FundSvcs Community

Good Morning, I have a question regarding sponsorships. If a donor sponsors an event, but is not attending or getting any benefits. Is this considered a gift? Thanks Liz -- Liz Arizpe Director of Advancement Services Valparaiso University Advancement 1100 Campus Drive South Valparaiso, IN 46383 (Phone) 219-464-5610 *The information contained in this communication is confidential and is intended only for use by the addressee(s). Unauthorized review, use, disclosure or copying of this communication, or any part thereof, is strictly prohibited. If you have received this communication in error, please notify us immediately by return email and destroy this communication and all copies thereof, including all attachments.*

Thank you! On Mon, Mar 4, 2019 at 9:03 AM Michael Wyland <michael@sumptionandwyland.com> wrote: > Liz: > > > > Better minds than mine may elaborate, but I'd begin with two > considerations. > > > > 1) If there are benefits associated with sponsorship (beyond simple > recognition - see below), the sponsor should refuse those benefits in > writing prior to the event or awarding of the benefits, whichever comes > first. > > > > If they do not do so, they are subject to the potentially disqualifying > tax treatment of the benefits even if they do not take advantage of them. > Any charitable gift would be reduced by the fair market value (FMV) - not > cost - of the benefits not refused. > > > > 2) Sponsorship recognition does not negate a charitable gift as long as > the recognition does not become advertising under IRS definition. > Generally, mentioning price/product or including a "call to action" > constitutes advertising. > > > > [image: S&W_clr-small] > > Michael L. Wyland > > Sumption & Wyland > > 818 South Hawthorne Avenue > > Sioux Falls, South Dakota 57104-4537 > > (605) 336-0244 or (888) 4-SUMPTION > > > > Web site: http://www.sumptionandwyland.com > > LinkedIn Profile: http://www.linkedin.com/in/michaelwyland > > > > *"I never considered a difference of opinion in politics, in religion, in > philosophy, as cause for withdrawing from a friend." - Thomas Jefferson to > William Hamilton, April 22, 1800* > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *Liz Arizpe > *Sent:* Monday, March 4, 2019 8:52 AM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* [FUNDSVCS] Sponsorships > > > > Good Morning, > > > > I have a question regarding sponsorships. If a donor sponsors an event, > but is not attending or getting any benefits. Is this considered a gift? > > > > Thanks > > Liz > > > > -- > > Liz Arizpe > > Director of Advancement Services > > Valparaiso University > > Advancement > > 1100 Campus Drive South > > Valparaiso, IN 46383 > > (Phone) 219-464-5610 > > > > > *The information contained in this communication is confidential and is > intended only for use by the addressee(s). Unauthorized review, use, > disclosure or copying of this communication, or any part thereof, is > strictly prohibited. If you have received this communication in error, > please notify us immediately by return email and destroy this communication > and all copies thereof, including all attachments.* > -- Liz Arizpe Director of Advancement Services Valparaiso University Advancement 1100 Campus Drive South Valparaiso, IN 46383 (Phone) 219-464-5610 *The information contained in this communication is confidential and is intended only for use by the addressee(s). Unauthorized review, use, disclosure or copying of this communication, or any part thereof, is strictly prohibited. If you have received this communication in error, please notify us immediately by return email and destroy this communication and all copies thereof, including all attachments.*

As long as the event is fulfilling your charitable purposes. And even if they do attend it is still a gift to the extent you subtract the value of benefits. You simply cannot, however, provide free advertising to the sponsor in exchange. 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 Mon, Mar 4, 2019 at 9:52 AM Liz Arizpe <Liz.Arizpe@valpo.edu> wrote: > Good Morning, > > I have a question regarding sponsorships. If a donor sponsors an event, > but is not attending or getting any benefits. Is this considered a gift? > > Thanks > Liz > > -- > Liz Arizpe > Director of Advancement Services > Valparaiso University > Advancement > 1100 Campus Drive South > Valparaiso, IN 46383 > (Phone) 219-464-5610 > > > > *The information contained in this communication is confidential and is > intended only for use by the addressee(s). Unauthorized review, use, > disclosure or copying of this communication, or any part thereof, is > strictly prohibited. If you have received this communication in error, > please notify us immediately by return email and destroy this communication > and all copies thereof, including all attachments.* >

Liz: Better minds than mine may elaborate, but I'd begin with two considerations. 1) If there are benefits associated with sponsorship (beyond simple recognition - see below), the sponsor should refuse those benefits in writing prior to the event or awarding of the benefits, whichever comes first. If they do not do so, they are subject to the potentially disqualifying tax treatment of the benefits even if they do not take advantage of them. Any charitable gift would be reduced by the fair market value (FMV) - not cost - of the benefits not refused. 2) Sponsorship recognition does not negate a charitable gift as long as the recognition does not become advertising under IRS definition. Generally, mentioning price/product or including a "call to action" constitutes advertising. [S&W_clr-small] Michael L. Wyland Sumption & Wyland 818 South Hawthorne Avenue Sioux Falls, South Dakota 57104-4537 (605) 336-0244 or (888) 4-SUMPTION Web site: http://www.sumptionandwyland.com LinkedIn Profile: http://www.linkedin.com/in/michaelwyland "I never considered a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend." - Thomas Jefferson to William Hamilton, April 22, 1800 From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Liz Arizpe Sent: Monday, March 4, 2019 8:52 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Sponsorships Good Morning, I have a question regarding sponsorships. If a donor sponsors an event, but is not attending or getting any benefits. Is this considered a gift? Thanks Liz -- Liz Arizpe Director of Advancement Services Valparaiso University Advancement 1100 Campus Drive South Valparaiso, IN 46383 (Phone) 219-464-5610 The information contained in this communication is confidential and is intended only for use by the addressee(s). Unauthorized review, use, disclosure or copying of this communication, or any part thereof, is strictly prohibited. If you have received this communication in error, please notify us immediately by return email and destroy this communication and all copies thereof, including all attachments.