Corporate sponsorship is a form of advertising in which companies monetarily assist a foundation, non-profit or charity to be associated with certain events, or to be associated with our programs and or website . When the sponsorship of a nonprofit or charitable event is involved, the sponsorship activity is often referred to as event marketing or cause marketing. Snow Angels in Ecuador hopes their are companies out there the would be proud to show their support for the good deeds that we do on a daily basis.
What is a Sponsorship?
A sponsorship (also known as a corporate sponsorship) is a payment generally made by a business to a nonprofit, which works to further the nonprofit’s mission. By becoming a sponsor, your business will be recognized by Snow Angels in Ecuador with an acknowledgment that your business has supported our activities, programs, or special events. We believe that a successful sponsorship should both work for both parties by attracting the attention of for-profit businesses via public recognition of your business’s connection with us.
Are Corporate Sponsorships Tax Deductible?
The IRS will look at the payment made to a nonprofit by a corporate sponsor and decide whether the payment is a tax-free gift (charitable contribution) or a taxable advertising payment. The IRS focuses on whether the corporate sponsor has any expectation that it will receive a “substantial return benefit” for its payment. If so, the payment will result in taxable income for the nonprofit that is reported on IRS Form 990-T. The difference comes down to the difference between a non-taxable acknowledgement, and a taxable “substantial benefit.”