IRS Finalizes Regs Covering Sponsorship

Payments will be considered charitable contributions where there is no arrangement that the sponsor will receive 'any substantial return benefit in exchange for the payment'

The Internal Revenue Service has published final Regulations to determine whether sponsorship payments for charity fund raisers are considered charitable contributions or unrelated, and possibly taxable, income.

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Fiscal Sponsorship: For the Funders, Sponsors and the Sponsored
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Fiscal sponsorship is a time-honored method to spawn new charitable activity when the people with the vision and the energy to do the work do not have recognition of federal tax-exempt status.

It can function smoothly as an incubator of important new projects. Or it can function badly as a serious trap for the unwary.

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SAY THAT AGAIN?

October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

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IRS Finalizes Regs Covering Sponsorship

IRS Finalizes Regs Covering Sponsorship