Are You Making the Most of Your NHLA Membership?

Attention, all NHLA members! You know that being part of NHLA is crucial for your business. From essential resources to industry expertise, we provide what you need to succeed in the hardwood market. But here’s something you might not know: Your NHLA dues, advertising, sponsorships, and even exhibit fees at our convention MAY all be tax-deductible!

Before you start celebrating, remember to always consult your tax professional to make sure you’re handling these deductions correctly and maximizing your tax benefits.

Why NHLA Membership Dues are Different
Let’s get real for a second. NHLA isn’t just another fun industry group. We’re unique because we provide critical, essential business services. That’s why the IRS often sees dues paid to 501(c)(6) organizations like NHLA as ordinary and necessary business expenses. Here’s why NHLA dues stand out:

1. Essential Business Support: Unlike other memberships that might be more about social connections or general networking, NHLA offers tools and services that are vital for doing business in the hardwood industry. From grading rules to specialized training, NHLA is directly tied to your day-to-day operations and industry compliance.
2. Beware of Non-Deductible Portions: Some of your dues may be allocated to lobbying activities, which the IRS considers non-deductible. NHLA automatically contributes 10% of your dues to the Hardwood Federation. Make your tax professional aware.

Talk to Your Tax Pro First!
Navigating tax deductions can be tricky, but your tax advisor is there to help you make sense of it all. Here’s why you should check in with them:

• Clarify IRS Rules: Your tax professional can confirm that your NHLA dues and related expenses meet the IRS’s criteria for “ordinary and necessary” business expenses—something that many other industry memberships do not qualify for.
• Get the Details Right: They’ll help you separate the deductible portions from any non-deductible expenses like lobbying fees, making sure you claim the correct amount.
• Maximize Your Deductions: Beyond membership dues, your tax expert can also help you deduct advertising, sponsorships, and even exhibit fees at our NHLA Convention. These are all expenses tied to promoting your business and making valuable industry connections, which are typically considered deductible business expenses.

What About NHLA’s Inspection Services?
Many NHLA members rely on our Inspection Services for compliance, training, and quality assurance. These services are a key part of doing business in the hardwood industry, and as such, they’re often deductible as ordinary and necessary business expenses. Once again, your tax professional can help ensure you’re claiming these correctly.

NHLA: More Than Just a Membership
We’re not just another industry group. NHLA is THE authority on North American hardwood lumber grading standards, offering tools, education, and guidance that are essential for your business. When you’re part of NHLA, you’re investing in the growth and compliance of your company.

Bottom Line: Consult Before You Deduct!
While NHLA membership dues, advertising, sponsorships, and inspection services are often deductible, every business’s situation is different. That’s why it’s crucial to work with your tax advisor—they’ll make sure you’re taking full advantage of these deductions while staying in line with IRS rules.
Don’t leave money on the table! Connect with your tax professional today to make sure you’re getting the most out of everything NHLA has to offer.

John Hester
Chief Development Officer