Hello Experts. I had this question come across my email this week and would appreciate a gut check.
"We have a sponsor (Workout facility) that is wanting to partner with our dance team for this season. They want to provide classes for us, we promote him on social media, and he can use it as a tax write off. His accountant says he needs to receive a check for the amount disclosed in the contract and then he would gift it back to Ball State. This way there's a transaction on file."
They had me agreeing to a donation where the workout facility had to receive payment as income, then cut a check back to us for the donation until the concept of our promoting this workout facility on social media. That makes it feel like either advertising or an exclusive vendor relationship, and therefore, not a charitable, tax deductible donation after all.
What say you all? Thanks so much!
Nancy
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Nancy Vinje Jones
Ball State University Foundation
nvinjejones@bsu.edu------------------------------