comped rooms for Board

[ATXMember]

We are a non-profit membership organization, with a volunteer Board. Often a hotel will offer a few comped rooms when we book our conferences. If we let a Board member have one of our comped rooms at an event, do we have to report it as income on a 1099 if the cost a the same room would have been more than $600?

[Wnhough]

I do not think so UNLESS the NPO makes a profitby using the comped hotel room( say by renting it to a reg client for money or etc) . Because these activities are nonprofitable in nature, they do not jeopardize the group's tax-exempt status, and the money value of the comped room from is not taxable. If a nonprofit organization engages in activities that are unrelated to their basic purpose, they are required to pay income taxes on that money. For example,say, if nonprofit organization A was formed to provide shelter for the homeless and it makes some money selling bicycles, that income may be eligible for income tax purposes.