Toolkit FAQs

• What it is a charitable corporate sponsor?

  A charitable corporate sponsor is when a company provides support for a university event or activity in which there is no arrangement or expectation that the company will receive any substantial return benefit. Support might include monetary payment, transfer of property, a gift in-kind or provision of services. In return, the sponsor's name and/or logo can appear on event brochures, banners, or other promotional materials.

  The IRS defines a sponsorship as:

  Any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgement of the business name, logo, or product lines in connection with the organization’s activities. ‘Use or acknowledgement’ does not include advertising the sponsor’s products or services. The organization’s activities include all its activities, whether related to its exempt purposes.

  The following are not considered ways to acknowledge the charitable sponsorship:

  • Messages containing qualitative or comparative language, price information or other indications of saving or value endorsements.
  • Advertising and soliciting the purchase, selling or using the company’s products or services.
• What is the difference between Sponsorships and Advertising?

  While working with a company, a program or event must be careful to determine whether a company’s support is considered sponsorship or advertising. A sponsorship is considered charitable when a company’s donation is predominately used for program or event’s costs and receives recognition only (e.g., logo placement, signage, verbal recognition, a featured speaker, etc.) for its support. Advertising is a payment made to showcase a company or their products to your audience, it is not a charitable donation.

• Why are you charging a 5% fee on my donation?

  Please be aware that 5% of each gift (with the exception of student scholarship support) is invested in enhancing CSUSM’s capacity to support the cost of raising and administering funds.

• Why do I need to start the corporate sponsorship process 4-6 months before my event? What if I don’t have that much time?

  We ask for at least 4-6 months lead time before your event to begin this process to ensure a successful outcome. Corporations require time to discuss the sponsorship opportunity internally before they can respond to your request. Many corporations also make funding decisions during a certain time each year. If you don’t have that much time, it’s best to rely on connections you already have with local companies to have a better opportunity to receive sponsorships.

• What is a Gift Receipt?

  A gift receipt is a written confirmation of a company’s charitable giving used for tax purposes. Gift receipts are automatically sent to the organization after the funds have been received. However, they must be requested for a gift in-kind.

• What is a Gift In-Kind?

  In-kind gifts are contributions of goods or services, other than cash grants. Examples of in-kind gifts include: Goods, like computers, software, furniture, and office equipment, for use by your organization or for special event auctions. You can also provide a gift receipt when you receive a gift in-kind from a corporation.

• What is a Fair Market Value?

  If the sponsor receives a benefit that includes tickets, a meal, or items with financial value (e.g., gift or tangible item), the value of the benefit (fair market value) will be deducted from their charitable gift amount and reflected in their gift receipt. However, the benefiting area still receives the full sponsorship.