FundSvcs Community

Our nonprofit is planning a free, community event and approached a handful of companies with small sponsorship opportunities. (These are well within the sponsorship definition of the IRS and not the "advertising" definition.) A representative at an insurance company told me it was illegal for insurance companies to sponsor an event for an entity that was also their client (which is our case here). He mentioned it would fall under rebating statutes which are illegal in the state of Texas. I have never heard of this and a search online didn't produce any helpful information. Can anyone help me with this? I certainly want to avoid suggesting anything unethical or illegal. Thanks, Ruth Jones, CFRE

If they are telling you it is illegal then I would believe them. They would know. I am not familiar with Texas legal statues so you might want to ask your lawyer. But I personally would not want to press this issue with someone who feels that they are following the law. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Fri, Jan 25, 2019 at 2:38 PM Ruth Jones < 000000024edc078f-dmarc-request@listserv.fundsvcs.org> wrote: > Our nonprofit is planning a free, community event and approached a handful > of companies with small sponsorship opportunities. (These are well within > the sponsorship definition of the IRS and not the "advertising" > definition.) A representative at an insurance company told me it was > illegal for insurance companies to sponsor an event for an entity that was > also their client (which is our case here). He mentioned it would fall > under rebating statutes which are illegal in the state of Texas. > > I have never heard of this and a search online didn't produce any helpful > information. Can anyone help me with this? I certainly want to avoid > suggesting anything unethical or illegal. > > Thanks, > Ruth Jones, CFRE >

I agree. Thank you for your response. On ‎Friday‎, ‎January‎ ‎25‎, ‎2019‎ ‎01‎:‎43‎:‎55‎ ‎PM‎ ‎CST, John Taylor <johntaylorconsulting@GMAIL.COM> wrote: If they are telling you it is illegal then I would believe them.  They would know. I am not familiar with Texas legal statues so you might want to ask your lawyer.  But I personally would not want to press this issue with someone who feels that they are following the law. John John H. TaylorPrincipal, John H. Taylor Consulting 2604 Sevier St. Durham, NC   27705johntaylorconsulting@gmail.com919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Fri, Jan 25, 2019 at 2:38 PM Ruth Jones <000000024edc078f-dmarc-request@listserv.fundsvcs.org> wrote: Our nonprofit is planning a free, community event and approached a handful of companies with small sponsorship opportunities. (These are well within the sponsorship definition of the IRS and not the "advertising" definition.) A representative at an insurance company told me it was illegal for insurance companies to sponsor an event for an entity that was also their client (which is our case here). He mentioned it would fall under rebating statutes which are illegal in the state of Texas. I have never heard of this and a search online didn't produce any helpful information. Can anyone help me with this? I certainly want to avoid suggesting anything unethical or illegal. Thanks, Ruth Jones, CFRE