The YMCA serves over 10,000 neighbors, making it one of the largest nonprofits in the United States, but you cannot use YMCA membership as a deduction just because of the YMCA's nonprofit status. However, you can deduct money given to the YMCA as long as you do so without receiving benefits or services.
Identification
You cannot deduct a YMCA membership on your taxes because you receive services in return for your dues. The Internal Revenue Service does not let you take a charitable deduction if you receive anything in return, because then it is not a true donation and merely a way to deduct personal expenses.
Donating to the YMCA
Anything above your membership dues usually counts as a tax deduction. The IRS lists the YMCA as a tax-exempt 501(c)(3) company. As with your membership dues, you cannot receive anything of substantial value in return for a standalone donation, such as free membership. However, you might be able to receive token items, such as a towel, or anything else without substantial value. You can usually disregard certain services, such as free parking, in valuing your donation.
Record-Keeping
If you make a tax-deductible donation to the YMCA, ask for a receipt from the YMCA, especially if you make a cash donation of more than $250. If you donate property or use a check, you might need extra record-keeping. For example, for property, you must inform the IRS about how you determined its fair market value or provide a copy of an appraisal.
Tip
Consider a donation to the YMCA as part of your tax planning. You can, for example, get rid of securities and avoid capital gains taxes by giving stocks to your local YMCA. Also, you can deduct the fair market value of your non-cash donation -- up to 30 percent of your personal income. On stock, this is the value the day you make the transfer.
