Description
What is an Acknowledgment?
Not for Profit Acknowledgment or Advertising? Acknowledgement • Use or acknowledgment of the name or logo (or product lines) of the sponsor’s business, as long as use is not qualitative or comparative – But slogans which are an established part of identity are permissible • List of sponsor’s location, telephone number, and/or internet address, including a hyperlink from the exempt organization’s web site to the sponsor’s web site • Product displays, visual depictions, product samples (whether products are sold or are free) Advertisement • Qualitative or comparative, price information, indications of savings or value, endorsements, inducement to purchase Illustrations - Acknowledgement • Name and Logo on Functional Items: Use of sponsor’s name and logo on advertisements for events (Reg § 1.513-4(f), Ex 1); event programs, cups used at event, helmets and jerseys on players (Ex 4) • Naming of Events: “Coca-Cola Young Scholar’s Program” (TAM 9805001) • Website Listing: List of sponsor names on website, including hyperlink to sponsor’s site (PLR 200303062) • Product Display: Displays of automaker sponsor’s cars at event (Reg § 1.513-4(f), Ex 11) • Established Part of Company’s Identity: “Better Research, Better Health” (Reg § 1.513- 4(f), Ex 9) • Exclusive Sponsors – Right to be sole sponsor of an event, or exclusive sponsor among competitors (Reg§ 1.513-4(f), Ex 4) Illustrations - Advertising • Name and Logo on Unrelated Items: Sponsor name on souvenir flags (purchased by the tax-exempt) bearing sponsor’s name, for use by sponsor’s employees (Reg §1.513-4(f), Ex 5) • Call to Action: – “For your music needs, give our sponsor a call today” (Reg § 1.513-4(f), Ex 7) – “Visit our sponsor today for the finest selection of music CDs and cassette tapes” (Reg § 1.513-4(f), Ex 8) • Comparative Language: “language is used comparing R's product with the products of other manufacturers, or claiming that it is rated best by veterinarians” TAM 9805001 • Endorsement: “We endorse sponsor’s drug and suggest you contact your physician for a prescription.” Reg § 1.513-4(f), Ex 12 • Weblink to Sales Page: Link from tax-exempt’s sponsor acknowledgment page to sponsor’s sales ad – 2000 EO CPE, the IRS stated that “a moving banner is probably more likely to be classified as an advertisement.”