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  • 1.  Yeah another Athletics Sponsorship Question

    Posted 08-22-2024 01:25 PM

    Hello,

    Our football program hosts a 'coaches' show during the football season. In the past it was just coaches/players being interviewed on some spot on campus and then they would post it online.

    This year they decided to get a sponsor for the show. The show will now take place/be filmed at a local restaurant/bar. The athletics department went ahead and did a press release around the 'partnership' and the release mentions that the restaurant won local awards for "Best Sports Bar", "Best Wings", "Best Meal for the Money", and other things of that nature. Since this press release only went out as a result of the sponsorship - does it negate the qualified sponsorship and cross-over into advertising now. I would lean yes, but there is disagreement in our office.

    Also, if anyone has any advice on how to deal with Athletics programs, I would greatly appreciate it. A lot of my headaches come with working with Athletics because they either don't understand the rules and regulations around charitable giving or they (more likely) just don't care.

    Thanks



    ------------------------------
    Tioga Anderson
    East Stroudsburg University Foundation
    tanderson@esufoundation.org
    ------------------------------


  • 2.  RE: Yeah another Athletics Sponsorship Question

    Posted 08-22-2024 03:19 PM
    If the sponsor is the restaurant, then you are correct. Those statements negate the gift. There isn't any gray area. The IRS language is clear. Any endorsement or inducement language is advertising, and the payment is 100% payment for that.

    Your VP needs to work with the head of Athletics and ensure they at least know that policies exist. Violation of university policies often results in termination. These are senior-level discussions. You need the support of your leadership.

    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






  • 3.  RE: Yeah another Athletics Sponsorship Question

    Posted 08-22-2024 03:56 PM
    Edited by Tioga Anderson 08-22-2024 03:57 PM

    Thanks John. We recently went to the trouble of making a brochure for sponsorships and stating that they must abide by the rules of qualified sponsorships, etc. Hopefully that helps somewhat. I think the big issue is that we are an affiliate of the University, a "University Foundation", so they think they can use us to "get around" certain things. They often make deals and agreements without our foreknowledge and then we have to scramble to make them work, if possible, or refuse to honor the "agreement", which causes consternation. Or we take funds for a sponsorship, like above, and then they put out a press release we know nothing about.



    ------------------------------
    Tioga Anderson
    East Stroudsburg University Foundation
    tanderson@esufoundation.org
    ------------------------------

    Original Message


  • 4.  RE: Yeah another Athletics Sponsorship Question

    Posted 08-22-2024 04:41 PM
    The operating agreements we created at NC State between us an all "affiliated entities" required them all to adhere to our policies. Perhaps that is what is needed at ESU. 

    And the law is the law. When it comes to the IRS, trying to "get around" the rules is precisely the way to lose your tax exempt status.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 5.  RE: Yeah another Athletics Sponsorship Question

    Posted 08-23-2024 09:57 AM

    Thanks, I'm actually not sure if we have operating agreements outside of our overall agreement with the University. Might be something we should adopt specifically for partnering with Athletics. Thanks for the advice!



    ------------------------------
    Tioga Anderson
    East Stroudsburg University Foundation
    tanderson@esufoundation.org
    ------------------------------

    Original Message


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