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501c3faq [2025/02/04 10:46] – gabrieldane501c3faq [2025/03/05 13:58] (current) – [8. Need Help? / Links:] gabrieldane
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-====== FAQ: Corporate Sponsorship Payments for Non-profits (DRAFT v0.11) ======+====== 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. 
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 +(Based on IRS guidelines under IRC Section 513(i))
  
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-===== 3. Examples of What's OK (Qualified Sponsorship Payments) ===== +===== 3. What's OK (Qualified Sponsorship Payments) =====
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 | **Example** | **Why It’s OK** | | **Example** | **Why It’s OK** |
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 | ✅ 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) =====
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 | **Example** | **Why It’s NOT OK** | | **Example** | **Why It’s NOT OK** |
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 | ❌ "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. 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]]   * [[https://www.irs.gov/charities-non-profits/advertising-or-qualified-sponsorship-payments]]
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 +Selling Products
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 +  * [[https://www.501c3.org/kb/selling-products-unrelated-business-income/]]
  
  
501c3faq.1738694810.txt.gz · Last modified: 2025/02/04 10:46 by gabrieldane