AboutHarvey Mechanic Expertise Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer question about Nonprofit's Unrelated Business or how to fill out forms. This forum is only for legal questions about a specific nonprofit asked by members or those otherwise directly effected by the specific nonprofit organization.
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Question How would it effect our status? Can we have a television broadcast that is sponsored by for profit companies. Say at the end of a tape broadcast in our credits we list the name of our sponsors
Answer Certainly you can give acknowledgments. It does not appear that what you are referring to would raise beyond that to what the IRS calls advertisements.
Regarding Corporate Sponsorships - Donor Recognition Adverts
www.irs.gov/pub/irs-tege/eotopico94.pdf at page 5 the IRS writes,
discussing its earlier Announcement 92-15:
"...if an exempt organization performs valuable advertising,
marketing and similar services on a quid pro quo basis for the
sponsor, the payments are not contributions and questions of
unrelated trade or business arise."
The Announcement further stated that "the Service would not apply
the guidelines to organizations that are of a purely local nature
and that receive relatively insignificant gross revenue from
corporate sponsors and that generally operate with significant
amounts of volunteer labor."
www.irs.gov/pub/irs-regs/td8991.pdf has 2002 IRS regulations with
explanation of the 2% rules for value received by corporate
sponsors.
Harvey Mechanic
Attorney At Law
Harvey108@hotmail.com
