Tax season tip:

Don’t forget to include the cost of eligible museum memberships with your charitable contribution totals, because at least part of most museum membership fees are tax-deductible.

I used to assume that because I’m reaping the benefits of membership, such as free admission, the cost wouldn’t be considered a charitable contribution.

But that’s not how the IRS sees it. Apparently, you can support a local institution, receive membership benefits AND deduct a portion of the membership cost all at the same time. Win-win-win.

I’ve already confessed I’m not a lawyer and now I’d like to clarify that I’m not a tax accountant either. So I asked the good folks at Richmond-based tax service firm People’s Tax for the “fine print”:

Membership fees paid to museums/gardens … are deductible as charitable contributions. However, if the membership entitles the person to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, taxpayers may only deduct the amount that exceeds the fair market value of the benefit or benefits received. The organizations should provide taxpayers with the amount of membership fees that are tax deductible. Consult your Tax Professional if you have additional questions.

Here are three local examples of institutions whose membership dues are partially or fully deductible:

Virginia Museum of Fine Arts – Family VMFA memberships run $75 and are fully tax-deductible, entitling you to free tickets and previews for special exhibitions, special members-only events, free parking in the VMFA Parking Deck and other museum discounts
These memberships are hot right now, because they get you in to the fabulous Picasso exhibit for free (save $20)!

Science Museum of Virginia – A $95 Edison family membership gets you a year of free admission, special parking, museum discounts, and four passes to films in the IMAX®DOME plus four exhibit guest passes. Of your $95, $65 is tax deductible.
(Tip: If you’re only interested in the free museum admission, you can actually join the Virginia Aviation Museum for $65 per family and receive free Science Museum admission as well!)
Update 3/22/2012: Thanks to Teena for the info that the tax-deductible amount has decreased to $21

Lewis Ginter Botanical Gardens – A family membership costs $85 and includes free admission, garden information and discounts, and two guest passes. All but $16 of the membership cost (in this case $69) is tax deductible
(February is the time to join, because new and renewal membership purchases made online this month are $5 off!)

Most commonly, it’s the value of guest passes or merchandise (like a tote bag) that reduces your tax deductible amount. Any non-profit to which you hold a membership should be able to inform you exactly how much of you fee qualifies as a charitable contribution – just give them a call!

P.S. If you still need tax help, People’s Tax is offering 20% off tax prep services to new clients!