Providing Acknowledgements for Nonprofit Event Sponsorship
Nonprofit sponsorships are common but the correct way to provide acknowledgments for nonprofit event sponsorship is not well understood. Fundraising galas, breakfasts, golf tournaments, and
Nonprofit sponsorships are common but the correct way to provide acknowledgments for nonprofit event sponsorship is not well understood. Fundraising galas, breakfasts, golf tournaments, and
Generally, exempt organizations are taxed on income from any unrelated trade or business activities regularly carried on by the organization, less any permitted deductions. Promotion of private companies is generally considered advertising – an unrelated business activity. If the recognition given to corporate sponsors is deemed to be advertising, then the sponsorship payment may be taxed as unrelated business income and will not be counted as public support for purposes of qualifying as a public charity.
Most states require you to register your organization if you solicit donations from their residents. Many states also require registration if your organization collects substantial or ongoing donations from their residents, even if you aren’t specifically targeting donors in that state. Download our comprehensive list of each state’s requirements.
Download our free guide to learn about the many elements needed to run a successful nonprofit organization, as well as how to avoid common pitfalls and mistakes.