Tax Exempt Info for CYA Members (USA)

tax deductableMembers are reminded that their dues expenses are not deductible.  Their boat transportation expenses (fuel and oil) incurred by cruising to an official CYA public event may be deductible, in accordance with advice from their own tax accountant.

Board Members whose presence is required at the annual Board Meeting may deduct reasonable transportation, lodging and meal expense, upon advice of their tax advisor, so long as they are not receiving a stipend. 

Members, other individuals, or entities wishing to donate to a specific fleet or specific event are encouraged to do so.  The precise event name and fleet must be stipulated on the donation, and the funds must be sent to the Executive Treasurer for processing and distribution.  By Board policy, all donations to the CYA, regardless of fleet, are to be submitted to the Executive Treasurer for processing.  Funds specific to a certain fleet will be forwarded to that fleet’s treasurer.  The Executive Treasurer will compose and send the tax acknowledgment letter outlined below for all donations to the CYA.

Donors to tax-exempt organizations have the responsibility to obtain such written acknowledgment for any monetary contribution before the donors can claim a charitable contribution on their federal income tax returns. 

Although it’s a donor’s responsibility to obtain such a written acknowledgment, an organization can assist the donor by providing a timely, written statement containing:

  1. The name of organization
  2. The amount of cash contribution
  3. A description (but not the value) of non-cash contribution
  4. A statement that no goods or services were provided by the organization in return for the contribution, if that was the case
  5. A description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution

Charitable organizations are required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75. Recipient organizations typically send written acknowledgments to all donors immediately, or no later than January 31 of the year following the donation.