Yes - that sounds fine!
The details regarding what does - and does not - constitute "advertising"
from an IRS perspective can be found in the Legal and Law-Related section
of the download site.
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 Wed, Mar 27, 2019 at 9:07 AM Rich, Elizabeth <
riche@elms.edu> wrote:
>
> Thanks for the quick response. I should have been more specific about
> "advertising." We are just recognizing the sponsors at the event by
> thanking them on a screen and with tent cards on the table. Basically just
> logo and name recognition. So, it sounds like we are good to go. Thanks
> again for your help.
> Liz Rich
>
> Date: Tue, 26 Mar 2019 13:02:46 -0400
> From: John Taylor <
johntaylorconsulting@GMAIL.COM>
> Subject: Re: Event Question
>
> You have recalled that bit on advertising correctly, Alan. However, you do
> need to demonstrate that non-sponsors have the opportunity to purchase that
> same advertising. You see this often in athletic publications where a
> major contributor business is "given" a half-page ad in exchange for their
> donation. But "Bob's Athletic Surplus" store down the street could also
> purchase a half-page ad without having to make a sponsorship payment.
>
> And, again, it isn't "advertising" in the eyes of the IRS if it's simply
> name/logo and contact information.
>
> 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 Tue, Mar 26, 2019 at 12:46 PM Hejnal, Alan <
>
00000031f8bb5829-dmarc-request@listserv.fundsvcs.org> wrote:
>
> > Just to clarify, the issue related to the meal is in the context of what
> > the donor contributed, and what the donor (or its guests or other people
> of
> > its choosing) receive in return.
> >
> >
> >
> > So, as John says, if the gift results in the donor or the donor’s guests
> > receiving a meal that they wouldn’t have received otherwise, the fair
> > market value of the meals provided to those specific people would have to
> > be considered a benefit.
> >
> >
> >
> > But since you say that the breakfast is free, I was wondering whether you
> > might be asking about the mere fact that part of the sponsorship is
> > underwriting the breakfast. If the sponsor is merely underwriting the
> > breakfast as part of the event, that doesn’t affect the deductibility of
> > the sponsorship (subject to the usual determination that the event
> supports
> > the mission of the charitable organization). If the sponsor (or people
> of
> > its choosing) isn’t getting anything because of its gift, then there’s
> no *quid
> > pro quo.* Or, put another way, if the donor underwrites the breakfast
> > and all attendees get to eat for free, the fact that attendees
> representing
> > the donor also eat doesn’t create a *quid pro quo*, because they’re not
> > getting to eat as a benefit provided to the donor that isn’t provided
> > generally.
> >
> >
> >
> > John, I seem to remember an analysis that if an event/publication
> > establishes a price for advertising ($100 for a half-page ad or
> whatever),
> > that establishes the value of the advertising, so that if a charitable
> > sponsor receives such an ad as part of their sponsorship, it doesn’t
> > invalidate the charitable nature of the entire sponsorship, just reduces
> it
> > by the established value of the benefit. Has that been superseded?
> >
> >
> >
> > My US$0.02 worth; the usual disclaimers apply.
> >
> >
> >
> > Good luck!
> >
> >
> >
> > *Alan*
> >
> >
> >
> > *Alan S. Hejnal *
> >
> > Data Quality Manager
> >
> > Smithsonian Institution - Office of Advancement
> >
> > 600 Maryland Avenue SW, Suite 600E
> >
> > P.O. Box 37012, MRC 527
> >
> > Washington, DC 20013-7012
> >
> > (: 202-633-8754 | *:
HejnalA@si.edu
> >
> >
> > [image: SNAGHTML5cbfa34] <https://www.si.edu/>
> > [image: AASP_FundSvcs_LOGO-01(040pct)(mark)]
> >
> >
> >
> >
> >
> > *From:* Advancement Services Discussion List <
> >
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor
> > *Sent:* Tuesday, March 26, 2019 11:17 AM
> > *To:*
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
> > *Subject:* Re: [FUNDSVCS] Event Question
> >
> >
> >
> > If anyone can walk in off the street and get a free breakfast, then you
> > are fine there. But if paying to attend the event is the only way to
> eat,
> > then you must calculate a FMV.
> >
> >
> >
> > But giving free advertising (beyond name recognition and contact
> > information) makes the entire payment non-deductible, period.
> >
> >
> >
> > John
> >
> > John Taylor
> >
> > 919.816.5903
> >
> >
johntaylorconsulting@gmail.com
> >
> >
> >
> > Big ideas; small keyboard
> >
> >
> > On Mar 26, 2019, at 11:12 AM, Rich, Elizabeth <
riche@elms.edu> wrote:
> >
> > Dear Colleagues,
> >
> > I hope your brackets are in tact. I have a tax question for you. We are
> > holding an breakfast event and have asked our vendors and other companies
> > for sponsorships of the event. There are different levels that get
> > different things, such as seating at tables and advertising. The
> breakfast
> > is free for everyone and advertising has minor cost, so they are not
> really
> > getting anything. The sponsorship is basically a gift to our annual fund.
> > The question is, must I subtract the cost of breakfast and advertising
> from
> > the gift amount as non-taxable amount?
> >
> > Thanks,
> >
> > Elizabeth Rich
> >
> >
> >
> > --
> >
> > Elizabeth Rich
> > Director of Advancement Services
> > Elms College, 291 Springfield Street, Chicopee, MA 01013
> > Ph: 413-265-2403 Fax: 413-265-2449
> >
> > To make a gift:
http://www.elms.edu/make-a-gift-online/
>
> --
>
> Elizabeth Rich
> Director of Advancement Services
> Elms College, 291 Springfield Street, Chicopee, MA 01013
> Ph: 413-265-2403 Fax: 413-265-2449
>
> To make a gift:
http://www.elms.edu/make-a-gift-online/
>