Money Talk: sponsorships from businesses

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sponsorships from businesses

Printed From: Community Theater Green Room
Category: Theater Administration
Forum Name: Money Talk
Forum Discription: Questions about fundraising and promotion
URL: http://www.communitytheater.org/forum/forum_posts.asp?TID=2884
Printed Date: 10/30/25 at 8:38pm
Software Version: Web Wiz Forums 8.05 - http://www.webwizforums.com

Topic: sponsorships from businesses

Posted By: oops
Subject: sponsorships from businesses
Date Posted: 12/24/07 at 8:39pm

Does anybody know the anser to this?

We are incorporated as a not-for-profit community theatre group, but we have not applied for 501c3 status yet.

If businesses give us money (as in perhaps sponsoring a show) can they deduct it from their taxes if we are not a 501c3? Perhaps, a business expense deduction as an advertising expense?

Which would be better for the business tax-wise, a charitable donation (if we became 501c3, and which I think they could only claim part of) or a straight business expense deduction for advertising which they could deduct the whole thing as an expense?

I hope this makes sense.

Thanks,

Sue

Replies:

Posted By: 75director
Date Posted: 12/26/07 at 11:56am

While I'm no expert on tax issues, I believe in order for the business to deduct the expense from their taxes you would need to be a 501(c)(3), or have another tax exempt organization, like a community foundation, accept the money on your behalf, and then give you the money. There are several community projects in my area that do that.

But my biggest piece of advise is to bite the bullet and jump through the hoops to get your own 501(c)(3) designation. Most businesses and grant making entities won't give you money unless you are a 501(c)(3). It is well worth the time and hassle. Maybe find an attorney in town who will do the work for you for free.

Posted By: sonshine
Date Posted: 8/27/08 at 4:01pm

It is true that they can only claim the amount if you are a 501c3 BUT the IRS is coming down hard on this. What do we non 501c3s do until we get our status?