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  • 1.  Sponsorship Contracts

    Posted 05-26-2022 08:25 AM

    Hello, y'all!

     

    I'm working with our Athletics Development Team on gift compliance, and I came across sponsorship contracts that have language that the sponsor must also fund athletic scholarships.  Personally, I've never encountered contract language which required a gift as a condition of the sponsorship contract.   To me, this isn't a gift, but I could be off base.  Has anyone experienced this?  Is this the "norm"? 

     

     

    Thank you in advance for any insight you have. 

     

    Michele

     

    Responsibility ~ Self-Assurance ~ Arranger ~ Relator ~ Input

     



  • 2.  RE: Sponsorship Contracts

    Posted 05-26-2022 08:38 AM
    Depends. Would need to see the agreement. Nonstandard agreements are becoming standard. They are soooo complex and not clear. I have seen non-athletic agreements that state they are grants or sponsorships but they can be counted as gifts. Companies do not understand gift terminology and things get weird fast with these type of agreements. For example, just a few weeks ago I reviewed a "grant" but all it said was to be used for XYZ and we want nothing in return but basic stewardship. Yep. That is a gift. You need to see if there is any benefits to the company, advertising, return of funds clauses, indemnification clauses and etc. Athletics is whole different story though because of NCAA guidelines. I work close with our NCAA compliance Director to ensure we are meeting those guidelines.

    I am sorry I could not be more of a help. 

    Sent from my iPhone



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  • 3.  RE: Sponsorship Contracts

    Posted 05-26-2022 09:02 AM

    Hello Michelle,

     

    I have come across these types of contracts in a number of institutions.  In cases where the organization has a partnership or business relationship with the institution and the contributions are tied to contractual obligations, the contributions are not charitable in nature.   When we become aware of these types of contributions, we record them as revenue rather than fundraising $$.  The hard part is that sometimes you have to do a little digging and make some calls to find the contracts.

     

    Michael

     




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  • 4.  RE: Sponsorship Contracts

    Posted 05-26-2022 09:05 AM
    You are correct.  If the sponsor is contractually required to find a scholarship it is not a gift.

    About 10 years ago CASE issued a special notice discussing these "corporate partnerships."  While there obviously is a benefit to the institution, these are not deductible or countable donations.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



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  • 5.  RE: Sponsorship Contracts

    Posted 05-26-2022 09:17 AM

    Thank you all for your responses.  Looks like I have my work cut out with our Athletics folks! 

     

    Have a great day!

     

    Responsibility ~ Self-Assurance ~ Arranger ~ Relator ~ Input

     




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