IDA Fiscal Sponsorship Handbook 2011/2012 - International ...

IDAFiscalSponsorshipHandbook 2011/2012Partially Deductible ContributionsPre approved text III:[Project Name] is a fiscally sponsored project of the International DocumentaryAssociation, a 501(C)(3) nonprofit arts organization. Contributions in behalf of[Project Name] are payable to IDA. The value of [Description of Goods or ServicesReceived] is [$xx.xx]. Any contribution above [$xx.xx] is tax deductible to the extentpermitted by law.Pre approved text IV:[Project Name] is a fiscally sponsored project of the International DocumentaryAssociation (IDA), a 501(c)(3) nonprofit arts organization. Contributions in behalf of[Project Name] are payable to IDA. The value of [Description of Goods or ServicesReceived] is [$xx.xx]. Any contribution above [$xx.xx] is tax deductible to the extentpermitted by law. IDA will administer all funds received in behalf of [Project Name] and exercisefinancial oversight to assure that funds are spent for their designated purpose. IDAwill issue a receipt for tax purposes.Corporate Sponsorship:Corporate Sponsorship is, overall, a very small part of the revenue received in behalf ofsponsored projects. However, it can be a valuable source of revenue for somedocumentary projects. Sponsorship may, in certain circumstances, be tax deductible. Ifyou plan on seeking corporate sponsorship it is very important to distinguish betweenSponsorship and Advertising.Sponsorship as defined by the IRS includes:“...any payment made by a person engaged in a trade or business for which the personwill receive no substantial benefit other than the use or acknowledgment of the businessname, logo, or product lines in connection with the organization's activities. "Use oracknowledgment" does not include advertising the sponsor's products or services.”-IRS Publication 598http://www.irs.gov/formspubs/page/0,,id%3D12668,00.htmlA payment is not a qualified sponsorship payment if, in return, the organizationadvertises the sponsor's products or services.Advertising includes things like:-Product placement.-Ads for the company or product on the projectʼs website.-Public endorsements of the company or its products.-Inducements to purchase or use the companyʼs products or services.-Mentions of the companyʼs products, services or special deals in any social media.FSPHANDBOOK–12/20/201116