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  • 1.  Fair Market Value - Event Sponsorships

    Posted 07-23-2024 04:22 PM

    Hi all,

    I'm sure this has been raised before, but what is the best practice regarding establishing fair market value for the benefits received by sponsoring organizations? 

    I know the FMV of free sponsor tickets is the FMV associated with any ticket. Do we try to ascertain the FMV of advertising at different levels, or not?

    Thanks,

    Sarah



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    Sarah Sokora
    University of Dallas
    sdsokora@udallas.edu
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  • 2.  RE: Fair Market Value - Event Sponsorships

    Posted 07-23-2024 04:34 PM
    If the sponsorship includes advertising that is not available otherwise, then 100% of the payment is considered a payment for advertising. Name recognition, BTW, is not considered advertising.

    If, however, the advertising is in the form that you sell to other non-sponsoring vendors or companies, the value is what you charge those firms.

    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