Canada - Sponsorship = charitable donation?

[Banacek]

Question for all the canuck teams:

Does anyone know if a sponsorship (name on car, etc. in exchange for $) is the same as a typically tax deductible donation to the university?

We've never really thought about it, but I suppose this would be useful to know. I know that donations to the university and affiliated groups are normal tax deductable charitable donations but if we are essentially selling add space on our car in the form of a sponsorship, is that the same thing? We've assumed no, and have never been asked for a donation tax reciept on sponsorships but think we could get a few more dollars if it was treated like a chaitable donation and mentioned that when we beg for money.

Anyone have any information on this?

Can someone point me to a reference in the laws and regulations?

How is it outside Canada?

[Banacek]

Question for all the canuck teams:

Does anyone know if a sponsorship (name on car, etc. in exchange for $) is the same as a typically tax deductible donation to the university?

We've never really thought about it, but I suppose this would be useful to know. I know that donations to the university and affiliated groups are normal tax deductable charitable donations but if we are essentially selling add space on our car in the form of a sponsorship, is that the same thing? We've assumed no, and have never been asked for a donation tax reciept on sponsorships but think we could get a few more dollars if it was treated like a chaitable donation and mentioned that when we beg for money.

Anyone have any information on this?

Can someone point me to a reference in the laws and regulations?

How is it outside Canada?

[Charlie]

You aren't selling anything, they are donating the money to you, and you just put thier name on the car for no apparent reason. http://fsae.com/groupee_common/emoticons/icon_smile.gif

We do it like I'm sure most university's do. Write a check to the University, we get the money, and it is tax deductable.

-Charlie Ping
Auburn University FSAE (http://eng.auburn.edu/organizations/SAE/AUFSAE)
5th Overall Detroit 2003
? Overall Aussie 2003. http://fsae.com/groupee_common/emoticons/icon_smile.gif

[Brent Howard]

At the University of Calgary it is considered a charitable donation to the university. However there are some rules we just found out. Basically as long as the company makes no specific requests of you it is charitable, but if they state that they want something in return it is considered a non-charitable donation. So we are just telling sponsors we will do what they want but don't request it in writing.

Brent

www.ucalgary.ca/fsae (http://www.ucalgary.ca/fsae)

[vinHonda]

At Toronto, the Faculty forces us to write our sponsors a tax reciept. All money that is donated to us from outside sources is considered charitable donation.

Vinh

University of Toronto Formula SAE Racing Team
www.fsae.utoronto.ca (http://www.fsae.utoronto.ca)

[Garbo]

The red tape is a bit tangled but as far as I am told, at Memorial, anyone that goes on the car is a 'sponsor' and forfeits the right to a tax receipt. If people want a tax receipt, they can't be on the car (so the admin. tells us). Of course, we stick them on the car anyway and since the admin. has no interest in the car whatsoever, they never find out. (we did a demo for the faculty a couple weeks ago and half a dozen technicians showed up along with a grand total of 1 prof)

Garbo