That makes sense, thank you. I will check with counsel and reiterate to the post creators that while it's ok to publicly thank sponsors to be careful not to cross that line into advertising.
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Tioga Anderson
East Stroudsburg University Foundation
tanderson@esufoundation.org------------------------------
Original Message:
Sent: 11-29-2025 10:07 AM
From: John Taylor
Subject: Sponsor Spotlight
I think you'll want input from counsel. When it comes to QPQ issues, the IRS has been clear that it does not matter whether a donor knew about a benefit in advance. Only whether their gift resulted in a benefit subsequently.
In this case, the only way a local business receives free advertising is if they previously made a gift. That's basically the definition of a quid pro quo. One way you could avoid the appearance of a QPQ is also to include advertising from local non-donor companies.
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 11/29/2025 10:38:00 AM
From: Tioga Anderson
Subject: RE: Sponsor Spotlight
The only reason I'm not sure about it is because no money exchanged hands for these posts and no expectations or promises for posts like these were part of the sponsorship package. Our stewardship dept is just looking at past sponsors and highlighting them because they need content. So I'm just wondering if it negates the tax deductibliliy of sponsorship that happened in the past? They may have sponsored an event 6 months ago and are just being highlighted now.
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Tioga Anderson
East Stroudsburg University Foundation
tanderson@esufoundation.org
Original Message:
Sent: 11-26-2025 08:17 PM
From: John Taylor
Subject: Sponsor Spotlight
If the posts are endorsing the sponsor - or offering inducements to obtain their products or services - that constitutes advertising in the eyes of the IRS.
The posts should do little more than mention the sponsor name and contact information.
John
John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard
Original Message:
Sent: 11/26/2025 8:40:00 PM
From: Tioga Anderson
Subject: Sponsor Spotlight
Hello,
Our stewardship dept started a new initiative that I only became aware of after seeing it on social media. It's a "Sponsor Spotlight" where they highlight a local business (and it's definitely advertising) that has been a sponsor (either through events or signage at the various facilities). They've received tax receipts for the sponsorships. Does the social media posts eliminate the tax deduction? Or is it ok because they didn't specifically pay for these posts?
Thanks for any insights!
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Tioga Anderson
East Stroudsburg University Foundation
tanderson@esufoundation.org
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