberships from their matching gift programs, so members should check their company’s matching gift policies.