I am hosting a masquerade ball and hope to get several corporate sponsors. I am sure the corporations will ask if the sponsorship is tax exempt. Would it be? The checks will be made out to my business, expenses will be deducted and then 100% of proceeds minus expenses will go to charity.
2007-09-17 08:13:31 · 2 answers · asked by danielleinindy 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
The corporations can write it off as advertising expenses if they couldn't write it off as contributions. So it's not really going to matter to the companies.
2007-09-18 09:01:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I assume that your business is NOT a 501(c)3 registered charity. No, these sponsorships would not be tax deductible, even if all of the net money raised is given to a registered charity. If the checks were written to the charity then they'd be deductible.
2007-09-17 16:05:05 · answer #2 · answered by Judy 7 · 1⤊ 0⤋