DCCPTA Board Committee Report Research Findings
Revised Date 10-15-2016
Is listing the link considered advertising? Review these findings to determine your Interpretation if a sponsors link as advertising.
- IRS’s definition of advertising does not include limits of sponsor web links. According to IRS – 3. Unrelated Trade or Business / Excluded Trade or Business Activities / Advertising, https://www.irs.gov/publications/p598/ch03.html#en_US_2014_publink100019559
Definition
Advertising includes:
- Messages containing qualitative or comparative language, price information, or other indications of savings or value;
- Endorsements; and
- Inducements to purchase, sell, or use the products or services.
According to IRS’s definition, a link back to their website in my interpretation would not qualify advertising.
Interpretation
Printing sponsor website link does not containing qualitative or comparative language, price information, or other indications of savings or value. It is not an Endorsements; and does not Inducements to purchase, sell, or use the products or services
- National PTA Statement
The 2016–2017 National PTA, Official Back-to-School Kit, PTA Fundraising Quick Reference Guide, clearly allows for identification of the PTA sponsors.
Recognition Guidelines
“In return for sponsorship, a PTA may thank the sponsor for its contribution. The thank you may be in writing or on posters, banners or other appropriate media. The written acknowledgement must be limited to an expression of thanks and can list identifying information for the sponsor. The acknowledgement can never make a qualitative judgment regarding the sponsor or its product, and it cannot request that people patronize the sponsor or buy its products; otherwise, the sponsorship payment will be subject to federal income tax.”
Interpretation
Printing sponsor website link does not qualitative judgment regarding the sponsor or its product, and does not request that people to patronize the sponsor or buy its products. A web address is an identifying information like a street address was 50 years ago. Currently in some cases web links are the only form of company identification. There are many companies that do not have street addresses to be identified by.
- Respected Greater Washington Society of CPAs clearly approves the use of websites links when recognizing sponsors
Sponsorships, Advertising, Endorsements and Cause Marketing: Understanding Critical UBIT Issues for Nonprofits
June 16, 2011 12:00 – 2:00 p.m. ET
Venable LLP
575 7th, Street, N.W., Washington, DC 20004
- Respected National Nonprofit Law Blog clearly approves the use of websites links when recognizing sponsors.
Nonprofit Law Blog
UBIT: Advertisements vs. Qualified Sponsorship Payments
By Erin Bradrick on March 13, 2014
http://www.nonprofitlawblog.com/ubit-advertisements-vs-qualified-sponsorship-payments
Qualified Sponsorship Payments
In contrast to advertising, a qualified sponsorship payment is any payment made to a nonprofit by an individual or company without an arrangement or expectation that the payer will receive a benefit in return. The nonprofit may provide minor benefits in connection with a QSP without turning the QSP into advertising. These minor benefits may include acknowledgement of the sponsorship through use of the donor’s name or logo, or goods or services of an insubstantial value. If the nonprofit does provide the use or acknowledgment of a donor’s sponsorship, it should not include qualitative statements regarding or endorsements of the donor’s goods or services in the acknowledgment. However, a use or acknowledgment may include a list of the donor’s locations, contact numbers, or website; a logo or established slogan; and value-neutral descriptions, displays, or depictions of products or services. In general, the content of the use or acknowledgment should be controlled by the nonprofit and not by the entity making the payment
- Adler & Colvin A Law Corporation
CORPORATE SPONSORSHIP: FREQUENTLY ASKED QUESTIONS
“What acknowledgment can we give our sponsor without providing a substantial return benefit? You can acknowledge the sponsor by publishing its name; product lines; logos and slogans, as long as they don’t contain qualitative or comparative descriptions of its products, services, facility or company; locations; telephone numbers; Internet URLs; and value-neutral descriptions, including displays or visual depictions, of its product lines or services. You can also acknowledge the sponsor as your exclusive sponsor, or as your exclusive sponsor for a particular trade, business or industry.”
- The National PTA website use web links back to the sponsor’s website, some including sales info.
http://www.pta.org/about/content.cfm?ItemNumber=3019
Proud National Sponsors
Our highest level of corporate commitment, Proud National Sponsors make an annual investment in PTA which helps power key programs and services. We are especially grateful for their support and invite you to learn more about each of them.
Amazon Kindle
Kindle and National PTA are working together to help families get more involved in their children’s reading and enhance their emerging interest in books. In support of this mission, the PTA Family Reading Experience, Powered by Kindle, is an easily replicable event that local PTAs can implement within their schools to engage families in fun activities and provide them with tools and strategies to help their children become better readers. Connect with Kindle.
Interpretation
Listing sponsor website links are being used on the National PTA website.
- The Florida State PTA website they clearly use web links back to the sponsor’s website.
Links to https://legolandfloridatickets.legoland.com/LLF/Content.aspx?Kind=LandingPage
Interpretation
Listing sponsor website links are being used on the Florida PTA website.