FundSvcs Community

Expand all | Collapse all

Is Recruiting Advertising?

  • 1.  Is Recruiting Advertising?

    Posted 7 days ago
    Happy Monday!

    I am thinking myself in circles and I hope someone can help me out of it!

    We have some event sponsorships where the sponsor would like to play a recruitment video to attract students to work at their company. The rest of the sponsorship falls firmly in recognition and not advertising. My circle that I'm running in is does a company that is not a staffing firm trying to attract students to work for their company advertising? It feels like advertising but doesn't fit firmly in the definition of advertising (qualitative/comparative, savings/value, inducement to purchase/sell).


    Mandy Smith
    Director of Gifts and Records Management
    Virginia Commonwealth University

  • 2.  RE: Is Recruiting Advertising?

    Posted 7 days ago
    It is difficult to imagine a recruiting video that doesn't say anything about the company and why they are better than someone else :-).  If that video introduces qualitative or comparative information about the company - and one has to believe it would - then the definition applies.


    John H. Taylor
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987

  • 3.  RE: Is Recruiting Advertising?

    Posted 7 days ago
    Hmm, I think John's right that this qualifies as advertising, but it doesn't necessarily make it subject to UBIT. 

    Normally, the IRS considers advertising to be an unrelated business activity that is subject to UBIT, and only exempts qualified sponsorships from incurring UBIT liability. However, there are aspects of advertising that might well be very related to the organization's charitable purpose. Facilitating recruiting and post-graduation employment is a substantial activity that colleges are involved in, and so income from recruiting marketing spent by corporations should  not be unrelated to the college's charitable purpose.

    Naturally, speak to counsel, but I think there's a good argument here that these are not qualified sponsorship payments, but not subject to UBIT either.

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151

    Schedule a 30-minute consultation now: