The Grosse Pointe North Band and Orchestra Boosters has been declared exempt from Federal Income tax under section 501 (c) (3) of the Internal Revenue Code. From the point of view of or our organization, this means that any income that we generate from our activities is not subject to taxation. More importantly, this means that all of your contributions and a portion of your membership fee are deductible on schedule A of your Federal Income tax return.
The reason that only a portion of your membership is deductible is that each membership level is associated with personal benefits such as tickets, merchandise, or CDs. The IRS has ruled that the value of these personal benefits is never deductible. You will receive a letter that details the dollar amount of your membership contribution that can be considered a federal income tax deduction.
Should the deduction attributable to funds that you have allocated to our organization ever be questioned by the Department of Treasury in a federal tax audit, you may be requested to verify the eligibility of the Boosters for that deduction. For your convenience, we have included on our website under the Resources Tab a copy of the IRS determination letter that you will need to prove your assertion.
This same determination letter also may be requested by your employer if your employer offers a program that either lets you name charitable beneficiaries or, alternatively, agrees to match your contributions to charities that you support. It should be further noted that if your employer does agree to make a contribution or match your contribution, these monies count toward the level of your membership.
One final point should be made. If you are a recipient of a grant made by the Boosters, whether it be a scholarship, a grant, a gift, or a trip subsidy the monetary value of this benefit is not taxed to you and need not be referenced on your tax return.