1099 Tax Question

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cleemark

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My jurisdiction is: Washington, USA

I belong to a private, non-profit golf club. Recently, they had a Membership Drive. The incentive was for current members to get $30 off their dues for 12months for every new member they sponsored. Some members have brought in multiple new members. Is the incentive considered monetary compensation, since they have had their dues reduced; and should a 1099 be issued to those members that have taken advantage of this incentive? As an alternative to money being deducted monthly, would a non-accumulative dollars-off certificate for food in the dining room or against merchandise in the Pro Shop been a better option, and would the certificates be considered monetary compensation?
 
I'm not a tax specialist and perhaps someone else here might be able to answer. If you're providing discount coupons I'm not sure if that makes much of a difference. It's a very good question.
 
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