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Corporate sponsorship or advertising

  • 1.  Corporate sponsorship or advertising

    Posted 07-02-2021 03:55 PM
    A student organization has been approached by a company that has offered to sponsor the group if they can put a link to their website along with a sentence about what the company does on the student org webpage.  Does having the company link on the student org webpage constitute advertising?

    Shawnna Murphy

  • 2.  RE: Corporate sponsorship or advertising

    Posted 07-02-2021 04:06 PM
    Well, let's first start with the reminder that most student organizations are not eligible to receive tax-deductible gifts.  The IRS has a pretty strict prohibition on this point.  It is extremely clear that the prohibition includes fraternities and sororities.  However, for other student groups, clubs, and organizations to be eligible they must exist for "exclusively educational purposes."

    Now, with that mouthful out of the way, providing a link to a corporate donor website does not constitute advertising in the eyes of the IRS.  What you must be careful about is not coming across as endorsing the company or inducing individuals to use their products or services.


    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