Thank you for your response, John!
I had found the ASAE summary, but wasn't sure if anything had changed since it was published.
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Emma Bouquet
Tarleton State University
ebouquet@tarleton.edu------------------------------
Original Message:
Sent: 09-04-2024 04:32 PM
From: John Taylor
Subject: Advertising or sponsorship?
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, 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: 9/4/2024 5:23:00 PM
From: Emma Bouquet
Subject: Advertising or sponsorship?
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!
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Emma Bouquet
Tarleton State University
ebouquet@tarleton.edu
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