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--- 501c3faq [2025/02/04 10:37] – [FAQ: Corporate Sponsorship Payments for Non-profits (DRAFT v0.1)] gabrieldane
+++ 501c3faq [2025/03/05 13:58] (current) – [8. Need Help? / Links:] gabrieldane
@@ Line 1: / Line 1: @@
-====== FAQ: Corporate Sponsorship Payments for Non-profits (DRAFT v0.1) ======
+====== FAQ Simple Guide: Sponsorship vs. Advertising for Non-profits (DRAFT v0.11) ======
-This FAQ helps non-profits understand the difference between **qualified sponsorship payments** and **advertising**, based on IRS guidelines under IRC Section 513(i).
+Thinking about getting corporate sponsors? This FAQ breaks down **what counts as a sponsorship (tax-free money)** and **what counts as advertising (which is taxed)**—all based on IRS rules. We’ll keep it simple so you know what’s okay, what’s not, and how to stay compliant.
+(Based on IRS guidelines under IRC Section 513(i))
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@@ Line 28: / Line 30: @@
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-===== 3. Examples of What's OK (Qualified Sponsorship Payments) =====
+===== 3. What's OK (Qualified Sponsorship Payments) =====
-\\
 | **Example** | **Why It’s OK** |
-| Displaying a sponsor's logo or slogan on event materials without promoting their products or services. | Acknowledgement only; no advertising. |
+| ✅ Displaying a sponsor's logo or slogan on event materials without promoting their products or services. | Acknowledgement only; no advertising. |
-| Listing the sponsor’s name, logo, and location (e.g., "Sponsored by ABC Co., 123 Main St"). | Value-neutral recognition without endorsement. |
+| ✅ Listing the sponsor’s name, logo, and location (e.g., "Sponsored by ABC Co., 123 Main St"). | Value-neutral recognition without endorsement. |
-| Saying "Thank you to XYZ Corp for their generous support" on a banner or website. | Simple acknowledgement of sponsorship. |
+| ✅ Saying "Thank you to XYZ Corp for their generous support" on a banner or website. | Simple acknowledgement of sponsorship. |
-| Displaying a sponsor's product at an event (e.g., free water bottles with their logo). | Value-neutral and does not encourage sales. |
+| ✅ Displaying a sponsor's product at an event (e.g., free water bottles with their logo). | Value-neutral and does not encourage sales. |
-\\
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-===== 4. Examples of What's NOT OK (Advertising) =====
+===== 4. What's NOT OK (Advertising) =====
-\\
 | **Example** | **Why It’s NOT OK** |
-| "Visit ABC Co. for the best deals in town!" | Contains qualitative language ("best deals"). |
+| ❌ "Visit ABC Co. for the best deals in town!" | Contains qualitative language ("best deals"). |
-| "Shop at XYZ Store and get 10% off your purchase today!" | Includes pricing and promotional language. |
+| ❌ "Shop at XYZ Store and get 10% off your purchase today!" | Includes pricing and promotional language. |
-| "Our event is proudly brought to you by ABC Co., the leader in home appliances." | Promotional and endorses the sponsor’s business. |
+| ❌ "Our event is proudly brought to you by ABC Co., the leader in home appliances." | Promotional and endorses the sponsor’s business. |
-| Exclusive provider agreements where only the sponsor's product can be sold at the event. | Substantial return benefit for the sponsor. |
+| ❌ Exclusive provider agreements where only the sponsor's product can be sold at the event. | Substantial return benefit for the sponsor. |
-\\
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-===== 8. Need Help? =====
+===== 8. Need Help? / Links: =====
 If you’re unsure whether a sponsorship agreement meets IRS guidelines, consult a tax professional or refer to IRS Treasury Regulation 1.513-4 for detailed guidance.
   * [[https://www.irs.gov/charities-non-profits/advertising-or-qualified-sponsorship-payments]]
+Selling Products
+  * [[https://www.501c3.org/kb/selling-products-unrelated-business-income/]]