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  • 1.  Advertising or sponsorship?

    Posted 09-04-2024 04:23 PM
      |   view attached

    With new leadership in place, we are heading toward better collaboration with Athletics which includes receiving information on their "advertising contracts". Please forgive my ignorance on this topic as this is new for me.

    I've attached an advertising contract draft for reference.

    My main question is: does advertising at any value negate the philanthropic aspect of an advertising/sponsorship contract?

    My secondary question is: if the radio spots listed in the attached contract are public radio, does that make the only tangible benefits the commercial radio spots and the entry fees?

    Thanks in advance!



    ------------------------------
    Emma Bouquet
    Tarleton State University
    ebouquet@tarleton.edu
    ------------------------------


  • 2.  RE: Advertising or sponsorship?

    Posted 09-04-2024 04:34 PM
      |   view attached
    It is important to understand that a sponsorship can receive limited "advertising." However, the IRS has strict definitions regarding when the advertising crosses the allowable lines. When it does, it completely negates any deduction.

    The attached well-written summary of the IRS regulations defines where that line is crossed. You will see that any advertising crossing the line makes the entire payment a payment for advertising.

    It is not our place to make a legal determination on your example. However, several of the advertising benefits cross the advertising line. That includes much of what you highlighted and others you did not.

    I'd take your contract and the attached guide to Counsel or your CFO for a ruling.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Attachment(s)

    pdf
    Sponsorship versus Advertising - ASAE.pdf   57 KB 1 version


  • 3.  RE: Advertising or sponsorship?

    Posted 09-04-2024 04:43 PM
    I forgot to mention that CASE honors these IRS guidelines regarding counting. The newest (2024) Global Standards (2nd Edition) also references the specific IRS sections on page 270. However, the ASAE summary I shared is easier to read!

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 4.  RE: Advertising or sponsorship?

    Posted 09-12-2024 09:30 AM

    Thank you for your response, John! 

    I had found the ASAE summary, but wasn't sure if anything had changed since it was published. 



    ------------------------------
    Emma Bouquet
    Tarleton State University
    ebouquet@tarleton.edu
    ------------------------------

    Original Message


  • 5.  RE: Advertising or sponsorship?

    Posted 09-12-2024 09:39 AM
    Nope. I shared the ASAE guide mostly because it is so easy to read. However, if you want to read the IRS mumbo-jumbo - much of which has been in place since the 1960s and 1970s, you can go here:


    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


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