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RECEIPT, RECORDKEEPING, AND REPORTING REQUIREMENTSCertain goods or services may be disregarded when applying these substantiationrules:• Those that have an insubstantial value, in that the fair market value of allthe benefits received is not more than 2 percent of the contribution or $50(indexed for inflation), whichever is less. 48• Those that have an insubstantial value, in that the contribution is $25 ormore (indexed for inflation) and the only benefits received by the donorin return have an aggregate cost of not more than a low-cost article, whichgenerally is one with a cost not in excess of $5 (indexed for inflation). 49• Annual membership benefits offered to an individual for a payment of nomore than $75 per year that consist of rights or privileges that the individualcan exercise frequently during the membership period. 50 This exceptionis not available with respect to payments made in exchange for theopportunity for preferred seating at athletic events of educational institutions,for which there are special rules. 51 Examples of these rights andprivileges include free or discounted admission to the organization’sfacilities or events, free or discounted parking, preferred access to goodsor services, and discounts on the purchase of goods or services.• Annual membership benefits offered to an individual for a payment of nomore than $75 per year that consist of admission to events during themembership period that are open only to members of the donee organization.52 For this rule to apply, the organization must reasonably project thatthe cost per person (excluding any allocable overhead) for each event iswithin the limits established for low-cost articles. 53 The projected cost tothe donee organization is determined at the time the organization firstoffers its membership package for the year.• Goods or services provided by a charitable organization to an entity’semployees in return for a payment to the organization, to the extent thegoods or services provided to each employee are the same as those coveredby the previous two exceptions. 54 When one or more of these goodsor services are provided to a donor, the contemporaneous writtenacknowledgment may indicate that no goods or services were providedin exchange for the donor’s payment.These regulations illustrate the rules pertaining to membership benefits,rights, and privileges. An example is offered concerning a charitable organization48 Reg. § 1.170A-13(f)(8)(i)(A). See Appendix G.49 Reg. § 1.170A-13(f)(8)(i)(A). See Appendix H.50 Reg. § 1.170A-13(f)(8)(i)(B)(1).51 IRC § 170(1); Reg. § 1.170A-13(f)(14).52 Reg. § 1.170A-13(f)(8)(i)(B)(2).53 IRC § 513(h)(2).54 Reg. § 1.170A-13(f)(9)(i). An acknowledgment in a program at a charity-sponsored event identifying a personas a donor to the charity also is an inconsequential benefit with no significant value; “[s]uch privileges as beingassociated with or being known as a benefactor of the [charitable] organization are not significant return benefitsthat have monetary value.” Rev. Rul. 68-432, 1968-2 C.B. 104. 590