American Booksellers Association bookstore members should take note that 95 percent of their ABA membership dues are tax-deductible.
Membership dues paid to the ABA are not tax-deductible as charitable contributions for income tax purposes, but rather as ordinary and necessary business expenses. However, this deductibility is subject to restrictions that are imposed as a result of ABA’s annual lobbying activities, which include the activities of ABA advocacy staff and ABA’s financial support of certain lobbying organizations.
As in years past, ABA is now notifying members that a small portion of their membership dues is not tax-deductible as a result of the association’s lobbying activities, and that, from time to time, ABA must change this level of deductibility. For the 2020 tax year, ABA estimates that the non-deductible portion of dues — i.e. the portion that can be allocated to ABA’s lobbying activities — is 5 percent.
Booksellers with questions about the tax deductibility of their membership dues can contact ABA Chief Financial Officer PK Sindwani.